How to trade cryptocurrency on Binance and make a profit? I'm a beginner.

I have been trading cryptocurrencies on Binance for over 6 years.

As an experienced trader, I can tell you that crypto trading on Binance is a rollercoaster ride with crazy ups and downs. I have seen some crypto pairs go up by 11,000%, 800%, 200%, and even 5% on some days.

Sometimes I was able to multiply my money by 400% in a week, and sometimes I made a profit of 5% in a week.

I'm not a big crypto hodler.

Despite the high volatility of cryptocurrencies, I have decided to remain a crypto trader rather than a hodler because I need my money to flow in and out of a business that is most beneficial to me and my situation. I simply cannot sit back and wait for months or years for cryptocurrency to rise and watch it go through these crazy ups and downs.

For these reasons, I needed a strategy that would suit me best. And after some experience, I came up with this.

I trade my crypto on Binance. After a few months of interacting with the platform, I have noticed that at least 50 different trading pairs are growing by 10-20% daily. Some even reach crazy highs of 800% in a single day in some cases! A select few manage to achieve 100% growth, while others manage to grow by 40% to 80%.

At the moment I usually focus on those that are growing 10-20% per day, as this is a regular occurrence and the purpose of this story. This strategy only applies to spot trading.

Strategy

Scenario 1

If you invest $1,000 on Binance and track one pair to go up 10%, you will make $100. Repeat this every day and you will make $100 a day, every single day. At the time of writing, several pairs have gone up at least 10%. And this happens every single day! With your $1,000 investment, all you have to do is pick one pair that you like and are comfortable with, buy it, wait for it to go up at least 10%, and then sell it.

You can even set a stop limit price on the platform, which will automatically do it for you. You simply specify the price at which you want to exit, and the platform will sell it for you.

You will exit the trade with a profit of $100 since you will still have to pay trading fees.

In my experience, a 10% gain can happen in a few hours or less than a minute, even depending on the volatility of the pair you choose. On some lucky days, it happens within the first 10 minutes. You get in and out, make money, leave the platform and move on to other things until the next trading day.

Scenario 2

If you invest $2,000 on Binance and see a 5% growth, you will also earn $100 per day every single day.

When you deposit $2,000, a 10% boost guarantees you $200 per day!

Scenario 3

Deposit $500 on Binance and watch it grow at 20% and you will earn $100 per day.

Remember that these are the maker and taker fees that Binance charges for executing these transactions.

Why invest more money rather than less?

Imagine you invest $200. To make $100, you would need to trade a pair that goes up 50%, which is much rarer than a pair that goes up 10%.

Again, with $200, you would need to trade at least five different cryptocurrency pairs with a 10% increase per day to reach the minimum target of $100. This can be tedious as different pairs can increase at the same time. This can create confusion in the selection, which can lead to mistakes that lead to losses.

It is much safer and less burdensome to invest at least $1,000 in this strategy. The more money you invest, the easier it is to make a profit and the less taxes you will have to search for different pairs at different times to earn $100 per day.

An investment of $5,000 with a 10% profit strategy can earn you $500 per day! Neat, right?

Stable coins

Make sure you trade your crypto against a stablecoin like USDT, BUSB, BIDR, GBP, etc. This way, once you exit the trade, you are keeping your money in a currency whose price will not change until you decide to trade again.

You don't want a surprise when you find out that your $1,000 has turned into $340 overnight after being stored in dogecoin. Remember that your $1,000 is an investment that will earn you $100 a day when using this strategy. So you need to make sure it stays intact.

Of course, there is some chance that the price of dogecoin may rise during this period, which could mean big profits for you, but this is not a strategy.

Don't forget to withdraw or transfer your daily profit if you don't want to reinvest it.

After a few days of using this strategy and fully understanding it, you will be able to increase your profit margin to 15% or higher to make more money per day.

Trading commissions

You can also learn to trade for the 10% mark, perhaps 12-14%, to make room for making the extra money needed to pay trading fees. This will ensure that your initial $1,000 investment remains intact. But that’s after you’ve mastered the strategy.

Alternatively, you can set aside some money in BNB if you use Binance, which will not only reduce your trading fees, but also ensure that your initial $1,000 investment remains intact and that trading fees will not be deducted from it.

Advantages and disadvantages of this strategy

The advantage of this strategy is that you will not be exposed to sharp falls in cryptocurrencies, which will help preserve your initial investment. Because you buy only during growth and sell after a 10-20% increase. You exit immediately after you make money and are protected from potential losses due to these sharp falls.

Disadvantage: Buying and selling quickly day after day will result in you paying more in fees since you will be charged for every purchase and every sale.

Additionally, by only targeting a minimal gain, such as 10 or 20%, you could miss out on profits if your chosen crypto pair grows to 30, 50, 100, or even 200%.

Keeping your money in a stablecoin when you're not trading will also prevent you from making potential profits if you kept it in a coin that has appreciated in value during that time.

You also miss out on the power of compound interest because you're only buying growth and not allowing your money to multiply. This means that even after you make your $100 on day one, you're trading $1,000 on day two instead of $1,100.

Can the strategy work?

Yes, the strategy can work, but only if you stick to it. Since human emotions and the degree of greed can interfere with your trading strategy, self-discipline is very important here. But only to the extent that it makes sense. In this case, tact is also of the utmost importance.

Imagine a scenario where you only want to trade on a 10% upside. You put in your $1,000. You buy and sell after a 10% upside, and then you worry. But the crypto pair continues to rise to 50%. If you had waited to sell in this case, you would have made not just the $100 you originally wanted to make, but $500 that day.

Therefore, tact is very important. That is why a proper understanding of technical analysis is important for a crypto trader to get the maximum profit from his venture.

For example, in this particular scenario, the experienced trader would not only make the initial $100 they were looking to make, but they would also make an additional $400, minus trading fees of course. The point is that they would still make their $100 per day.

How to do it practically

Analysis

After setting up your Binance trading profile, spend a few days studying the pairs and observing their patterns. Be sure to watch the ones that have risen the most on that particular day, such as the ones that have had the highest percentage of green in the last 24 hours. This is for beginners. Experienced traders already know this. Experienced traders will also be able to choose a trading pair that has enough volume to fill their buy and sell orders. Choosing trading pairs with low volumes will not benefit a trader.

In my experience, many crypto pairs stay positive for at least two days before they disappear from the top list. Sometimes they continue to rise consistently for three days before they start to fall. Note that between 24-hour periods, they can rise and fall, but after a few hours, they recover and continue to rise for the next three days. Sometimes, a particular pair could rise for a whole month! Like Shiba Inu did in October 2021. On Binance, it rose 1128% in a month!

This strategy of buying on the rise and selling after a 10% or 20% re-rise will protect you from sharp declines over 24-hour periods.

Get up early/go to bed later/manage your time

Yes, even crypto trading requires you to wake up early. Binance uses UTC. The give and take is different from the usual periods that most people in the world use. For example, the trading day on Binance starts at 3 AM in Nairobi, 1 AM in London, 11 PM in New York, etc.

This requires proper time management to take advantage of the daily boost that guarantees you $100 daily.

Please ensure that you are awake and alert when the 24-hour trading period begins on Binance.

You will notice that many pairs can (and do) rise by 10% at any given time during the trading period, but in my experience trading early in the 24 hour period is less problematic when using this strategy.

Why do this?

The behavior of a cryptocurrency pair in the first few minutes of a new trading day can tell you a lot about how it will perform throughout the day. Some start to rise right away, while others start to fall right away.

They also rise or fall significantly during the first few hours. They can continue to rise and fall for 24 hours, but the first few hours are the most important and safest to trade for a person who would like to use this strategy to make $100 a day trading cryptocurrency. So time management is very important.

Of course, nothing is guaranteed in crypto trading due to the high volatility of these assets, but catching pairs in the new 24-hour trading period is a safe and secure start.

How to do it successfully

Check your greed

Of course, making money and promising a quick return after a small effort can make us very greedy. Check your greed. If you intend to earn only $100 or $200, stick to it. Keeping your money after you have reached your desired goal can lead to you witnessing a sharp decline, due to which you will lose not only your daily profits but even your initial investment.

Stick to your strategy

Again, along with checking your greed, stick to your trading strategy. Sure, you'd like to make more, but once you've made your target money, have the courage and personal discipline to exit the trade safely.

A sharp drop can result in the loss of all your gains, which, from personal experience, is very frustrating. It is better to walk away with a 10% profit than to watch everything you have earned, including the initial investment, disappear into thin air. After all, tomorrow is another day to make another $100.

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