Is it worth quitting your job to trade crypto full time? This is one of the questions that most Nigerians and youths across the world are posing at the moment. Cryptocurrency is hype. We read about individuals who have made themselves millionaires through investing in Bitcoin at an early age or trading intelligently.
We witness images of freedom, where one can sit at home with a simple phone or laptop and earn money without getting off to Lagos or a boss and traffic. The dream of leaving the work and becoming full-time traders of crypto is the case with many. However, reality should be considered before that decision is taken.
The prospect of high returns makes Crypto appealing. Contrary to a regular job where you wait until the end of the month to receive your salary, crypto trading may make you a profit per day or even per hour. Crypto has helped some Nigerians to survive loss of jobs or low pay. This is a very enticing idea that one can be financially independent without the need to work under a boss.
But the fact is that crypto is very risky as well. The market is unpredictable. One day you can be profitable, the next day the market might collapse and destroy all that. You can imagine you are relying on trading and then you lose half the capital in a week. Such a loss will impact your rent, your food, your family, and even your peace of mind, in case crypto is the only source of income.
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Trading may also be an emotional burden in complete dependence. As complete survival depends on a combination of trades, the up and down of the market makes your mood. A good day can make you happy, a bad day can sink you into depression.
It is not a rollercoaster that you will be comfortable living with, particularly in a country such as Nigeria where electricity and internet connectivity are also a problem. Imagine you have put a trade and NEPA goes light or your data completes. A single error will cost you a lot of money.
Alternatively, you have a job, though not well paying, which provides you with stability. At the end of the month you at least know that there is going to be a salary. That salary will cover your essentials and you can spend part of it to trade crypto as well. A job also takes off the pressure on you.
You are not in urgent need to win all the trades and such a cool attitude can help you become a better trader. During the 2021 bull run, many individuals that hastily withdrew their bids regretted the act when the market crashed in the year 2022. However, those who retained their jobs to trade part time were more relaxed as even during the down turn in the market they maintained a stable income.
The more intelligent approach to crypto is balance. You are not required to leave the job that you have. You can trade part time, which can be after work or on weekends. In such a manner, you will be able to get experience without putting your entire life at risk. The other prudent thing to do is to invest part of your income in long-term crypto. E.g. you can choose and deposit 10 or 20 percent of your monthly earnings into coins such as Bitcoin or Ethereum. This is the best way to eliminate stress since you do not trade every day, but eventually, your investment increases.
When you are still contemplating that you want to leave the job, there are things that you need to know. You have to develop good crypto knowledge. Do not hurry since social media showed it to be a breeze. Get familiar with technical analysis, fundamental analysis and risk management. You also have to save up emergency money that would at least pay your living expenses in six months, before you will fully have to rely on trading.
Exercise yourself by working part time for one or two years. When you can make a profit regularly and without stress, then you can think in terms of whether you can go full time. And even when you go full time, you must not rely solely on crypto. Have alternative means of earning money online such as freelancing, digital marketing or business. Crypto is one of your sources of income, not your lifeline.
Then is it time to make the jump and trade crypto on full-time? The frank reply is no, at any rate not in the short run. Crypto is a chance, but it is a huge risk as well. It is easy to ruin your finances by relying on it. It is a good idea to maintain your job, as you develop your trading skills, invest your salary little by little, and grow little by little until you are indeed ready. Financial freedom cannot be rushed at the end of the day. It arrives through patience, equilibrium, and prudence.
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