This is a topic that is dear to my heart and what I will do is go straight to show you the steps you need to make money trading altcoins using the Binance trading platform.
But first, if you don’t know anything about crypto, I recommend you start here on the science of crypto and blockchain, when done, check out the recommended crypto platforms to use and lastly, the best wallets you can use and store your profits.
But before we start, we will see the core model you want to follow.
Check this out: there are lots of Case Studies coming up on Crypto Trading, Investing and securing your digital assets. Click here to get all stories. Also, click the notification bell on top of the page to get case studies, experiments, and real-time Journeys IN CRYPTO.
How to Trade Cryptocurrencies & Profit on Binance Trading Platform
The following crypto trading rules and methods are what covers the science of crypto trading be in on Binance, Kraken, Coinbase Pro, and other cryptocurrency trading platforms.
These trading methods are what will help you cut losses and make more money than others who trade with emotions without any founded strategies.
As we know, be it Forex or Crypto, pro traders make money off the emotional traders.
If you become the emotional trader other traders will make money off your emotions and vice versa. And as such, our trading mantra will be based on the 6 principles as we discuss below.
How to Trade Cryptocurrencies on Binance in Nigeria, USA, India in 6 Steps
Here are all the steps you need if you want to prevent ugly losses with digital assets trading.
1. Don’t buy at the top blindly
Unless you are day trading cryptocurrency, it is not advisable to invest/trade in crypto when it is surging.
For instance, Bitcoin grew in the last 5 days (as of the time of writing) to $19,000+.
While we anticipate that Bitcoin might grow to $50,000 per coin, on the other hand, you will notice that only a few newbies will invest in BTC at $19,000.
The pros carry out research on what next or wait for it to come down– dips – before investing.
So, unless you are day trading at the top, never buy into the pump if you want to prevent losses.
2. Don’t Over Trade
Sure, we want to make $1,000 in profits in one day. That’s cool. But you know what?
A lot of traders want to make the same hence, getting too much greedy to marry trades will only hurt you.
While you want to make 50%, 70%, or over 100% profits, just remember that the market is volatile. And as such, if you are already in profits and you are not sure about the next chart movement, get your profits and close for the day.
This rule is important for both day traders – scalpers and non-day traders.
Lastly, you don’t want to (FOMO) – that is buy sporadically based on the Fear of Missing Out on a particular coin.
There are many grand rules to trading if you are a beginner.
You can get the full details in our 7 parts to crypto trading mastery + Sample Signals – a Free Course.
3. Trade with assets with a Daily volume of 50+ BTC
It’s important to select a coin that has a good volume before you start trading. That way, you do not run out of luck. How?
Because, when an asset has a nice daily volume, say from 50 BTC, it shows that there are a lot of people trading with the crypto asset, hence the need to select your coin carefully.
To see which coins have 50+BTC in traded volume, just open your Binance Classic trading chart, and look at your top right, and select volume.
From there, select the asset that has up to 50+ daily BTC trading volume. For instance, the Atom coin as shown above has an 83.20 BTC trading volume.
4. Use Stop-Loss Properties
Stop-Loss is a trading property that helps traders avoid further losses in any trading rounds.
By definition according to investopedia, a stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price.
A stop-loss is designed to limit an investor’s loss on a security position.
For example, setting a stop-loss order for 10% below the price at which you bought the crypto will limit your loss to 10%.
Using a crypto coin signal below for illustration.
Sell: 3400, 3600+
If we were to buy #MTL between 3150-3200, going on we entered the trade at #3200, a good stop-loss would be at #3050 or #3100 depending on the price value of each coin points.
The command is, should the MTL coin goes down to #3050 or #3100, trigger a sell to prevent more losses.
What happens if the coin does not go down?
You are all in profits if it moves from the buying position of #3150 to #3700+.
Read also: How to set up Stop-Limit for crypto trading on Binance
5. Adopt the Base Line or levels of Support and Resistance Strategy
Call it the Base line or levels of Support and Resistance (SR, S/R), this is a trading method we will use to cut the losses most people have.
The trading asset must support the resistance or Baseline. Also, this method makes use of the Trading View app available for free on Binance.
You can use any other trading app like Coinigy if you want.
Step 1. To start trading, click here to create a trading account on Binance platform.
Step 2. When clicked you will be prompted to enter your email and password. Go ahead and do that and move on to create your account.
Step 3. Login and go on to Fund your account using credit card, bank transfer, SEPA or transfer crypto to your account on Binance.
Step 4. Click on Trading and go to Classic Trading interface.
As the trading interface opens up, click the chart top corner to expand.
Also, change the time frame to 1hr.
The need for Time frame: Time frame is extremely important.
Identifying levels of S/R or Base Line on different time frames can make a big difference in your strategy.
The bigger the time frame (12hr, Daily, Weekly) will reveal stronger levels of S/R, while shorter time frames such as 30m, 15m, 5m, etc. will show weaker (also sometimes called ‘local’) levels of S/R.
Now here is how to profit from Binance crypto trading.
6. The trading coin must have consistency in terms of the resistance
To choose a trading asset you want to make sure that the coin has consistency in terms of the resistance or base-lines in the last 2-3 months.
From our choice of coin, we will be using ATOM for example.
Looking at the chart you can see many price spikes and dumps.
To start with you have to draw baselines.
Now ‘Base-lines’ were drawn at the start of a big price increment.
From the chart below, the yellow squares show the big spikes.
What you want to do is draw base-lines below these spikes for your own trading pairs.
Having seen what Base-lines are and where to draw them, let’s continue to decide our buying positions.
Entering a trade or Buying
Before you buy a coin, you need to check the point where the price touches and drops below this point 10%. If this condition is satisfied then you should buy it.
Let’s see the chart below for guidance.
Here’s another one. For this one, you can see that after our baseline, the coin kept going down.
For this kind of trade, you can buy up to 2 positions or more if you had used 25% of your portfolio to buy at the first drop.
Pausing to explain this.
What do I mean by 25% of your portfolio? See the image below to understand what I mean.
Deciding a crypto asset to trade on
We did say that to choose a trading asset you want to make sure that the coin has consistency in terms of the resistance or base-lines in the last 2-3 months.
What this means is that you want to check whether the price always recovers after dropping below the base-line.
As Quickfingers describes it, you need to check the past 2-3 months chart and observe whether during this period the price has dropped below any baseline and couldn’t recover.
If you see just even one such scenario, you should avoid trading with that coin because if a coin does not respect baseline again, you will be stuck in the bought position.
Take a look at the example below.
Buy in Layers – Optional
Buying in layers is for the times the price does not recover to the exact baseline.
With the purpose to guide losses and make more money, you can buy 10% more as the traded asset goes down.
For this particular trade, the asset went down at 12am but rose to the point of the third sell at 9am.
Here is the trick with buying in layers
Okay let’s say you bought at 10% below baseline, also at 15% below baseline, but the price keeps falling and now it reaches 30% below baseline, so you buy again.
You need to have the mindset that if the price keeps dropping it’s like a bonus for you and you should be happy and take the advantage of the situation because you will make more profits eventually when the price recovers – which you can see at the third selling point.
How to choose your Cryptocurrency Trading Strategy and Method
While this trading strategy does not promise a heaven on earth wins, the good news is that using it as explained will help you make profitable trades than other traders who trade with emotions.
For you, you are using a system and strategy that works. So sticking to it is defining your own custom technical analysis.
Lastly, I would say, if you are okay with this trading strategy then stick with it and trade without adding another technical analysis because as you know there are a lot of it.
If you observed we didn’t pinpoint using RSI although it does help nor recommending to trade using the news trend like what happened to XRP when they had a tussle with the SEC.
When to add to the technical analysis.
First off, this method was tested and recommended to guide against trading a coin that may take 3 months or more to recover before you sell and make profits.
So, only add to this strategy when you would have mastered the game.
But as a faithful trader and beginner, this is enough to make you money trading cryptocurrencies.
The Summary on Trading on Binance to make money.
- Select a crypto asset that has a daily trading volume of at least 50BTC.
- Check out its baselines/Resistances in the last 2-3 months if they recovered after the dips.
- Avoid buying at the top. If a coin is at the top, unless you want to day trade, check out another asset that meets the qualification of the properties as expected of it using the trading strategy as discussed.
- Use a crypto exchange platform that is flexible with many trading infrastructures to support your decisions.
The thing is, just like starting a crypto business from home, crypto trading is lucrative, and it might surprise you to know that a lot of people are balling with it.
And even more interestingly, this is an escape route for lots of Nigerians and AFRICANS who are out of the labor force.
For instance, what would have been the story of many Nigerians and Africans who are graduates with no job to cater for themselves and their families? Sad.
Coming back home. While we know that crypto trading in Nigeria or the USA like every other country is lucrative, we need not to impatient with it or assume we know it all by ignoring to follow the best practices.
The first and one of the most important best practices to follow in crypto trading is using Stop-Loss.
The good thing is that I took the time to explain what stop loss means and how to use it.
In case you didn’t get it, go to the video sample and check it out and if you have further questions, drop them in the comment section.
Apart from day trading which involves trading against or following a crypto current price and trends, this is the best way to trade crypto by avoiding over 60% risk of losing your crypto assets.
All in all, follow the simple technical analysis as outlined, use stop-loss, be patient, withdraw your income when you are in profits and enjoy the moment.
Additionally, take some tins or cups of milk to calm down your system.
That is all.
Ready to start trading crypto today? If yes, welcome.
While we have reviewed the top cryptocurrency trading platforms to use and trade, one of the platforms that has both beginners and advanced traders at heart is Binance.
If you want to test out the trading facilities offered on the Binance then click below to get an account and get started using the screenshots in this guide.
Bonus: how to trade on Binance pdf and make money.
Looking for a hands-on guide on how to make money trading crypto on Binance?
If yes, access our 7 parts crypto trading lessons where you get the chance to download the document for free.
FAQ about making money on Binance trading Altcoins
Q. Can I trade cryptocurrency in Nigeria using the above method?
A. The answer is yes. Be it in the USA, Nigeria, or India, as far as you are using Binance and you follow the trading steps as outlined, you will make money trading these cryptos.
Q. Can I use Mobile Apps to trade cryptocurrencies and make money?
A. The answer is yes. Just like many crypto users of Binance, to enable this, you want to download the Binance crypto trading App which pretty much makes life simpler for you.
Plus, you can use it to see coin movements after a trading session.
Q. What is the best cryptocurrency trading platform in Nigeria?
A. Binance. As per usage, I would say that Binance is more than enough and a robust cryptocurrency trading platform you need in Nigeria.
Q. How Can I start cryptocurrency trading in Nigeria?
A. Follow the proceedings. As already outlined, to start cryptocurrency trading in Nigeria, you need to first have the capital, maybe $50, $100, $1,000, or whatever amount you want to start with.
The next step is to deposit the money from your bank account into Binance, exchange it for the trading pair you want to use, and start trading.
Q. What is a simple crypto alert tool I can use to monitor the market?
A. Coindera tool. For now, I recommend using Coindera to get alerts on your crypto trading.
The good side of the app is that you get alerts via Email and Telegram on its free plan. And if you want SMS, you can upgrade and check their other properties as sorting to you.
Give me your best tip for Trading Cryptocurrency
I am done with the main trading lesson but if you want one of my magic pills then here is it.
Starting cryptocurrency trading with more capital will make you LESS GREEDY.
For instance, if you deposit and start with $2,000 or $1,000, you can enter a trade at 4am, and at 9am or less it is at profits and you sell out and close for the day.
Depending on the type of coin you traded, with $2,000 or $1,000 you can make $50 in profits.
For me, I think this is enough for the day.
With this simple strategy, you will be able to manage your emotions and the “want for more”.
Also, I recommend you don’t take TRADING in the beginning as your main job because “your want to survive” will always PUSH you to a bad and funny decision.
So, have a side hustle and see crypto trading at the beginning as a second choice hustle.
And when you win over time you can go on to follow your own strategies or whatever works for you.
The big question.
Must you start trading with $2,000 or $1,000? No.
You can start with what you can afford to lose. The notion here was to define a more favorable crypto strategy.
But the big point is, with a bigger portfolio, you can trade in profits and close for the day in under 2 or 4 hours.
Ref: Quickfingers Lluc