How to make $175 a day on Binance as a beginner
If you are looking to make money through cryptocurrency trading and have set a goal of making $175 per day, Binance is a great platform to start with. While consistently making money from trading is challenging, with the right strategies, a disciplined approach, and proper risk management, it is possible to achieve this goal over time. Here is a guide on how to get started and maximize your daily earnings on Binance as a beginner.
1. Understand the basics of cryptocurrency trading on Binance
Create and verify your account: Start by creating an account on Binance and completing any required identity verification. This step allows you to access all of the platform’s features, including deposits, withdrawals, and higher trading limits.
Familiarize yourself with the interface: Binance has a comprehensive interface. Take the time to learn the basics: spot trading, futures trading, staking, and how to navigate the different order types (market, limit, stop-loss).
Funding: Start with a small amount of capital. For beginners, starting with an amount between $500 and $1,000 is a manageable and reasonable range, which will provide enough flexibility to trade without risking too much.
2. Spot Trading vs. Futures Trading: Choose Your Path
Spot Trading: In spot trading, you buy and sell actual cryptocurrency assets like Bitcoin or Ethereum. This is typically less risky than futures trading because you only lose what you invest in each position, but it can also offer smaller returns.
Futures Trading: Futures trading allows you to speculate on the price direction of cryptocurrencies using leverage, which can amplify your profits or losses. However, leverage is risky for beginners, so start conservatively (e.g. 2x or 3x leverage) until you gain experience.
3. Develop a daily trading strategy
A well-defined strategy is essential for making consistent profits. Here are some strategies suitable for beginners:
Scalping: Scalping involves making multiple trades in a single day to profit from small price fluctuations. It requires monitoring the market closely and can be profitable if you manage risk and choose coins with high volatility and liquidity (e.g. BTC/USDT or ETH/USDT).
Swing Trading: Swing trading involves holding assets for a few days to a few weeks, capitalizing on medium-term trends. This can be easier for beginners than scalping, as it doesn't require constant attention.
Arbitrage: Arbitrage is the practice of buying an asset at a lower price on one exchange and selling it at a higher price on another. However, Binance has a variety of trading pairs, so you can explore arbitrage within the platform by buying in lower price pairs and selling in higher price pairs.
4. Learn about market analysis: Technical and fundamental analysis
Technical Analysis (TA): Learning technical analysis will help you predict price movements. Study common indicators such as Moving Averages (MA), Relative Strength Index (RSI), and Bollinger Bands. For a beginner, focus on simple indicators and learn one at a time. Mastering even one indicator, such as the RSI for identifying overbought and oversold zones, can significantly improve your trading accuracy.
Fundamental Analysis (FA): Fundamental analysis examines the underlying factors that affect the value of a coin. Research news, project developments, and major announcements (such as partnerships or updates) as these can significantly impact prices. Binance has a “News” tab that can help you stay informed.
5. Take advantage of volatility and identify patterns
Identify divergence patterns: Divergence between price and an indicator (such as the RSI) often signals a trend reversal. For example, if price is making new highs, but the RSI is making lower highs, this bearish divergence could suggest that a price drop is coming. The same logic applies to bullish divergence. Learning these patterns helps you enter and exit trades with more confidence.
Trade high-volume cryptocurrencies: Coins with higher trading volumes typically have better liquidity and are less prone to extreme fluctuations, making them a safer option for beginners.
6. Use proper risk management
Set a stop-loss: A stop-loss order automatically sells your asset if it falls to a certain price, preventing more significant losses. This is crucial in both spot and futures trading to protect your capital.
Risk only a small portion of your capital: As a beginner, aim to risk no more than 1–2% of your total capital on a single trade. This approach helps prevent significant losses.
Daily Loss Limit: If you hit a daily loss limit (e.g. $50 or $100), stop trading for the day. This prevents emotional decision making, which often leads to further losses.
7. Take advantage of Binance features to earn
Binance Earn: Explore Binance Earn, where you can stake coins to earn passive interest. While it's not direct trading, it does provide a steady income that supplements your trading profits.
Participate in Launchpools or Airdrops: Binance often runs airdrops of new coins or staking pools that allow you to earn free tokens by staking the ones you already own. These opportunities are often limited, but they contribute to your overall earnings.
8. Track and adjust your strategy
Keep a trading journal: Record every trade, including entry and exit points, the strategy used, and the outcome. Reviewing this data can help you see what works and identify mistakes.
Adjust your strategy over time: Based on your results, refine your strategies. Focus on the techniques that work and eliminate those that don't, which will gradually improve your profitability.
9. Be patient and stay consistent
Making $175 daily as a beginner will take time, practice, and consistency. Start small, focus on preserving capital, and gradually increase your profits as you become more confident and experienced. Cryptocurrency trading has a steep learning curve, so give yourself time to master the basics and develop a personalized approach.
Conclusion
With patience, discipline, and the right approach, making $175 daily on Binance is achievable. Always remember to trade within your limits, prioritize risk management, and continually educate yourself. Following these steps won’t make you an instant success, but it will put you on the path to consistent profitability.
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