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

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

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

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

I am not a big crypto holder.

Despite the high volatility of cryptocurrencies, I chose to remain a crypto trader rather than a holder because I need my money to circulate in and out of the enterprise to maximize its benefit for me and my situation. I simply cannot sit back and wait for months or years for cryptocurrency to grow while watching 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 cryptocurrency on Binance. After several months of interacting with the platform, I noticed that at least 50 different trading pairs grow by 10-20% daily. Some even reach insane highs of 800% in a single day! Some lucky ones manage to achieve a growth of 100%, while others range from 40% to 80%.

At this point, I usually focus on those that grow by 10-20% a day, as this is a regular occurrence and the goal of this story. This strategy is applicable only to spot trading.

Strategy

Scenario 1

If you invest $1,000 on Binance and track the growth of one pair at 10%, you will earn $100. Repeat this every day, and you will make $100 every single day. As of this writing, several pairs have increased by at least 10%. And this happens every single day! With your investment of $1,000, you just need to choose one pair that you like and that suits you, buy it, wait for it to grow by at least 10%, and then sell it.

You can even set a stop-limit price on the platform that will automatically do this for you. You just 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, as you will still have to pay trading fees.

In my experience, a 10% increase can happen in about a few hours or in less than a minute, depending on the volatility of the pair you chose. 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 realize a 5% increase, you will also be making $100 every single day.

With a $2,000 investment, a 10% increase guarantees you $200 a day!

Scenario 3

Invest $500 on Binance and track a 20% increase, and you will earn $100 a day.

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

Why invest more money rather than less?

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

Again, with $200, you would need to trade at least five different cryptocurrency pairs with a 10% growth a day to reach a minimum target of $100. This can be exhausting since different pairs may grow simultaneously. This can create confusion in selection, leading to mistakes that result in losses.

Investing at least $1,000 in this strategy is much safer and less burdensome. The more money you invest, the easier it is to make a profit and the less tax you have to seek different pairs at different times to earn $100 a day.

A $5,000 investment with a 10% profit strategy can earn you $500 a day! Nice, right?

Stable coins

Make sure you are trading your cryptocurrency against a stable coin like USDT, BUSB, BIDR, GBP, etc. This way, after exiting the trade, you keep your money in a currency whose price will not change until you decide to trade again.

You don't want to be surprised when you find that your $1,000 has suddenly turned into $340 after being saved in dogecoin. Remember, your $1,000 using this strategy is an investment that will bring you $100 a day. So you need to ensure it remains untouched.

Of course, there is some probability that dogecoin's price may rise during this period, which could mean greater profits for you, but that is not the strategy.

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

After a few days of using this strategy and fully understanding it, you can increase your profit size to 15% or more to earn more money each day.

Trading fees

You can also learn to trade at the 10% mark, possibly at 12-14%, to free up extra money needed to cover trading fees. This ensures that your initial investment of $1,000 remains untouched. But this is after you master the strategy.

Alternatively, you can set aside some money in BNB if you use Binance, which not only reduces your trading fees but also ensures that your initial investment of $1,000 remains untouched and that trading fees are not deducted from it.

Pros and cons of this strategy

The advantage of this strategy is simple: you will not be subject to sharp drops in cryptocurrency, which helps preserve your initial investments. Because you only buy during growth and sell after a 10-20% increase. You exit as soon as you make money and are protected from potential losses due to these sharp drops.

The downside: buying and quickly selling day by day will lead to you paying more fees, as you will be charged for every purchase and every sale.

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

Keeping your money in a stablecoin when you are not trading will also prevent you from earning potential profits if you had kept them in a coin whose value has increased during that time.

You also miss out on the power of compound interest since you only buy growth and do not allow your money to multiply. This implies that even after you earn your $100 on day one, on day two you trade $1,000 instead of $1,100.

Can the strategy work?

Yes, the strategy can work, but only if you stick to it. Since human emotions and levels 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 paramount.

Imagine a scenario where you intend to trade only with a 10% increase. You invest your $1,000. You buy and sell after a 10% increase, and then you panic. But the crypto pair continues to grow to 50%. In this case, if you had waited before selling, you would have earned not just the $100 you initially wanted to make, but $500 that day.

Therefore, tact is very important. That’s why having a proper understanding of technical analysis is essential for a crypto trader to get the most profit from their enterprise.

For example, in this specific scenario, an experienced trader will not only earn the initial $100 they were aiming for but also an additional $400 after deducting, of course, trading fees. The point is, they would still be making their $100 a day.

How to do this practically

Analysis

After setting up your trading profile on Binance for a few days, study the pairs and observe their patterns. Be sure to watch those that have grown the most on that particular day, for example, those with 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 select a trading pair with sufficient volume to fulfill their buy and sell orders. Choosing trading pairs with low volumes will not benefit the trader.

In my experience, many cryptocurrency pairs remain in the green for at least two days before they drop off the top list. Sometimes they continue to grow consecutively for three days before they start to fall. Note that they may rise and fall between 24-hour periods, but after a few hours, they recover and continue to grow over the next three days. Sometimes a specific pair could grow for an entire month! Like Shiba Inu did in October 2021. On Binance, it grew by 1,128% in a month!

This strategy of buying during growth and selling after a subsequent growth of 10% or 20% will protect you from sharp drops during 24-hour periods.

Wake up early / stay up late / manage your time

Yes, even trading cryptocurrencies requires you to wake up early. Binance uses UTC. Which gives and takes 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, and so on.

Proper time management is required to take advantage of the daily increase that guarantees you $100 daily.

Make sure you are awake and alert when the 24-hour trading period starts on Binance.

You will notice that many pairs can rise (and they do rise) by 10% at any moment during the trading period, but in my experience, trading at the beginning of 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 behave throughout the day. Some start rising immediately, while others start falling right away.

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

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

How to do this successfully

Check your greed

Of course, making money and the promise of quick returns after minimal effort can make us very greedy. Check your greed. If you intend to earn only $100 or $200, stick to that. Keeping your money after you reach your desired goal can lead to witnessing a sharp drop that causes you to lose not only your daily profit but even your initial investments.

Stick to your strategy

Again, along with checking your greed, stick to your trading strategy. Of course, you would like to earn more, but after you have made your target money, gather the courage and personal discipline to exit the trade safely.

A sharp drop can wipe out all your gains, which, from personal experience, is very frustrating. It's better to walk away with a 10% profit than to watch everything you earned, including your initial investments, vanish into thin air. After all, tomorrow is another day to earn another $100.

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