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How to Make Money Trading Cryptocurrency?

 April 20, 2023

By  Kyrie Mattos

Today, the Internet is flooded with various rumors and stories about the fabulous income opportunities that cryptocurrencies provide. For the most part, these are, at best, fiction, or even simply luring gullible users into the clutches of scammers. However, it is worth noting that cryptocurrencies give a really great chance to make good money, and only a few succeed. In this case, you need to open a crypto account.

What is crypto trading, how to make money on it, and, most importantly, how to increase your chances of successfully completing transactions?

What is crypto trading?

The term crypto trading came into use not so long ago, less than 10 years ago. The emergence of such a concept was facilitated by the emergence of cryptocurrencies and the ability to exchange them. In general terms, crypto trading is no different from the usual trading of traditional assets: precious metals, resources, company shares, or currencies.

It also has its own trading platforms, which are called crypto exchanges, by analogy with ordinary trading or stock exchanges. You can also sell or buy crypto assets, exchanging one type of coin for another. In the last couple of years, traditional exchanges like CME have even launched cryptocurrency futures.

But there are certain differences that allow, in principle, to make huge profits with the right approach. Profitability from crypto trading is many times higher than that in the case of traditional assets. On a crypto exchange, you can increase your deposit several times in a few hours. Of course, this does not happen every day, but it is quite realistic to have a stable profit of 10-20% per month.

The difference between traditional and crypto exchanges

What is the difference between trading on a cryptocurrency exchange and a traditional one?

  1. Trading mode 24/7. If ordinary markets work with weekends and at certain times, then trading in cryptocurrency does not stop for a second;
  2. Great volatility. For cryptocurrencies, there are frequent cases of both multiple growths and fall over a short period of time – this opens up excellent opportunities for making money on the difference in buying and selling rates. While on a regular exchange, in the event of a sharp change in the price of an asset, trading on it is suspended, on a crypto exchange, everything is given over to the power of the market;
  3. Legal uncertainty. In most countries of the world, official bodies still cannot decide on the legal status of cryptocurrencies, so there are no restrictions on trading them. This has its advantages and disadvantages because you are poorly protected from fraud in this area;
  4. Anonymity. Most often, to conduct trading operations on a crypto exchange, you just need to create an account and deposit funds, you do not need to disclose your identity;
  5. Possibility of choice.

In crypto trading, you are given the opportunity to choose any of the dozens of trading platforms around the world and any of the hundreds of cryptocurrencies hosted on them.

How to trade cryptocurrencies for beginners on the stock exchange?

In order to trade on a crypto exchange, beginners should first familiarize themselves with working tools that help monitor the situation on the market. You should also learn the basics of technical analysis, which is also used in trading conventional assets. True, in crypto trading, it does not work so accurately, but how one of the factors can influence the final decision when making a transaction?

It will not be superfluous to work with a small amount at first in order to understand what cryptocurrency trading is. Constantly monitor the information field for any news on the selected crypto assets.

Most likely, in the first months, you will work at a loss. Gradually, by trial and error, develop your trading strategy and your unique style, and hone your personal skills. Over time, you will begin to increasingly profit from completed transactions and, if you have the patience and money, go to a stable income with the help of crypto trading.

Beginner tips

If you decide to start trading cryptocurrencies on the exchange, then here are some tips to help you adapt at the first stage:

  • only work with the amount you can afford to lose. In crypto trading, as in principle, in ordinary trading, no one is immune from losses;
  • try to adhere to the following tactics: buy on a fall, sell on an increase;
  • do not try to make transactions at marginal prices. By waiting for the maximum or minimum value of an asset, you run the risk of not closing your orders at all;
  • if you see that the trading volume has fallen, go long. When there is no liquidity, it is better not to short;
  • diversify your investments. You should not keep all investments in one cryptocurrency;
  • remember and analyze your actions, and develop your strategy.

And the most important rule – is never to listen to advice from the exchange chat.

How to increase your chances of earning on crypto trading?

Without a doubt, the independent path to comprehending the secrets of crypto trading is difficult and contains many disappointments. But there is one way to reduce it at times. You have probably already seen various videos with forecasts from traders on YouTube, or you have come across articles from them.

Unfortunately, most authors most likely do not believe in the words they utter and do not act according to the strategies they present. How to find really worthwhile traders who successfully trade cryptocurrencies and can share their knowledge with others?

There is only one way to make sure that a trader is honest – it is to observe the transactions he makes online and track their impact on the number of his earnings.

However, it is always worth self-improvement in order to achieve certain success. After all, no one will do the work for you. Knowledge and practice will help you earn money and make you confident in your actions.

Kyrie Mattos


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