This is a free guide to trading crypto currency altcoins so that you can make profits from your trading so if you want to learn then read on.
The prices of crypto coins are very volatile which makes them excellent for trading as you can set up a crypto trading bot to trade the currencies very effectively with our tips. So we will show you how to have the bot buy when the price is low and sell when the price is high, so giving you very good profits over time (use a calculator like Compund Daily to see the returns you can get with even a small daily percentage gain like 3-4%).
So trading is much better than holding and with holding you are not increasing your investment, only hoping that it’s value will increase, so with trading you get both and so much more profit.
So here is our guide to trading crypto currencies and making lots of money in the process:
- The first thing that you are going to need is Bitcoin as this will be your base currency (it’s best to have Bitcoin as your base currency as it’s the main one so most likely to increase vastly in value so having that as your base means you are usually holding some and if you sell all of your positions you will have 100% Bitcoin). You can get your Bitcoin from Coinbase and we suggest a small amount to start but enough to trade effectively so we suggest around $150 as this gives enough to have around ten small positions open which is a lot better than just one larger position (never put all of your eggs in one basket!). So you can buy your Bitcoin (BTC) there with your bank account or card and it will be ready to use very soon.
- So once you have your Bitcoin in your BTC you need to send that to your crypto currency exchange and by far the best is Binance as they have the best coins, much lower fees and it’s a great service to use (although the bot will do most of the work). Once you have your Binance account you need to send your BTC there so get your BTC wallet address from Binance and use that on Coinbase to send your BTC from Coinbase to Binance, there is simply a send option in your Coinbase BTC wallet so just use that and enter the Binance BTC wallet address there.
- So they are the main accounts that you need, so once you have those you are going to need your trading bot and by far the best is Profit Trailer as it’s easily the best. This is because it is very fast and has all of the best features, the speed is very important as most bots are slow and so will miss trades and land you in a lot of trouble. They also have a great guide to the settings in their Wiki so have a good read through that to familiarise yourself with all of the settings.
- Before you start the bot though you need to understand indicators and this is crucial to your trading success so spend some good time on it. The best way to learn about indicators is to use TradingView which is free for the basic use that you need, so load up any coin on there and then open some indicators such as RSI, MACD, SMA, EMA, Bollinger Bands or any others that you’d like to use and then study how changing the settings affects how the indicator behaves. So what you want to ultimately do is get your indicator firing when the price is low and high, so you can use the low one to buy and the high one to sell. So for example for RSI when the indicator is low the price is generally low and when it is high the price is generally high so it makes sense to buy when it’s low and sell when it’s high. Or for indicators like EMA, SMA or MACD you want the lines to cross when the price is low so that the bot can use that for the buy signal, it’s not so important for the selling with any indicator as Profit Trailer can use a trailing selling mode which means it will trace the price up and sell near the top so it’s easily the best way to sell. As well as all of this though Profit Trailer does come with some pre-installed settings that work well, it’s very much worth while studying these indicators though so that you understand how they work and also then likely have your own settings instead of using some that everyone else is using so you’re less likely to run into volume problems (unlikely unless you are trading large amounts.
- So now you understand indicators, it’s also good to understand that you need lots of small open positions instead of one large one. You may be thinking that one large one is much more effective as you will get a much larger profit on that one trade, but you need some security and having lots of trades gives you just that. The fact of the matter is that in crypto trading (any any other trading for that matter) you’re not going to be successful 100% of the time, it’s all about honing those settings so that you are as successful as often as you can possibly be. But there will always be the unlucky trade where you buy and then the price tanks horribly, leaving you with a big bag (a large loss) where you’ll have to wait for a long time for it to sell for a profit. So having a set of say ten open positions (so setting the bot to use 10% of your balance for each trade) will mean that if you do have one of those unlucky trades then that’s fine as you also have nine other trades doing well and you can easily wait for the bad one to come good.
- Then another great strategy to use with this altcoin trading is to use DCA (Dollar Cost Averaging) as this can make it easier to sell your coin when the price drops (which it often does before rising). So DCA will wait until the price drops after you have bought and so if it does it will buy again at the lower price so that your average price for the total amount of the coin that you have is now lower and so the price does not need to rise as much to get you into a profit. You can DCA several times (this takes a large balance though) and so almost guarantee that you will end up in profit.
- Then another very wise decision is your coin selection, it is not wise to trade all coins and some are a lot better for trading than others. For example the coins with the most value and volume are much more reliable (so are not as volatile) so they are much safer in terms of big drops that can happen with the cheap coins. Volatility can be your friend though depending on your strategy, just be sure to know that if you do trade the cheap coins and one of them crashes it can be a very big drop and can take a very long time to recover so it is generally wiser to only trade the better coins (Profit Trailer has settings for this so minimum price and volume).
- So once you understand all of that you can start Profit Trailer and set it all up with your Binance API keys and other settings that you need (see their wiki for all of those). It runs on your local computer (you can run it on a VPS if you’d like) and opens in your web browser so you can see all of your trades and stats and so see how each trade is going (your current profit or loss) and you can also easily change the settings from within the browser. The great thing is that it also has a test mode so you can run it with your settings in the test mode to see how it does before using your real BTC.
- So once you are trading and making good profits, you just need a withdrawal plan and it’s best to withdraw a small amount per month so that your total investment continues to grow nicely.
So you can see it’s very possible to make large amounts of money from trading Bitcoin and altcoins online with a small starting balance so almost anyone can do it. The key is to learn the indicators well but the software does come with some settings that work really well so you can easily make large profits from trading crypto coins.
We have made this guide for you for free to enable everyone to make profits from crypto trading so if you appreciate that or have made a lot of profit and would like to say thanks then you can send a token of your appreciation to the following Bitcoin address: