Generating $140/Day Trading Cryptocurrency in 2022: My Journey

Trading Strategy for Daily Profits: A Comprehensive Guide

Cryptocurrency trading can be a lucrative endeavor if approached with the right strategy. In this article, we will delve into a trading strategy that combines day trading and swing trading to generate consistent profits. We will explore the tools and platforms needed for successful trading, as well as provide insights into the best cryptocurrency to trade daily.

The Three Essential Components for Successful Trading

To implement this trading strategy, you will need three key components:

1. Crypto Exchange: Choose a reputable cryptocurrency exchange to execute your trades. In this article, we will be using kucoin as an example. KuCoin offers low trading fees and a wide selection of cryptocurrencies.

2. Trading View: Utilize the Trading View platform for technical analysis. While there is a free version available, subscribing to the paid version will provide access to additional indicators.

3. Lux Algo: Lux Algo is a paid indicator that integrates with Trading View. It provides buy and sell signals, as well as useful indicators like trend catchers and trend tracers.

Important Considerations Before Getting Started

Before diving into trading, it’s crucial to keep the following points in mind:

1. Start as an Investor: If you are new to trading, it is advisable to start as an investor first. Invest a small amount of money and gain an understanding of how the market behaves before transitioning to active trading.

2. Trade with a Small Portion of Your Portfolio: Avoid trading with your entire portfolio. Instead, allocate a small portion, such as 5-10%, for trading purposes. This approach helps manage emotions and reduces the risk of making irrational decisions.

3. Focus on Small and Consistent Gains: The goal of this trading strategy is not to make massive gains but to achieve consistent, small profits over time. By maintaining a high win rate, even small gains can accumulate significantly in a larger trading account.

4. Choose a Currency You Understand: Select one or two cryptocurrencies that you thoroughly understand and are willing to invest in for the long term. Study the past behavior of these currencies to help predict future performance.

Implementing the Trading Strategy

Now let’s dive into the step-by-step process of implementing this trading strategy:

1. Analyzing the Market: Use Trading View to analyze the market and identify potential trading opportunities. Look for cryptocurrencies that exhibit patterns and behaviors that align with your trading strategy.

2. Using the RSI Indicator: The Relative Strength Index (RSI) is a popular indicator for identifying overbought and oversold conditions. In this strategy, we aim to build a position when the RSI reaches 30 or below and sell when it approaches 70 or above.

3. Leveraging Lux Algo: Lux Algo provides buy and sell signals, as well as trend indicators. When the RSI reaches 30 and a buy signal is generated by Lux Algo, it’s an opportune time to enter a trade. Enter the trade in increments, such as 25% of your desired position size.

4. Managing Trades: Once you have entered a trade, monitor the market closely. Consider setting profit targets using the price range tool in Trading View. This allows you to lock in profits when the price reaches your desired level.

5. Utilizing Trend Tracer and Trend Catcher: Lux Algo’s Trend Tracer and Trend Catcher indicators can help determine the overall trend of a cryptocurrency. Use the Trend Tracer for swing trading on larger time frames, such as the four-hour chart. The Trend Catcher is useful for identifying trends on daily charts.

The Benefits of Using KuCoin as Your Crypto Exchange

KuCoin offers several advantages for cryptocurrency traders:

1. Wide Selection of Coins: KuCoin boasts over 600 different coins, providing traders with a diverse range of options.

2. Low Trading Fees: With a trading fee of only 0.1%, KuCoin offers one of the lowest fee structures in the industry. This allows traders to maximize their profits.

3. User-Friendly Interface: KuCoin’s desktop and mobile apps provide a seamless trading experience. The platform is intuitive and easy to navigate, making it suitable for both beginners and experienced traders.

4. 24/7 Customer Service: KuCoin provides round-the-clock customer support, ensuring that traders can seek assistance whenever needed.

5. Additional Features: KuCoin offers various features such as crypto lending and trading bots, providing traders with additional opportunities to earn and automate their trading strategies.

Frequently Asked Questions

1. Is this trading strategy suitable for beginners?

It is recommended for beginners to start as investors first and gain an understanding of the market before transitioning to active trading. This strategy requires some knowledge of technical analysis and trading principles.

2. How much of my portfolio should I allocate for trading?

It is advisable to allocate a small portion, such as 5-10%, of your portfolio for trading purposes. This helps manage risk and emotions associated with trading.

3. Can I connect my exchange account to Trading View?

No, most cryptocurrency exchanges do not support integration with Trading View. You will need to execute your trades separately through your exchange account while using Trading View for analysis.

4. How do I fund my KuCoin account?

You can fund your KuCoin account by sending stable coins or cryptocurrencies to your account address. KuCoin supports various deposit methods, including card payments and bank transfers.

5. Are there any risks associated with trading?

Trading involves risks, and it is important to trade responsibly. It is possible to incur losses, especially in volatile cryptocurrency markets. It is crucial to conduct thorough research, manage risk, and avoid making impulsive decisions.

In conclusion, implementing a well-defined trading strategy can lead to consistent profits in the cryptocurrency market. By combining day trading and swing trading techniques, utilizing tools like Trading View and Lux Algo, and trading on a reliable exchange like KuCoin, traders can increase their chances of success. Remember to trade responsibly, manage risk, and continuously educate yourself to stay ahead in this dynamic market.