How to trade cryptocurrency and make profit

How to trade cryptocurrency and make profit

How to make money buying and selling cryptocurrency, make $100 a day trading cryptocurrency, How to trade cryptocurrency and make profit, cryptocurrency trading for beginners, how to trade bitcoin and make a profit, how to earn daily from cryptocurrency, how to make money with cryptocurrency 2022-23

We all know that cryptocurrency is very much in trend right now. So we can make a good profit by trading in cryptocurrency. Today we will see how to trade in cryptocurrency and make profit good profit. 

How to make money buying and selling cryptocurrency

In the same way that you can make money by buying and selling stocks in the stock market, you can also make a profit by buying and selling crypto in crypto. For example – you bought a cryptocurrency coin for $100 and after a few days it became $105, and if you sell that cryptocurrency coin then $105-$100 = $5 is your profit. Here is a simple example of how you can make a profit by buying and selling cryptocurrency.

Types of Cryptocurrency trading for beginners  

There are Three types of cryptocurrency trading.

1 Spot Trading 

२ Futures Trading 

3 Options Trading 

1 Spot Trading.

Spot trading means that you can buy and sell crypto with as much capital as you have.

For example-

If you have $100 capital and the price of a cryptocurrency coin is $10 then you can buy 10 coins in your capital. Cryptocurrency long-term investment and swing trading are done on the spot trading.

2 Futures Trading 

The second type of cryptocurrency trading is futures trading. The biggest difference between spot trading and futures trading is the Margin (leverage). Let us understand what is margin trading with an example.

If we have $100 capital And the price of a crypto coin is $10 which means we can buy 10 coins in that amount of capital.

but in futures trading (Binance) we get Margin up to 100x.

How to trade cryptocurrency and make a profit
How to trade cryptocurrency and make a profit

This means that if you can buy 10 coins in $100 capitals, you can buy 1000 coins using $10,000 capitals with a margin of 100x.

$10,000 / 10 = 1000. 

Margin means the crypto exchange we use allows us to trade up to 100x of our capital. If our trade is successful then our profit is also according to our margin. 

For Example-

We buy a $10 price coin using a 100x margin with a capital us $100. and if that coin will increase by $2 then our profit will be 1000X$2= $2000. You will get ultimate profit using Margin. 

To make the trade-in Cryptocurrency Futures trading we must have an account in Binance and Coin DCX. Open a free account in

Disadvantages of margin trading

But some major and big drawbacks are also to margin trading.

Like if our trade goes wrong then we will face a huge loss according to our margin. 

For Example-

We buy a $10 price coin and that coin price will go down by $2 then we will get a loss of $2000. But how this will happen if we have only $100 capital then how can we get a loss of $2000, the answer is if our trade goes wrong and our loss will come to our capital price of $100, our Exchange broker will liquidate our position without our permission. So don’t use this kind of margin to stop losses in trading. 

How to earn daily from cryptocurrency in futures trading

So for daily and regular income from cryptocurrency, we must have to follow some steps and strategies. First of all don’t use a margin of more than 5x for starting period, once we will get knowledge and experience then we will increase our margin size.

After finalizing the margin we must set our Risk to Reward Ratio which is called RRR. 

For Example-

If we are taking a 2$ risk for our trade means we are to take a $2 loss if our trade goes against us. Then What is our Target?. If we are ready to take a risk of $2 then we should set our target at least $6. So our Risk to Reward will be 1:3 this is how we can save our capital and make money from cryptocurrency buying and selling.

How make $100 a day trading cryptocurrency

We all want to set some figures that we want to earn daily. To make daily $100 from cryptocurrency depends on how much capital we are using. If we have $100 capital then starting from the first day, this is very difficult to make $100 per day using the same safe and risk-free strategies and setups. 

If we are ready to take drawdown on our capital by taking a margin like 50 to 75x then maybe we will earn $100 per day but that is next to impossible. So better to take a low margin and increase our capital by making good profits with more than a 1:4 Risk to Reward Ratio.

Making consistent profit with good RRR in some of the days we will definitely earn huge profit more than our expectation. The market will definitely pay us if we follow discipline we will surely earn daily income like $100 per day. 

How to make money buying and selling cryptocurrency

Everyone knows we will make money buying cryptocurrencies, but in cryptocurrency futures trading will make money by selling cryptocurrency. If we think a one-off coin will go down in the upcoming time we will sell that coin without buying first.

For example-

If we think the $10 coin price will do down in the upcoming time we will sell that coin at $10 and after the price will touch $8 we can square off our position, which means we will make a profit of $2. 

For Future trading, we must have an account in BINANCE. Binance is the best platform to trade in Cryptocurrency futures. 

As a trade, we all know when the market goes upside, goes slow, and takes pauses. But when the market goes downside market sleeps very fast so most traders make a huge profit by selling cryptocurrencies. 

Open Free account in Binance and Coin DCX.

Read more

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Q. Types of Cryptocurrency trading for beginners 

Ans. There are Three types of cryptocurrency trading.
1 Spot Trading 
२ Futures Trading 
3 Options Trading 

Q. How much margin we will get in Binance

Ans. We will get up to 100x margin in Binance Future trade

Q. Disadvantages of margin trading

Ans. Some major and big drawbacks are also to margin trading. Like if our trade goes wrong then we will face a huge loss according to our margin.

Q. How to earn daily from cryptocurrency in futures trading

Ans. So for daily and regular income from cryptocurrency, we must have to follow some steps and strategies.

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