How to Make $120 per Day Trading Cryptocurrency on Binance with just $20

Introduction

Making money trading cryptocurrency every single day can be a profitable endeavor if you have a good working strategy. In order to achieve consistent profits, it is important to have a set of rules and a solid risk management plan. In this article, we will break down everything you need to know about making $100 legitimately trading cryptocurrency every single day.

Choosing the Right Cryptocurrency Pairs

The first step in making money trading cryptocurrency is choosing the right cryptocurrency pairs to trade. Coin Market Cap is a popular platform where you can find a wide range of cryptocurrencies from all over the world. Using the filter function, you can narrow down your search based on market cap.

It is recommended to focus on cryptocurrencies with a market cap ranging from $100 million to $500 million. This range indicates that there is a significant number of investors in the project, which can lead to potential upside or downside movements based on market sentiment. It is important to note that each cryptocurrency pair behaves differently, so it is best to focus on a select few rather than trading all available options.

Aligning with the Trend

When trading cryptocurrency, it is crucial to align with the trend of the market. This means trading in the direction of the trend, whether it is an uptrend or a downtrend. To determine the trend, you can use indicators such as the 50 exponential moving average (EMA).

If the price is trading below the 50 EMA, it signifies a downtrend. In this case, you would look for pullbacks and breaks of key levels to enter short positions. Conversely, if the price is trading above the 50 EMA, it signifies an uptrend. In this case, you would look for pullbacks and breaks of key levels to enter long positions.

Entry and Exit Strategies

For entry strategies, it is recommended to look for specific candlestick patterns that indicate a loss of momentum. For downtrends, a shooting star candle followed by a red candle can be a good entry signal. For uptrends, a shooting star candle followed by a green candle can be a good entry signal.

Stop-loss and take-profit levels are crucial for managing risk and maximizing profits. It is recommended to use the Average True Range (ATR) indicator to determine the appropriate levels. The ATR shows the average range of price movement, allowing you to set stop-loss and take-profit levels based on the volatility of the market.

Example Trades

Let’s take a look at some example trades to better understand the strategy. In a bearish scenario, where the price is trading below the 50 EMA, you would wait for a pullback and a break of key levels. Once these conditions are met, you can enter a short position. The stop-loss would be set at 1 ATR below the entry level, and the take-profit would be set at the next key support level.

In a bullish scenario, where the price is trading above the 50 EMA, you would wait for a pullback and a break of key levels. Once these conditions are met, you can enter a long position. The stop-loss would be set at 1 ATR below the entry level, and the take-profit would be set at the next key resistance level.

Conclusion

Trading cryptocurrency can be a profitable venture if you have a good strategy in place. By aligning with the trend, using specific entry and exit strategies, and managing risk with stop-loss and take-profit levels, you can increase your chances of making consistent profits. Remember to always do thorough research and analysis before entering any trades.

Frequently Asked Questions

Q: How many cryptocurrency pairs should I trade?

It is recommended to focus on a select few cryptocurrency pairs rather than trading all available options. This allows you to have a specific point of focus and better understand the behavior and correlation of each pair.

Q: What is the importance of trading volume?

Trading volume indicates the liquidity and popularity of a cryptocurrency pair. It is important to choose pairs with sufficient trading volume to ensure smooth execution of trades and to avoid slippage.

Q: How do I determine the appropriate stop-loss and take-profit levels?

The Average True Range (ATR) indicator can be used to determine the appropriate stop-loss and take-profit levels. The ATR shows the average range of price movement, allowing you to set levels based on the volatility of the market.

Q: How long should I hold a trade?

The duration of a trade can vary depending on market conditions and the specific strategy being used. Some trades may play out within a few hours, while others may take several days. It is important to have a clear exit strategy and to monitor the market closely to determine when to close a trade.

Q: Can I use leverage when trading cryptocurrency?

Yes, many cryptocurrency exchanges offer leverage trading options. However, it is important to use leverage responsibly and to understand the risks involved. High leverage can amplify both profits and losses, so it is crucial to have a solid risk management plan in place.