Easy Cryptocurrency Trading Strategy for Earning $100 per Day

Introduction

Hi everyone! In this video, I’ll be sharing a simple crypto trading strategy that can help you make hundreds of dollars per day. The success of this strategy depends on your capital, but I’ll guide you through the setup process, explain which technical indicators to use, and show you how to use them effectively. Additionally, I’ll provide steps for taking profits and share some additional tips that can benefit all traders. So, make sure to watch this video in its entirety to not miss any important information.

But before we dive into the strategy, let me introduce myself. My name is Femi Alania, and I create videos on personal finance, cryptocurrencies, the stock market, and making money online. If you enjoy this type of content, please subscribe to my YouTube channel and like this video. Thank you!

Setting Up the Strategy

For this tutorial, I’ll be using binance as the trading platform. Whether you’re using the Binance app or website, you can follow along. If you don’t have a Binance account, you can register using the link provided in the video description to get a 5% discount on your trading fees. However, you can also use other crypto trading apps like Coin, so feel free to choose the platform that suits you best.

To begin, navigate to the futures trading page on Binance. In this video, I’ll be using the eth/USDT perpetual contract for the strategy demonstration. Remember, this strategy can be applied to both futures trading and spot trading, but I’ll focus on futures trading for this tutorial. If you’re more comfortable with spot trading, you can still use this strategy. And if you’re interested in trying out futures trading, this strategy can work for you too.

The Scalping Strategy

The strategy I’ll be sharing is called the scalping strategy. It involves taking advantage of small market moves repeatedly to generate profits. With this strategy, you don’t hold your positions for a long time. Instead, you open and close trades within minutes to capture small profits. The beauty of scalping is that you can take multiple trades in a day if you choose to do so.

However, it’s important to note that scalping requires time, effort, practice, and a significant capital investment to make substantial profits. As mentioned earlier, to make $100 per day with this strategy, you would need a capital of around $2,000 to $5,000. If you have less than $1,000 or $500, you can still make profits, but they will be smaller. Keep this in mind as you implement the strategy.

One advantage of the scalping strategy is that it minimizes the risk of losing large amounts of money since you’re not holding trades for extended periods. However, it doesn’t guarantee that you won’t experience losses. It’s essential to understand these aspects of the strategy before proceeding.

Using Technical Indicators

Now let’s dive into the technical indicators you’ll need for this strategy. The first indicator is the moving average (MA). To select this indicator on Binance, click on the indicator sign and choose “Moving Average.” Set the parameters to 5, 8, and 13. You can choose any colors for the lines, but make sure they are distinct for easy differentiation. Once you’ve set up the moving average indicator, save the settings.

The moving average indicator helps identify trends in the market. When the shortest MA line (in this case, the red line) is above the other two lines, it indicates an upward trend. Conversely, when the red line is below the other two lines, it suggests a downward trend. Remember to consider the timeframe you’re using, which, in this case, is the 5-minute timeframe.

The second indicator is the Moving Average Convergence Divergence (MACD). To add this indicator on Binance, click on the indicator sign and select “MACD.” The MACD consists of two lines: the purple line (MACD line) and the green line (signal line). When the MACD line is above the signal line, it indicates an upward trend. Conversely, when the MACD line is below the signal line, it suggests a downward trend.

Combining Indicators for Trading

It’s important to note that relying on a single indicator may not provide accurate signals. It’s recommended to combine multiple indicators to increase the reliability of your trading decisions. By combining the moving average and MACD indicators, you can make more informed trading choices.

For example, when both the moving average and MACD indicators show an upward trend, it’s an opportune time to enter the market. Conversely, when both indicators indicate a downward trend, it may be a good time to short the market. Always remember to take advantage of small moves in the market and avoid holding positions for too long.

Key Points to Remember

– The scalping strategy involves taking advantage of small market moves repeatedly.
– Use the 1 to 15-minute timeframe for this strategy, with 5 minutes being the recommended timeframe.
– Combine multiple indicators, such as the moving average and MACD, for more accurate trading signals.
– Be patient and wait for the perfect time to enter the market. Rushing into trades can lead to poor decision-making.
– Avoid holding positions for too long, as the scalping strategy focuses on capturing small profits quickly.
– Remember that while the scalping strategy minimizes the risk of large losses, losses can still occur.
– Consider the capital you have available, as larger capital investments can lead to higher profits.

Frequently Asked Questions

Q: Can I use this strategy with a small capital?

A: Yes, you can still use this strategy with a small capital, but the profits will be smaller. To make larger profits, a larger capital investment is recommended.

Q: How many trades can I take in a day using the scalping strategy?

A: With the scalping strategy, you can take as many trades as you like in a day. However, it’s important to focus on quality trades rather than quantity.

Q: Are there other strategies and indicators I can use for crypto trading?

A: Yes, there are numerous strategies and indicators available for crypto trading. The scalping strategy and the moving average and MACD indicators are just a few examples. Consider exploring other strategies and indicators to diversify your trading approach.

Q: How can I learn more about crypto trading?

A: If you’re interested in expanding your knowledge of crypto trading, you can enroll in the Complete Crypto Trading Course for Beginners 2022. This course covers various trading strategies, technical analysis, risk management, and ways to generate signals. With lifetime access to the course, you can continue learning and refining your trading skills over time.

Conclusion

The scalping strategy can be a profitable approach to crypto trading if implemented correctly. By combining technical indicators like the moving average and MACD, you can increase the accuracy of your trading decisions. Remember to be patient, take advantage of small market moves, and avoid holding positions for too long. Additionally, consider the capital you have available and adjust your profit expectations accordingly. Happy trading!