Disadvantage of depending on bitcoin as your only source of income/trade

[Hardyrobust]

depending on Bitcoin alone as your only source of income is really risky especially for daily needs. Bitcoin is good for long term value but bills, food, rent & emergencies cannot wait for the market to go up if Bitcoin is your only income you will be forced to sell even when the price is low & that defeats the purpose of holding. Having another business/job gives you breathing space, you can pay your expenses w/o touching your coins & instead of selling you can even buy more during dips. For me Bitcoin works best as a store of value or secondary income not the only pillar.

I don't see it as something that is possible to depend on bitcoin as a source of income. Before we think of starting to invest in bitcoin we should have a source of income because without having a source of income investing in bitcoin won't be that possible. Even if we have reach the fuck you status we're our bitcoin holdings is in good shape . There should still be need to have other sources of income or we can even start to diversify into other assets to secure our income from risk.

[SmartCharpa]

I believe every business one goes into is to make profit but as it is widely said two good heads are better than one, so owning two sources of incomes isn't a bad idea no one prays for loss or any unexpectancy but if any arises it should not reduce your market value, because you are built on one piller, depending on bitcoin mainly as your only source of income will make you constantly selling your coins to meet up your bills and basic daily human need but owning other businesses will enable you to buy more bitcoin and exercise more patience because your daily life challenges and bills will be taken care of by other businesses you do giving you more time to prolong and increase the rate/amount of your bitcoin, it will interest you that the more years passes by the more inflation becomes more fatal than ever and the only answer that will be left will be you brother that owns an atom of bitcoin because only you can receive or send huge money without anyone coming to break your home and taking you away in sunlight with any government badge, that aside I understand how important bitcoin is now that I want to convert everything I have to bitcoin.

Have you ever seen someone claim that their source of income is bitcoin investment? If you have see someone before, I haven’t seen anyone say that before, so Bitcoin investing is like saving money for the future, not something you will need it anytime soon. Bitcoin is not something you should rely on, which is why it is says that you should have a source of income where you can be comfortable with investing in Bitcoin.

However, I agree that everyone enters a business to make profit, whether in investment as well. Nobody wants a lose money, so you should have an income that help you to cover some expenses, because you may end up selling your investment if you don’t have other source of income, as the market operates on its own, not the way we expected it.

[Antotena]

depending on Bitcoin alone as your only source of income is really risky especially for daily needs. Bitcoin is good for long term value but bills, food, rent & emergencies cannot wait for the market to go up if Bitcoin is your only income you will be forced to sell even when the price is low & that defeats the purpose of holding. Having another business/job gives you breathing space, you can pay your expenses w/o touching your coins & instead of selling you can even buy more during dips. For me Bitcoin works best as a store of value or secondary income not the only pillar.

I don't see it as something that is possible to depend on bitcoin as a source of income. Before we think of starting to invest in bitcoin we should have a source of income because without having a source of income investing in bitcoin won't be that possible. Even if we have reach the fuck you status we're our bitcoin holdings is in good shape . There should still be need to have other sources of income or we can even start to diversify into other assets to secure our income from risk.

I don't think there is any serious person that depend on Bitcoin as source of income unless they do it the smart way. There are some earn yield on some centralized exchanges, instead of allowing your Bitcoin stay idle, they deposit this coin into the exchange and lock it as liquidity and in return the exchange gives them some APR when the Bitcoin is unlocked, if you are not doing this then there is nothing I think that can bring any source of income unless you hold and even this locking is risky.

If you are not trading Bitcoin that I will say you are doing the right thing, then there is nothing you can even do than hold the Bitcoin. Trading is even risky and you can lose your Bitcoin in the process of trying to look for quick profit. It's better you don't trade Bitcoin if you don't have what it takes to be a trader. I once lost everything on me because of trading, I was looking for daily bread after watching some YouTube videos, don't be like me.

[Issa56]

I don't see it as something that is possible to depend on bitcoin as a source of income. Before we think of starting to invest in bitcoin we should have a source of income because without having a source of income investing in bitcoin won't be that possible.

If you are investing in bitcoin, then there is no way you will be depending on only bitcoin investment for survival. If you are holding bitcoin, then you will have to be selling your bitcoin for survival, then it’s of no use investing in the first place since you going to be selling it back. and if you don’t have another source of income, you won’t be able to make money to invest in bitcoin. 

The only people that I know that do depend on bitcoin for survival are traders. I have seen some people that don’t have other source of income than trading, I will say it’s completely a bad idea, depending on trading doesn’t make any sense, we are suppose to have multiple sources of income, incase if anything happens to one, we will be able to fall back, but if you depend on trading alone, if anything happens, then you going to be in trouble.

[terrific]

If you are not trading Bitcoin that I will say you are doing the right thing, then there is nothing you can even do than hold the Bitcoin. Trading is even risky and you can lose your Bitcoin in the process of trying to look for quick profit. It's better you don't trade Bitcoin if you don't have what it takes to be a trader. I once lost everything on me because of trading, I was looking for daily bread after watching some YouTube videos, don't be like me.

I still don't understand those folks that have been using their bitcoin for their trades. I know they can be profitable traders.
But you're putting the bitcoins you hold at risk by losing them with those trades.
You'll never know if the pairs you've chosen by it will be profitable. While it might be fine with a few stable coins.
Still, you'll have no idea when the market is going to have that surprising dip and will be against to your trade.

[Findingnemo]

People who say bitcoin is my source of income need to eloborate, bitcoin is money so money can't be a job because one needs to do something to make money so either they do trading which is a career, or mining or simply bought bitcoin with a lump sump and now using systematic withdrawal to pay their bills on the monthly basis.

[uneng]

People who say bitcoin is my source of income need to eloborate, bitcoin is money so money can't be a job because one needs to do something to make money so either they do trading which is a career, or mining or simply bought bitcoin with a lump sump and now using systematic withdrawal to pay their bills on the monthly basis.

To live on Bitcoin is just a catch phrase used by people who don't really understand how this industry works for real. It's a misconception which excites newbies, because they really think to be able to make their main income from Bitcoin, just by acquiring a portion of it once and selling it slowly along the time, or by doing day trading. Bitcoin is just one investment people should adopt among many other alternatives.

It's not advisable to rely on Bitcoin for a living due to its volatility and unpredictability. It works great as investment on long run and it does return a decent profit percentage over your initial funds, but we never know when we are going to profit from it, so it's necessary to have stable sources of income, like from a regular job or from managing a solid business which adds value to society.

[ThemePen]

People who say bitcoin is my source of income need to eloborate, bitcoin is money so money can't be a job because one needs to do something to make money so either they do trading which is a career, or mining or simply bought bitcoin with a lump sump and now using systematic withdrawal to pay their bills on the monthly basis.

Well, you are quite right that Bitcoin is not employer, but item, which is that one needs to take certain action, or verb, to change that value into money. Now people no longer just trade, but use Bitcoin to run high speed payment paths as form of Bot Business where they watch over AI bots that do tiny tasks 24/7 or price trade in 24/7 to get instant pay. Others are so-called digital landlords who make annual set profit of between 5 and 8 percent by locking their Bitcoin with Bitcoin Layer 2s such as Stacks or Babylon without having to sell first Bitcoin. Also, huge change in short term job market has included nearly 23 percent of global workers using websites such as Braintrust, LaborX, or CryptoTask to do normal job in coding or design, and skipping bank to be paid their entire pay in Bitcoin. At end, no matter if you are a miner keeping machines, or worker selling work, Bitcoin is tool that carries your money, although actual money is still your use, risk, or hard work.

[X-ray]

People who say bitcoin is my source of income need to eloborate, bitcoin is money so money can't be a job because one needs to do something to make money so either they do trading which is a career, or mining or simply bought bitcoin with a lump sump and now using systematic withdrawal to pay their bills on the monthly basis.

That's true and the sentences itself doesn't make sense. Bitcoin is only valid as a source of income if somebody is running a miner and they got bitcoin as a reward to solve block. In that case, the miner literally got paid in bitcoin for helping to run bitcoin. Bitcoin, in that scenario become source of income.

Getting paid in bitcoin for works like freelancing or even become a blockchain developer is the better word to describe it.

[GiftedMAN]

People who say bitcoin is my source of income need to eloborate, bitcoin is money so money can't be a job because one needs to do something to make money so either they do trading which is a career, or mining or simply bought bitcoin with a lump sump and now using systematic withdrawal to pay their bills on the monthly basis.

But either ways, Bitcoin could still indirectly be considered as a source of income, but the question should be how reliable is it as a source of income to you. For those who are trading, are you that good that you actually manage to generate good income from it consistently or is your profit epileptic. In my opinion, I believe people can only say that Bitcoin is a source of income when they’ve accumulated enough Bitcoin overtime and have reached a state of over accumulation and are now strategically withdrawing from it either price or time based.

[Findingnemo]

People who say bitcoin is my source of income need to eloborate, bitcoin is money so money can't be a job because one needs to do something to make money so either they do trading which is a career, or mining or simply bought bitcoin with a lump sump and now using systematic withdrawal to pay their bills on the monthly basis.

But either ways, Bitcoin could still indirectly be considered as a source of income, but the question should be how reliable is it as a source of income to you. For those who are trading, are you that good that you actually manage to generate good income from it consistently or is your profit epileptic. In my opinion, I believe people can only say that Bitcoin is a source of income when they’ve accumulated enough Bitcoin overtime and have reached a state of over accumulation and are now strategically withdrawing from it either price or time based.

No matter how good the trading skills are, making consistent profit is impossible.

Miners require heavy capital so we can assume that they are not going to need this income to pay their bills.

And to accumulate bitcoin in a lump sum then it is going to require a huge capital again so they can plan their early retirement means they already reached the financial independence and no need to worry about their month revenu source.

[Obim34]

But either ways, Bitcoin could still indirectly be considered as a source of income, but the question should be how reliable is it as a source of income to you. For those who are trading, are you that good that you actually manage to generate good income from it consistently or is your profit epileptic. In my opinion, I believe people can only say that Bitcoin is a source of income when they’ve accumulated enough Bitcoin overtime and have reached a state of over accumulation and are now strategically withdrawing from it either price or time based.

Bitcoin is an alternate source of income, for traders, profit comes time to time not always. Based on pattern we can relate trading to have similar disadvantage as gambling, we understand that relying on them as a source of income poses high risk, that's makes it not an ideal choice.

Whoever, accumulated Bitcoin as a retirement plan or after a long tenor will eventually redirect part of his profits into something different to produce a stable income, no investor will rely their standard of living directly from the profits they make from their investment.

[AbuBhakar]

That's true and the sentences itself doesn't make sense. Bitcoin is only valid as a source of income if somebody is running a miner and they got bitcoin as a reward to solve block. In that case, the miner literally got paid in bitcoin for helping to run bitcoin. Bitcoin, in that scenario become source of income.

Getting paid in bitcoin for works like freelancing or even become a blockchain developer is the better word to describe it.

Actually, that's the best option, a service that pays directly with Bitcoin. You can also ask for fiat and then convert half to bitcoin. That's if you want to save Bitcoin for long-term investment. But if it's direct trading, it seems like it's hard to get because you don't always win, so you can't rely on your income from trading to make a living. There are traders who do this as a side hustle, but they still have a main job that they do to fund their daily needs, and if they make any income from trading, they use it for other expenses.

[Ahli38]

I believe every business one goes into is to make profit but as it is widely said two good heads are better than one, so owning two sources of incomes isn't a bad idea no one prays for loss or any unexpectancy but if any arises it should not reduce your market value, because you are built on one piller, depending on bitcoin mainly as your only source of income will make you constantly selling your coins to meet up your bills and basic daily human need but owning other businesses will enable you to buy more bitcoin and exercise more patience because your daily life challenges and bills will be taken care of by other businesses you do giving you more time to prolong and increase the rate/amount of your bitcoin, it will interest you that the more years passes by the more inflation becomes more fatal than ever and the only answer that will be left will be you brother that owns an atom of bitcoin because only you can receive or send huge money without anyone coming to break your home and taking you away in sunlight with any government badge, that aside I understand how important bitcoin is now that I want to convert everything I have to bitcoin.

Your idea to convert all your assets into Bitcoin is excellent. However you must consider your source of income.  And you should not neglect your main job. You cannot rely on Bitcoin as your sole source of income. Even if you trade and profit from market price increases or decreases you cannot guarantee a stable source of income. You still need to engage in other businesses to provide for your daily needs. The Bitcoin you have should be saved for your future needs. And you can accumulate Bitcoin with part of the income from other businesses you run. Other than that many people also think that trading with leverage can be a source of income. But that is wrong as it will only increase your risk of loss because many people fail at it. The most correct way to rely on Bitcoin is to accumulate it in the long term. And you will get profits or even success from it all.

[SilverCryptoBullet]

Your idea to convert all your assets into Bitcoin is excellent. However you must consider your source of income.  And you should not neglect your main job. You cannot rely on Bitcoin as your sole source of income. Even if you trade and profit from market price increases or decreases you cannot guarantee a stable source of income. You still need to engage in other businesses to provide for your daily needs. The Bitcoin you have should be saved for your future needs. And you can accumulate Bitcoin with part of the income from other businesses you run.

Even I am a Bitcoin investor, I love Bitcoin and believe that it is a very good investment asset in long term, I don't consider converting all assets into Bitcoin is a good idea. It is a risky strategy as Bitcoin is not risk-free and even Bitcoin will continue to grown in value and price, it won't mean you will be able to keep your bitcoin safely. If you lose your bitcoins in any incident, no matter how much one bitcoin costs in the future, it won't help you getting richer.

It's one risk for consideration and by storing all your money in bitcoin, you might lose it all some day, not because bitcoin price falls to $0 but by any hack or fund loss.

Other than that many people also think that trading with leverage can be a source of income. But that is wrong as it will only increase your risk of loss because many people fail at it. The most correct way to rely on Bitcoin is to accumulate it in the long term. And you will get profits or even success from it all.

Trading is risky and trading with leverages is more dangerous, even nearly similar to gamble. Investment is the only thing people should do with their bitcoin as it almost guarantees very good profit with conditions that they must store their bitcoins well and safe, then hold it a long time enough.

[purple_sparkles]

I think it’s unwise to place all your bets on just one thing, there should always be a backup, something to rely on in case of unforeseen circumstances, so that you can still cover your basic needs. I know that for some people trading is their main job, and fully immersing yourself in it does increase the chances of becoming a stronger expert compared to someone who constantly spreads their focus. Still, relying solely on bitcoin trading is probably not the best idea.

[qwertyup23]

<..snip..>
The answer is not some great strategy. It is just: do not put yourself into a position where one bad week screws everything up. Keep some fiat to have a back-up for a couple of months expenses. Do not convert everything to Bitcoin, as tempting as this may be when inflation is eating your savings.

You basically summed-up everything that needs to be known by OP with this statement.

The problem with HODLing BTC and making it as your sole source of income are the risks associated with it. Like you mentioned, if you are in a position where you rely on a good week on the price of BTC without accounting its volatility, then you're basically putting yourself at trouble with this strategy.

I truly commend on how you phrased everything on your comment as everyone needs to know what you summarized here!

Because the objective is not to be the most convicted Bitcoin hodler. The goal is to be still here in five years, still hodling, still participating, still being able to make decisions from a place of calm and not desperation. That is harder than it sounds. But, it is probably the only thing that actually works long term.

Again, you are definitely correct here.

To add on what you have extensively discussed, consistency will always be the key on investments. But always remember that consistency means not sacrificing your main income stream. If you put all eggs in one basket and they fall, what are you left with? Like what you mentioned above- diversification would be the answer here.

[MusaMohamed]

The problem with HODLing BTC and making it as your sole source of income are the risks associated with it. Like you mentioned, if you are in a position where you rely on a good week on the price of BTC without accounting its volatility, then you're basically putting yourself at trouble with this strategy.

Holding Bitcoin will help holders having profit, even mass profit but it takes a quite long time. Bitcoin holders can not get profit too quickly as if they buy bitcoin today, they will have x2 profit next week, so it is one of risk of relying on Bitcoin investment and its profit as the only source of income.

As analyzed with Bitcoin history, price won't always rise continuously with time and there are even bearish months, so Bitcoin portfolio can have negative ROI in short term or even medium term like some months, so it is dangerous to live your life with only income from your Bitcoin investment.

To add on what you have extensively discussed, consistency will always be the key on investments. But always remember that consistency means not sacrificing your main income stream. If you put all eggs in one basket and they fall, what are you left with? Like what you mentioned above- diversification would be the answer here.

Bitcoin investors must have good finance for their livelihood and spendings so that they will never need to sell bitcoins each month for monthly bills. It has no guarantee that Bitcoin can give you positive ROI each month so that you can take profit partially and use profit for paying bills monthly. When Bitcoin has temporary negative ROI for your portfolio, you will need to use money from other sources for paying your bills.

[Nahl]

If you don't have money it's impossible to having bitcoin because we all know to buy bitcoin money is important thing that's why to accumulate bitcoin asset having jobs is necessary and actually make bitcoin as source of income is good too but so far this way called bitcoin trading but it's hard to gets profit even experience trading have suffering to lost but the other thing probably can be considered that you can make bitcoin as valuable asset but when you were decide to became an the investor then to ensure you will never sell all of your bitcoin certainly you will need other source of income and only make bitcoin as investment asset

[Cgrexp]

Every trader has a goal of how to make a profit, but relying on Bitcoin for a living is risky. It is also difficult to hold on to it in the long term because you may be forced to sell if the market is volatile. A person can only hold on to it for a long time if his investment is funded by the remaining money after meeting basic expenses. Therefore, it is a reasonable way to accumulate Bitcoin continuously from alternative sources of income rather than relying entirely on Bitcoin.