Welcome to Crypto Trust Point, the best place to find free and reliable information on Bitcoin and Altcoin trading online. There are so many scams in Bitcoin trading so you need a source of information that you can trust, all of the sites that we use for our trading are 100% trustworthy and that’s easily verifiable online.
You’ve probably heard stories of Bitcoin millionaires – regular, working class people who turned one month’s paycheck into a fortune that will keep them from ever having to work again. This, here, is a free guide on trading cryptocurrency altcoins so that you can make profits from your trading and gain from your monthly paychecks.
The prices of crypto coins are very volatile and trading in cryptocurrency is all about taking advantage of this volatility. With the help of our tips, you can set up a crypto trading bot for trading currencies. We will tell you about how you can set up a bot that can buy cryptocurrencies when the prices are low and sell them when the prices are high, that will help you in earning a gain of about 3-4% on a daily basis (returns can be calculated with the help of Compound Daily). Trading crypto currencies is a better option than holding them back and waiting for their values to increase. This way, we can have a greater rate of return when their value increases and this would be a smarter investment.
Here is how you can make a considerable amount of money by trading cryptocurrency :
- There are many types of cryptocurrencies, but the first thing that you are going to need is a bitcoin, as this is the main currency and chances of increase in value are the highest in bitcoins. Having bitcoin as the base currency means you are holding back some to yourself and after selling off all your positions, you will have 100% Bitcoins. Bitcoins (BTC) can be easily bought through Coinbase with the help of your card or bank account, and an initial amount of about $150 would be enough to start a trade, which will give you enough bitcoins to have around ten small positions which is a lot better than having just one large position, and as the saying goes, we should never put all our eggs in one basket.
- The next step is to send your BTC to your cryptocurrency exchange after you have enough Bitcoins in your BTC. By far, the best cryptocurrency exchange is Binance, as they have the best coins, and a much lower fees (although the bot will do most of the work). Once you set up a Binance account, you need to get your BTC wallet address from Binance and use that on Coinbase. Sending your BTC from Coinbase to Binance is quite easy. You just have to use the ‘send’ option in your Coinbase BTC wallet and enter the Binance BTC wallet address there.
- Now that you know the accounts that you need for trading, the next thing that you are going to need is your trading bot. Profit Trailer is the best bot by far, as it is fast and has all the best features. Speed is an important factor, as most bots are slow and this could lead to a malfunction while trading which can land you in a lot of trouble. You can familiarize yourself with the all the sittings with the help of the guide provided by them on their Wiki.
- Before you start the bot, it is very important for you to understand the indicators and spend a good amount of time on it as it is a major part of trading success. The best way to learn about indicators is to use TradingView, which is free for basic use. You can pick any coin from there and learn about some of its indicators, such as RSI, MACD, SMA, EMA, Bollinger Bands or any other indicators that you’d like to use and study how its behavior changes with the change in its settings. Ultimately, what you have to do is, get your indicator firing when the price is low and high, so that you can use the low one to buy, and the high one to sell. For example, for RSI, the indicator is directly proportional to the price, that is, if the indicator is low, the price is generally low and vice versa. Hence, it makes sense to buy when it’s low and sell when it’s high. For indicators like EMA, SMA, or MACD, you would want the lines to cross when the price is low, which would act as a ‘buy’ signal for the bot. But, it is not so important for selling with any indicator, as Profit Trailer can use a trailing selling mode, where it will trace the price and sell it off when the value reaches towards its peak, which makes it the best way of selling. Profit Trailer comes with some pre-installed settings that work quite well, and studying about these indicators is very much worthwhile. You can understand its working and even implement some of your own settings instead of using the regular ones that everyone else works with. This way you’re less likely to run into volume problems (unless you are trading in large amounts).
- Now that you’ve understood indicators, you need to understand why it is good to have lots of small open positions instead of a single large one. It may seem like a single large position would be more effective and give a much larger profit on a single trade, but things don’t work like that. Investing requires security, and having several small positions gives you just that. The fact is that in crypto trading, (or any other trading for that matter) you’re never going to be 100% successful. Everything comes down to honing those settings, so that you can get as much success as possible. But, there will always be an unlucky trade, where you buy a cryptocurrency and then the price sinks horribly, leaving you with a large loss, and you will have to wait for a long time for it to be sold at a profit. Therefore, having a set of, say, ten open positions (so setting the bot to use 10% of your balance for each trade), would mean that even if you do have one of those unlucky trades, it won’t end up being a huge loss, as you will have nine other trades to sell off and you can easily wait for that one bad trade to turn into a good deal.
- Another great strategy that you can use while trading altcoins is to use DCA (Dollar Cost Averaging). DCA can make it easier to sell your coins when the price drops (which it often does before rising). What exactly it does is, it waits until the price drops after you have bought a currency, and buys it again at the current lower prices, so that your average price for the total amount of coins that you have is now lower, and the price does not need to rise as much for you to make a profit. Although it is a bit costly, DCA can be used several times, which guarantees that you will end up earning profit almost every time.
- Then, another very important part of trading cryptocurrency is your coin selection. It is not wise to trade all the coins and some are a lot better for trading than the others. For example, the coins with the most value and volume are much more reliable (and not as volatile), so they are much more safer in terms of big drops, which is possible in case of cheap coins. Volatility depends upon your strategy. You just have to be sure that you’re aware of the fact that trading cheap coins is a little risky, because even if you do trade cheap coins, and one of them crashes, it can be a very big drop and may even take a long time to recover. Therefore, it is wiser to trade better coins (Profit Trailer has settings for this so minimum price and volume).
- Once you understand all of the above points, you can start Profit Trailer and set it up using your Binance API keys and other settings that you need (see their Wiki for reference). It can run on your local computer (you can even run it on a VPS if you’d like), and open in your web browser, so that you can keep a track of how all your trades and stats are doing (your current profit or loss), and you can easily change the settings from your browser. A good thing in Profit Trailer is that it also has a test mode where you can run it with your settings to see how it does, before using your real BTC.
- Once you start trading and earn a fair share of profits, all you need is a withdrawal plan. If you want your total investment to grow nicely, then you should withdraw only a small amount of money every month, which would help your returns to grow very well.
Making large amounts of profit with a small amount of initial investment by online trading of bitcoins and altcoins is quite simple, and almost anyone with the right knowledge can do it. The only challenge in trading cryptocurrency is to learn and understand the indicators, which shouldn’t be an ordeal, since the software comes with inbuilt settings that work really well and helps you in making large profits by trading crypto coins.
So we have made this crypto trading guide for free so that normal people can make huge profits from trading, all sites and references given here are completely safe so you can trust those totally (they are all huge companies and you can easily verify their status online) so safe trading is assured here (there are so many scams in crypto that you have to be VERY careful).
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