Here is a strategy on how to start earning on cryptocurrency with $50. It is based on a small starting capital and takes into account risks.
1. Platform selection and preparation
• Register on a reliable exchange: Binance, Bybit, OKX or KuCoin.
• Top up: Deposit $50 in stablecoins (USDT, USDC or BUSD).
• Learn to use the exchange: Familiarize yourself with the basic functions (charts, orders, stop-losses).
2. Strategy: Scalping (short-term trading)
This strategy involves making small profits from frequent trades.
How does it work?
1. Choose a popular cryptocurrency:
• BTC, ETH, or less volatile altcoins (e.g. ADA, SOL).
2. Trade according to the trend:
• Use a simple indicator such as EMA (exponential moving average) to determine the direction of price movement.
• Buy when the price is above the EMA and sell when there is a short-term rise.
3. Set limit orders:
• For example, buy ETH for $50 and sell for $51 (2% profit).
Due to:
• Avoid high volatility to avoid losing capital.
• Use stop-losses (e.g. -1%) to protect your money.
3. Alternative strategy: Futures trading
Futures trading allows you to make money even when the market falls, but it is more risky.
1. Use minimum leverage (x5 or x10):
• For example, trading $50 with x10 leverage, you control a $500 position.
2. Look for strong support and resistance levels:
• Buy near support, sell near resistance.
3. Risk management:
• Set take profit (+5%) and stop loss (-3%).
Example:
• You opened a BTC position at $20,000 and sold at $20,100. When using x10 leverage, your profit will be around 5%.
4. Investing in high-risk altcoins (business approach)
1. Choose new altcoins with growth potential:
• For example, small cap coins that are just starting to gain popularity.
2. Diversify:
• Deposit small amounts ($10 in 5 coins).
3. Expect growth:
• Sell when the coin rises by 20-30%.
5. Key tips
• Risk no more than 5-10% of capital in one trade.
• Learn continuously: Watch analytics and technical analysis videos.
• Do not give in to emotions: Stick to the plan even in case of losses.
Expected result:
With a conservative approach, you can earn 3-5% per day, which will potentially turn $50 into $100-$150 in a month. But remember that success depends on experience and discipline.