How to profit from trading in digital currencies (start here) 2024
If you want to profit from trading in digital currencies, you should know well that this is not an easy matter.
But we here at Profits Expert are here to help you know how to trade digital currencies correctly.
Not only that…
You will also learn about a set of steps and tips that I wish I had known before losing a lot of money.
Are we finished?
No, you will also find the best starting sites in addition to my own strategy.
Are you ready to get started?
What do you need to be able to profit from trading in digital currencies?
In order to start trading in digital currencies, there are many things that you must possess.
I will try to keep it as short as possible so you don’t get bored.
Let us put your needs in simple points…..
- A digital currency wallet (to receive and store your digital currencies)
- capital (there is no specific amount, but certainly the higher it is, the greater your chance of profiting from trading. $100 is a good amount to start with)
- Know the risks of trading digital currencies and not risk what you cannot afford to lose.
- Determine the digital currencies (your investment opportunities) that you will work on.
- Choose a reliable trading platform so that you can trade without any problems.
- Choose a trading strategy (or try several) until you finally find what you master.
Now let me tell you…
The most important tips before starting to trade in digital currencies
Here too, I will try to be as brief as possible, and if you want, you will always find more topics below, or you will find me referring to them in the topic.
But you should know that these are the most important tips and steps that you should take into consideration before starting to trade in digital currencies.
It is also the result of years of experience and analysis of many traders around the world.
Because I know that losing a large portion of currencies is not a pleasant time and can be easily overcome, I decided to collect all these tips that were learned the hard way.
It’s time for me to tell you the most important tips so that you can continue trading in digital currencies.
1- Trade only what you can afford to lose
The first advice is always emphasized by all successful investors around the world.
Under no circumstances should you rush towards making a quick profit and use your necessary savings or borrow in order to trade in digital currencies.
These investments are high risk, even if the widespread news talks about profits.
Every time someone wins, someone else loses.
So stay away, stay away, stay away from that money that you need.
2- Determine why you want to trade digital currencies
Before starting to enter the field of digital currencies, you must first determine your goal in entering this field.
Do you want to trade on a daily basis or will you buy and wait?
What is the amount you want to reach?
The goal is what will make you continue to work and bear losses until you achieve the results you desire.
3- Draw the limits of your profits and losses from the beginning
Determining the profit you want to achieve from the deal before entering it will enable you to avoid loss and also greed.
Also, setting a loss limit will not sell the currency before reaching it. This will enable you to avoid what your feelings might do to you and to silence that internal voice that tells you (sell now before you lose more) because often these losses turn into gains after a few days and not. You will have nothing but regret.
Do not put this limit in your mind, just give an order to the platform to sell if the profit you set is reached, and do not regret it if the currency rises more (you have already made a profit, and if you buy again you may lose in most cases).
This brings us to the other piece of advice, which is…
4- Control your feelings and stay away from FOMO.
You traded a specific currency and made a small profit, and after selling, you found the currency rising again?
Did you find that one of the currencies is rising very significantly and you did not trade it?
Did you find a currency that has dropped significantly and you want to buy it quickly before it rises again?
Advice now : Don’t Fear Of Missing Out or what is called (FOMO). Do not be afraid of losing that opportunity because this opportunity often comes without study and therefore it often causes a loss.
5- Do not put all your eggs (coins) in one basket
The most important advice now, which you will discover when you lose a large portion of your money (which I hope you will avoid) is not to put all of your money in just one currency.
Diversifying between currencies in your investment portfolio will enable you to increase profit opportunities and reduce loss rates.
Also try not to put your entire capital into digital currencies. You can invest in other areas such as Forex, real estate, gold, and others (certainly depending on the money you have).
Therefore, never underestimate this advice when trading digital currencies or other investment opportunities.
6- Avoid greed (seriously, don’t be greedy)
One of the most important causes of losses in the digital currency trading market is greed.
We made a profit, let’s say 10% of one currency. You now tell yourself why I don’t continue this trading process until I reach 50%.
This matter is repeated constantly, and in the end you find that the price of the currency begins to fall and you begin to lose after this profit.
If you want to continue a deal, sell a large part of it with the current profits and leave a part to invest in the deal, even if you lose, you will lose a smaller amount.
Therefore, my advice now is that a small, guaranteed profit is better than large profits that you may not achieve.
7- The best time to trade digital currencies is when the price of Bitcoin increases or the price of Bitcoin decreases
Certainly if you will be using Bitcoin to buy.
The prices of all digital currencies depend primarily on the price of Bitcoin.
This is because it is traded more against Bitcoin (and not against the dollar).
Therefore, when the value of Bitcoin rises, the price of other digital currencies in Bitcoin is lower.
When the price of Bitcoin decreases, the prices of other currencies decrease because many people sell during this period.
Thus, always make sure to choose the correct time to buy and sell.
If the price of BTC fluctuates greatly, it is not preferable to trade at all, as the market becomes completely unpredictable. Sometimes it is preferable not to profit rather than lose your money.
8- Time is the most important in trading digital currencies
In Forex, trading takes place throughout the day, 5 days a week.
As for the stock exchange, trading takes place only part of the day, usually for 5 days as well.
If you want to profit from trading in digital currencies, you can work 7 days a week, around the clock.
Therefore, the most important factor that you must always pay attention to is time, because you will need to carefully monitor price movements around the clock if you want to succeed in this investment (Calculate carefully the cost of this time on you, your health, and your relationship with others).
9- Look from above and pay attention to these things well
Before trading in any currency, whatever it is, always look at the history of the currency over the years and the nature of the price movement.
The low price should not be your compass in choosing your trading currencies. Always make sure that the main reason for trading a currency is:
- Market cap (the higher the currency, the more suitable it is to trade on it)
- The daily trading volume of the currency (especially if you want to trade that currency in the long term)
You can find out these things by looking at the currency on the Coinmarketcap website. You will find this information in front of each currency.
Do not buy at the current market price. Always place a purchase order at a price lower than the market price (this makes you what is called a market maker), the market maker and not the taker who is attracted to market movements.
The advice of others, in addition to expectations, has no value, even if they are from the best investors around the world. This is because, first, the market is unpredictable, and second, many of these expectations are mostly issued by major investors who want to sell the currency in order to collect their profits, so study the movement of the currency. by yourself.
A currency whose price decreases may not rise again. This is what you have to keep in mind, and it has already happened with many currencies so far. Therefore, be sure to choose the currency according to the two factors above (Market cap – daily trading volume). This is what will enable you to choose the appropriate currency in a way. correct.
10- Mistakes happen in order to learn from them, not to regret
The last and most important piece of advice now if you want to profit from trading digital currencies is that your mistakes mean income for you.
The mistake you made today will not be made again, you will avoid it, and you may make profits from it.
So do not regret what happened if you want to become a successful trader.
I know that everyone has already lost money and that there is not a single person who has been able to profit from all of his trades, no matter how experienced he is in trading.
Now let me take you to the next question, which is…
How to trade in digital currencies?
If you find someone on the Internet telling you that you can work according to fixed trading strategies, then 90% of the time, this person is deceiving you.
This is my personal opinion, but there are actually times when the chart can predict a rise, unlike a fall, which is often unpredictable.
Over the course of more than 3 years of trading in digital currencies, I have not found anyone who can predict the rise or fall of the price with 100% certainty.
This is simply because this market is very volatile and is primarily subject to investment operations carried out by major investors.
for example:
When the price of Bitcoin rose and reached $33,000, many traders declared that this was its highest value.
But…..
Once Tesla, led by its owner Elon Musk, announced that they would invest $1.5 billion in digital currencies.
Do you know what happened?
We have reached $51,000 for the price of Bitcoin at this moment of writing the article.
Therefore, the most important strategy that you can follow in order to profit from trading digital currencies is the statements of major investors.
If you want to trade digital currencies, be careful to follow the news directly as soon as it is announced so that you can take advantage of these opportunities.
In fact, you can also speculate and choose to take risks, but always be careful not to put all your eggs in one (currency) basket.
In fact, there is another method, but it does not work with currencies with a high price, which is the communities of small speculators for each currency. Through purchases in small quantities from a large number of people, this leads to raising the price of that currency and attracting more buyers, and then they sell. .
Where can you trade digital currencies?
You can start trading in digital currencies in more than one way, but as a beginner you will often find yourself facing two options:
1- Trading through an intermediary platform (not specialized in digital currencies)
Here you will start working through a platform that provides a range of currencies in addition to other options such as stocks and currency pairs (Forex) or even through an electronic bank.
Examples of these intermediaries include:
- Payeer Bank (our best choice for beginners)
- Forex platforms (Exness – eToro – and others)
2- Trading through a website specialized in digital currencies
There are multiple options here, and your choice will mostly depend on the features of each platform. There are sites through which you can trade without any identity papers, and other sites where you must present your identity papers in order to start trading through them.
Our selection is here for you:
- Binance (the most famous and does not require any identity confirmation).
- Cex.io (You can work on it and deposit, withdraw, and transfer to dollars and euros, but you need to confirm your identity).
You may want to know: How to exchange digital currencies
Now let me move with you to…
Cryptocurrency trading strategies
There are two ways in which you can trade digital currencies, and both of them depend on timing.
The first strategy: speculation (trading currencies on a daily basis)
This is the preferred type for those who want to make a quick profit.
But always know that risks happen.
For example, you look at the price of the currency on this day in terms of (lowest price – highest price)
You buy when the currency price is closest to the lowest price on that day.
Waiting for the price of that currency to rise slightly so that you can take advantage of the opportunity and sell directly.
And so on every day of your life.
But what if the price of this currency continues to fall? (This actually happens all the time)
You now have two solutions: Either you wait and do not sell until the currency price rises again ( and this is the best ), but you may wait a month, and sometimes more, and it may not rise again.
Either you sell that currency at a loss (and this actually happened to me) and shortly afterwards you may regret it after the price rises again.
Therefore, what you have to do now if you want to trade digital currencies in this way is to reduce your profit margin very significantly so that you can achieve quick profits, even if they are small (this is my personal opinion and not investment advice).
The second strategy: buy and wait
This is what many do is long-term investing.
If you have some money that you do not need at this time, all you have to do is follow a group of currencies and buy that currency at a certain price.
The next step now is to store that currency for a period of time until it rises in price and then sell.
But of course, there is a great deal of risk here because you do not actually know the laws or investment movements that will occur in the market.
Therefore, always make sure to invest what you can afford to lose.
This method also applies to buying tokens (currencies before they are released publicly), but here the risk is very large if you choose tokens that have no future or (a scam) because many of these currencies are just scam projects.
Here you will mainly need:
- A wallet to store these currencies (never store them on the platform).
- Continuously monitor currency prices so that you can sell at the right time at the right price.
I know very well that this guide is very simple, but I do not want to get into complicated matters that you will be able to learn about with time.
My strategy for trading digital currencies
Despite the simplicity of my trading strategy, as you will find here, I find it very suitable for many beginners.
My trading method is based on daily trading.
- First, I follow the price movement over a 24-hour period to find out the maximum and lowest prices.
- After that, I place a purchase order and set the purchase price very close to the lowest price of the currency on this day (my trading operations in any currency are 1/2 of my capital or less).
- I wait until the currency is purchased, and once this happens, I place a sell order, specifying a profit percentage of my amount ( 1% ) of the transaction amount.
- If the currency does not reach this percentage, I leave it for another day (it is usually sold) and if it is not sold, I determine a loss rate of 50% of the currency’s price and I do not sell that currency before that.
- After trading and obtaining this profit percentage, I do not repeat the trading process (greed affects trading decisions) and wait until the next day.
In the past, I used to trade low-priced currencies so that I could buy a large amount of the currency, and thus when it moved slightly, I could make a good profit.
But…..
In the end, I realized that profit from trading digital currencies is not limited to low-priced currencies.
I have already made profits from trading in various currencies with high prices, such as Ethereum, Dash, and even Bitcoin.
This is what I would like to make clear to you. There is no such thing as this currency. Its price has risen, and I will not be able to make a profit from it.
Just make sure to follow the currency’s movement well so that you do not buy when the currency is at its maximum price.
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