Within the past few years, crypto trading has become one of the most popular financial instruments. A large number of crypto projects and exchanges sprang to life which made this market a lucrative sphere for traders across the world. Institutional investors, too, are increasingly turning their attention to the crypto sphere as a promising investment vehicle.
But how to actually make real money in crypto trading? This is the question both professional and beginning traders seek to answer. Check out this review of the key aspects around profitability in the crypto space that you should be aware of.
How to start making money in crypto trading?
The golden rule of trading any assets is pretty straightforward: “Buy for the lowest price and sell for the highest”. What should the algorithm of actions to follow in order to achieve your trading goals?
First of all, it is crucial to sign up with a reliable exchange. Evidence shows that crypto exchanges can be hacked, or else they can freeze your assets without giving any timeline for when they will be unlocked. Of course, no one is protected from force majeure, but, typically, the larger the crypto exchange, the less likely it is that some malicious action will be taken with regards to it.
You can choose to trade in cryptocurrencies only, for example use trading pairs such as BTC/XRP, BTC/ETH, etc., or you can select any fiat currency and trade it with respect to any coin. Experts advise beginners to choose the latter option, since it will be quite difficult to predict the fluctuations of two extremely volatile assets in relation to each other without having the proper experience.
As well as that, an important factor to consider is the popularity of the trading pair. It is vital to trade only those assets that enjoy good demand in the market. Otherwise, an overwhelming amount of time will be spent just waiting for the buyer. Popular trading pairs are not subject to significant fluctuations due to their large-scale capitalization.
Knowledge and information are vital in crypto trading. As a trader, you will need to conduct an on-going analysis of the market and act on it. For a beginning trader, the best option would be to buy an asset at a time when its rate drops below the average. If the price has already started to climb up slightly, but has not yet crossed the average value, this is still a good time to invest.
Smart money management
Taking care of the revenue you earned as a crypto trader is just as important as everything you did to actually earn that money. A timely withdrawal of coins to secure third-party wallets is something you should always remember about. Smart money management and risk diversification are the key to becoming a successful trader in the crypto sphere.
How much can I make as a crypto trader?
As you can imagine, there is no universal target indicator to serve as guidance in this market. Talking about specific numbers in such a volatile market as crypto is quite difficult. It all depends on the trading strategies applied, the experience and skills of the trader, the deposit, etc.
Provided that you are able to continuously reinvest, it is possible to reach a yield of 100% per month. In the past few years, marginal trading used to be extremely effective, although it’s less actionable right now. Beginning traders rarely make more than 50% per month.
Get exclusive trading intel with Coinology
Experienced crypto traders all agree that if there’s one thing that can facilitate trading in this unique market, it’s definitely cutting-edge technology. A resource like Coinology is on the radar of many experienced and aspiring traders alike.
Coinology specializes in producing accurate crypto trading signals for its users. Its team has the first-class experience in crypto trading as well as access to state of the art technology to analyze scores of data and make accurate trading signals. All in all, its experts have worked with 100+ exchanges and 150+ coins. The number of transactions has already surpassed some 500,000.
Coinology estimates 90% of its trading signals to be successful. On average, each transaction delivers a solid 5 to 11% profit.
The functionality of the platform is user-friendly and efficient. Users are notified of trading signals instantly via their preferred messaging app to be able to act on it right away. Coinology also offers a handy step-by-step guide to getting started with its platform.
Registration is free – users can start repeating Coinology trades once their accounts are set up. If you’re looking for a tech solution that can actually make a positive impact on your crypto trading, this one might just be a perfect option for you.