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Financial freedom is the dream of nearly everyone. Something that just a few years ago seemed practically unattainable by the average Joe has today become somewhat more realistic thanks to the power of cryptocurrency.

After getting introduced to the concept of crypto and learning how to buy Bitcoin most people quickly start to trade their coins in hopes of making more profit. For most, there is not a strategy – just buying into the hype and selling when there is panic. As a result, most people lose money in the market.

However, there is a group of people that have managed to find the golden lining between trading, earning, and completely living off their crypto profits. While this group is small, it is certainly possible to attain this level with consistency and determination. And in this article, we outline exactly how they do it.

Small amounts compounded

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It may be hard to predict a 30% gain on a particular cryptocurrency, but a 3% seems more reasonable. A much-awaited announcement, maybe? Or is it rather a new hype-wave building over Twitter? The reasons may be many but, usually, a 2-5% gain is predictable simply by following charting patterns or exploring the market sentiment.

At that point, you might want to look into trading with leverage. Note that this practice is extremely risky but increases your odds of earning big when betting on small percentage movements.

Here is an example: If you trade 100$ on spot markets, a 3% gain would give you 3$. If you now take the same trade with a 10x leverage, suddenly your 3$ becomes 30$ and so forth. Leveraged trades can go up to x125 but are extremely risky since a potential loss would also multiply by the added margin level.

Even when trading in spot markets, however, your profits can compound. As your portfolio grows, your entries will grow as well. And with higher entries, you have the potential to earn more money.

Key takeaway: Always take profits when you feel good about your trade and try not to bet on large money moves.

Trading a psychological warfare

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Do not get scared by the title, just recognize that you need strong nerves and emotional control when entering the crypto market. Obviously, this is not the only skill you should have, as knowledge of charting and market observation are a must too.

But here is the most important point we want to make – emotional people tend to lose money when trading.

Markets are always unpredictable and risky. Therefore every technical analyst always ends his articles with “This does not constitute financial advice”. Truth is, no one knows where the market is headed, and you will need to keep this into consideration when trading.

Key takeaway: After learning everything there is to know about trading, make sure you self-examine your response to different stressful situations. Understand that logic needs to overpower excitement or panic and act accordingly when making trading decisions.

Financial freedom is for the patient

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Most traders try to perform multiple trades per day, especially when they are having a positive streak. But this is not always the best thing to do. You see, if we take some of the most popular cryptocurrencies as an example (BTC or ETH), chances are that you would have made the most profit by simply holding onto them from the moment you bought them.

This is where HODL comes from and has increased in popularity. It simply refers to people who buy and hold onto their coins until they increase in value enough for them to sell

Once you sense that a bull market is approaching, you might be better off holding onto your funds instead of trading them. Once a bear market is approaching, you might consider trading to increase your positions. If the market is very unstable, you could just into a stable coin, which you will hold onto until the situation clears.

Key takeaway – Don’t trade too much, especially not in bull markets. Chances are that the profits you could make by simply holding onto your coins exceed the potential trading profits. To know more visit Paybis.

Switch to Stablecoins sooner or later

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Many crypto idealists believe that it is best to hold onto your coins forever. That is, frankly, a bad strategy when looking to achieve financial freedom. Apart from the sense of freedom, you should have at least some securities that your funds are safe.

This is where stable coins come in. When you are sensing that the peak of a bull market is coming, you might want to consider placing your funds into coins that maintain the value of the US dollar. Not only will that protect your funds from a potential market collapse but it will also help you make better investment decisions as the market goes sideways.

The most popular stable coins to invest in are USDT (Tether), GUSD (Gemini USD), and BUSD (Binance USD).

Once you have a respectable amount of money stored in Stable coins, you can consider your options.

Living off your profits

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Now that your funds have increased significantly and you have moved them into Stablecoins, you can have that money work for you and spend it as you see fit. The best way to go about this is by Staking your Stablecoins (or putting them into a savings account) for a number of days (usually 7 to 30) and earning high interest as a reward.

As soon as that reward is received, you will have two options. Either reinvest it into cryptocurrencies you believe in or spend it through a cryptocurrency debit card. Binance recently released its very own cryptocurrency card, allowing people from all over the world to pay at POS stations and directly changing their crypto into cash.

And just like that, by earning interest staking, and spending it, you should be one step closer to financial freedom. Just keep doing it over and over until you find a better opportunity for new coins that interest you.

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