Unlocking Daily Profits: A Beginner’s Guide to Making $100 Trading Cryptocurrency
Earning $100 a day trading cryptocurrency might seem like a distant dream for beginners, but it’s an achievable goal with a simple, structured approach. As the video above expertly demonstrates, you don’t need to be an advanced trader to start generating daily income from the crypto markets. This comprehensive guide expands on the video’s core concepts, providing a deeper dive into the tools and techniques you need to implement this easy-to-follow strategy. We’ll explore how to identify opportunities, utilize essential technical indicators, and execute profitable trades, helping you navigate the exciting world of digital assets.
Navigating the Crypto Market: Finding Opportunities in the Dip
The cryptocurrency market is known for its volatility, often experiencing significant price swings. While “blood baths” – steep price declines across major coins like Bitcoin and Ethereum – can be intimidating, they also present unique opportunities for strategic traders. Our simple method focuses on identifying these dips, particularly in promising altcoins, to make smart entry points.
Using CoinMarketCap to Spot Potential Buys
Your first step in this **beginner crypto trading** strategy involves CoinMarketCap.com, a free and essential resource. Most beginner traders initially view prices in USD, but for altcoin trading, it’s more effective to switch your base currency to Bitcoin (BTC). This allows you to see how altcoins are performing relative to Bitcoin, which is often how they are traded on major exchanges.
Imagine if you could quickly see which coins have experienced the biggest drops against Bitcoin in the last 24 hours. CoinMarketCap makes this possible. Simply click on the ‘BTC’ option to change the primary currency view. Then, sort the list by “Change in 24h” twice. This will reveal the coins with the largest percentage decrease, often signaling potential buying opportunities as these assets might be “oversold.”
Identifying Quality Altcoins for Your Strategy
Not every coin experiencing a dip is a good buy. It’s crucial to filter for quality. Look for coins within the top 5 to 10 on the biggest losers list that possess:
* **Reasonable Volume:** A 24-hour trading volume of at least $500,000 to $1 million USD, or roughly 50 to 100 BTC, indicates sufficient liquidity to enter and exit trades easily. If the volume is too low, you might struggle to sell your assets quickly at your desired price.
* **Strong Fundamentals:** While this is a simple trading method, a quick check on the project’s utility, team, and roadmap can prevent you from investing in a dying project. Think of coins like Siacoin, mentioned in the video, which offers decentralized cloud storage and has sustained interest.
Mastering Basic Technical Analysis with TradingView
Once you’ve identified a promising altcoin, the next step in our strategy to **make $100 a day trading cryptocurrency** involves basic technical analysis. TradingView.com is a powerful, free platform for this purpose. You don’t need to be an expert to use it effectively; just focus on a couple of key indicators.
Understanding Bollinger Bands for Price Action
Bollinger Bands (BB) are a fantastic tool for gauging price volatility and identifying potential support and resistance levels. They consist of a middle band (a simple moving average) and two outer bands that expand and contract based on market volatility.
* **Setting Your Bands:** The video suggests standard settings: a length of 25 periods and 2 standard deviations.
* **Interpreting the “Bounce”:** Think of Bollinger Bands as elastic channels. When a candlestick (price bar) touches or briefly breaks below the lower Bollinger Band, it often suggests the price is oversold and might “bounce” back upwards. Conversely, touching the upper band can indicate an overbought condition, potentially leading to a downward correction.
Leveraging the Relative Strength Index (RSI)
The Relative Strength Index (RSI) is another momentum indicator that helps determine if an asset is overbought or oversold. It oscillates between 0 and 100.
* **Standard Settings:** An RSI setting of 14 periods is common, with key levels at 30 and 70.
* **Identifying Signals:** When the RSI drops below 30, the asset is typically considered oversold, signaling a potential buying opportunity. When it rises above 70, it’s generally considered overbought, suggesting a potential selling opportunity.
Combining Indicators for Stronger Signals
For a more robust signal, cross-reference the Bollinger Bands and RSI. Imagine a scenario:
* You find an altcoin that has dropped significantly on CoinMarketCap.
* On TradingView, you observe its candlesticks touching the lower Bollinger Band.
* Simultaneously, the RSI has dipped below 30.
This combination provides a stronger indication that the asset is oversold and poised for a bounce, making it an ideal entry point for your **simple crypto trading method**. Always cross-reference multiple timeframes (e.g., 1-hour and 4-hour charts) to confirm trends.
Executing Your Trade: Buying and Selling on Bittrex (or Similar Exchanges)
With your identified altcoin and confirmed signals, it’s time to execute your trade on a cryptocurrency exchange like Bittrex, Binance, or Bitfinex. The video walks through using Bittrex as an example, showcasing the practical steps.
Funding Your Account and Finding Your Coin
First, you’ll need Bitcoin (BTC) in your exchange wallet. Most exchanges allow you to deposit BTC easily by generating a deposit address. Once funded, navigate to the BTC markets section of your chosen exchange and search for your chosen altcoin using its ticker symbol (e.g., SC for Siacoin).
Placing a Limit Buy Order
Instead of a “market order” (which buys immediately at the current market price), a “limit order” allows you to specify the exact price you wish to buy at. This is crucial for maximizing your profit potential in a **beginner crypto trading** strategy.
* **Specify Amount:** Decide how much BTC you want to invest (e.g., 0.1 BTC).
* **Set Your Price:** Based on your technical analysis (e.g., lower Bollinger Band and RSI signals), set your desired buy price in satoshis (fractions of Bitcoin). If the current price is 140 satoshis and you believe it will drop slightly further, you might set a limit buy at 138 satoshis.
* **Confirm Order:** The exchange will show you how many units of the altcoin you’ll receive at that price. Confirm your order, and it will appear in your “open orders” until the market reaches your specified price.
Executing a Limit Sell Order for Profit-Taking
Once your buy order is filled and you own the altcoin, the next step is to set a limit sell order. This is how you lock in your profits and achieve your goal of making $100 a day.
* **Determine Your Target:** Look for previous support or resistance levels on your TradingView chart. For instance, if you bought Siacoin at 138 satoshis and see previous resistance around 155 satoshis, you might set your sell order slightly below that, perhaps at 153 satoshis, to ensure it gets filled quickly.
* **Input Quantity and Price:** Enter the total units of the altcoin you wish to sell and your target sell price in satoshis (e.g., 153 satoshis).
* **Calculate Profit:** The exchange will display your potential BTC profit. For example, selling 72,000 Siacoin at 153 satoshis after buying at 138 satoshis (for 0.1 BTC) could yield a profit of 0.01 BTC, which, depending on Bitcoin’s price, translates to over $100.
* **Place Order:** Confirm the sell order, and it will remain in your open orders until the market hits your target.
This entire process, from identifying the coin to placing both buy and sell limit orders, might take only a few hours to complete for the trade to be fulfilled.
Refining Your Daily Trading Routine
This method for **making $100 a day trading cryptocurrency** is designed for consistency. It’s not about hitting one massive trade, but rather consistently executing smaller, profitable trades.
Consistency is Key to Daily Profits
By repeatedly applying this simple strategy – finding “losers” on CoinMarketCap, verifying with Bollinger Bands and RSI on TradingView, and setting limit orders on an exchange – you can accumulate daily profits. The video shows how a single trade can easily net over $100. Repeating this process, perhaps even multiple times a day with different altcoins, can push you towards the $100-$200 daily profit range.
The Importance of Risk Awareness
No trading strategy is 100% foolproof. The crypto market is influenced not just by technical analysis but also by media sentiment (FUD – Fear, Uncertainty, Doubt), news, and broader economic factors. Always remember:
* **Start Small:** Only trade with capital you can afford to lose.
* **Do Your Own Research (DYOR):** While this method provides a solid framework, always perform your own due diligence on any coin before investing.
* **Not Every Trade Works:** Markets can be unpredictable. There will be false signals, and some trades won’t hit your target. Learn from these instances and refine your approach.
This **simple crypto trading method** provides a solid foundation for beginners to confidently enter the market and start generating consistent income. With practice and discipline, you’ll be well on your way to making significant daily profits.
