How to Trade Cryptocurrency for Sustainable Profits in 2022

July 19, 2022

Bitcoin

How to Trade Cryptocurrency for Sustainable Profits in 2022

To date, some people still view cryptocurrency as a lottery where people come in, gamble with a certain amount of money and either win big or go home. While some others still view it as a guessing game. But in truth, cryptocurrency goes beyond mere guessing of numbers and involves deep analysis, strategy, and knowledge. Yes, anyone can snipe the volatile crypto market and luckily earn profits. But this move isn’t sustainable, and if such a person continues without a proper strategy, they would likely lose more than they have gained in total in the crypto market.

Therefore, it is important to have a proper plan to earn sustainable profits from crypto. It will help if you consider going into the market with a plan for your portfolio and its investment. Thus, this article aims to guide you in creating that plan. We will discuss some tips you need to enjoy sustainable profits from cryptocurrency in the year 2022. But first, let us discuss what sustainability means.

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What is Sustainability?

Traditionally, sustainability means the ability to consume or use a thing in such a way that others can get access to use it in good quality in future. It could mean not exhausting all resources due to those coming after you.

However, in crypto, sustainable profits refer to earnings in investment or capital that go beyond the current time and last longer. This means that traders trade with the goal of earning long-term profits that last the long haul.

Things To Do for Sustainable Profits in Crypto

There are various steps which can help secure your profits in crypto for the year. Some of the steps are discussed below:

Understand Various Crypto Concepts

To fully benefit from what the crypto market has to offer, you need to understand what it means. Crypto has evolved beyond spot trading, and new concepts spring up every now and then. It is important to study the various concepts of crypto and learn about the new trends arising in crypto each year.

Once you study these concepts, it becomes easier to pinpoint which aspect of crypto would earn you more profits. You can learn about DeFi, DAO, NFTs, yield farming and more.

Choose a Trading Platform

It is also vital that you choose a trading platform for your yearly transaction. If you’re an existing crypto user, you can decide to change the crypto exchange or wallet you use or maintain your current wallet. Some crypto exchanges/wallets regularly offer users rewards, airdrops, and cashback. Constant transactions through this platform would then offer more rewards than others.

Some exchanges like Kucoin list lesser-known coins, which makes it easier for traders to buy or sell these coins with a larger margin for profit.

Have a Plan

Never enter a crypto year without a plan. Every year re-evaluate your crypto transactions in the previous year and create a plan for the new year. Evaluation helps you discover what went wrong while you get a chance to refresh your ideas for the new year.

So, have a plan for the funds you want to invest in the crypto market. Also, have a plan for the trading strategies you wish to use. Will you be swing trading or day trading, or would you rather be a long-term trader? These are some questions you need to answer in your plan to help you earn sustainable profits in 2022.

Use Risk Management

It is important to use risk management for every trade to earn sustainable profits. Many traders suffer crypto liquidation or massive losses due to the absence of a risk management plan, hindering their ability to make long-term profits in the market.

So, it is important to always have a risk management plan. It helps to protect you when massive loss and liquidation. You can study risk management and choose anyone that works for you. It could be reduced leverage or the use of stop loss orders. Simply ensure that you always use a risk management plan. It also helps preserve your profits earned while protecting your current funds.

Consider Passive Income

If you’re looking to make sustainable profits in crypto for the year 2022, you should consider passive income. Passive income refers to funds earned without any immediate action by the user or profits derived from no live action by the user.

Crypto exchanges and blockchain protocols offer ways to make passive income. You can earn passive income through staking and yield farming. These are some ways to earn passive income in crypto, and it helps in that regardless of the market conditions, you keep earning rewards on your assets once they are locked in staking. However, it is important to be careful and ensure it is a trusted Defi protocol. Remember, if you don’t understand the yield, you are the yield.

Conclusion

In summary, ensure you have a plan for your investment in 2022 to earn sustainable profits. Above are some ways you can strategize to create such profits. Sustainable profit in crypto is not impossible. With the right steps and proper understanding, you can earn sustainable profits in 2022.

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