Make Profit Trading Crypto [beginners]
cryptocurrency bitcoin ethereum trading using 3 best indicators to trade cryptocurencies and altcoin like bat brave polkadot

Make Profit Trading Crypto [beginners]

By Kunal Kishore | Crypto by Ksquare | 16 Sep 2020


Hello everyone hope you guys have fun reading the previous blog Earn BAT TOKEN if not click this link to read. If you like my content please don't forget to like, follow and to tip using the slider at the bottom. 

Let's Continue..

Disclaimer ***

I am writing this article to help people understand how to start trading in cryptocurrencies, but this article is not in any way a financial advise to any one out there. I request you to do your own research before investing, as crypto market is a high risk and high return and highly volatile market. 

 

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What is cryptocurrency trading ?

Cryptocurrency "crypto" trading is way of either increasing the quantity of a particular crypto you hold or to increasing the amount of cash you already hold.

For example : 

  • You have --1 BTC-- , To increase the quantity of btc you will trade against other crypto like Ethereum. When you close the trade in profit you will see you have more than 1 BTC,  it could be any amount depending on the % of profit you booked.

 

  • You have 100$ in USD and you want to increase the cash you have, you opened a trade in crypto for example BTC, so you bought 100$ worth of BTC and sold it for a 10% PROFIT. So now you have 109$, the 1 dollar went to the exchange as a fees for providing a platform for you to trade successfully.

Sounds pretty 🔥 easy isn't it, but it's not that simple guys there are lot of indicators, trend lines, strategies out there that are really good but fails to predict the exact movement of the price. You have to find the resistance and support and trade with a strategy.

 

So how can we make profit $$ trading cryptocurrencies ?? 

Hope fully it's not that difficult as well to start, keep learning and improving with no loss and good profits. Let me show you how that's done.

  • 1st you need to create a watch list of few coins, as taking you are a new trader, I will suggest you to go with coins which are in the top 30 on coinmarketcap, visit the site to see how cool it is. if you want to make profitable trade, then create a list of 10 coin from the top 30 coins. Its because those coins will never ditch you if your prediction goes wrong as they are old, profound and respected projects in the market. I am not saying they can't die, I am just saying that there chance of killing your initial investment is too low.

 

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  • 2nd watch all the crypto charts, look for support and resistance. Support, resistance are formed by joining the wick on the top and bottom of 3 or more candles. for example look in graph below.  Below is a graph of one day, i.e each candle represents 24 hours. In section of candles you can see there are two trend line in blue colour moving parallel to each other.  The upper line represents the resistance and the below line represents the support. 

crypto chart bitcoin ethereum cryptocurrency ripple polkadot

  • The above graph has been taken from trading view website which is one of the best graph providing company full of info and loads of indicators ..!

 

  • 3rd after finding the support and resistance we need an indicator to see the money movement, i.e We need to check whether coin is over bought or not. For that we are going to use the indicator Called "RSI" --> It stands for "relative strength index".  If the graph moves above the pink region the coin is over bought, that means it can fall down any time, that's not a good time to buy the coin. Similarly if the graph is below the pin region  then the coin is oversold, that means it will likely go up from here, this a great time to buy the coin.  You can create a support and resistance lines in the RSI section as well to be more accurate about the movement of that crypto. That's it with the RSI

 

  •   The 4th indicator we are going to use is the MAC-D --> which stands for moving averages convergence and divergence. This basically help in understanding the trend reversal and how powerful it is, but we cannot rely completely on it as it gives too many false signals as well. It consist of three things. 

                      1.  Mac-D line -> Which is the blue line, it helps us determine upward or downward momentum (market trend). 

                      2. Signal line --> Which is the red line and it helps in spotting the reversal, or you can say entry and exit points for our trade.

                      3. Histogram --> It calculates the convergence and divergence of both the lines. In lay man language it helps us understand how                                                       big is the difference in between both the line.

                      4. Zero line ---> This the invisible line between the green(upward) and red(downward) histogram. on which the histograms are                                                           made.

If the MAC-D line crosses the Signal line its a bullish signal but, we have to see how strong is the reversal, to check that see how big histograms are being created. If the MAC-D line crosse the Zero line and the Signal line then it is a great signal to enter the trade. and as the difference starts to decrease, that is if the histograms starts getting smaller that's when we need to close the trade.

crypto chart bitcoin ethereum cryptocurrency ripple polkadot

 

So how do we open a trade to make profit, Simple from using the above information proving tools. .!!

1st -->>  We draw the support and resistance for the graph, then we check the RSI - relative strength index and then we check the MAC-D  for getting the valid entry point. and to see how strong the momentum is of that particular reversal. 

If our candle is at the support or resistance for the crypto, then we will check for the RSI line is in the middle of the pink region or below it, if it is below or in between then it is a good signal for opening the trade(buying the coin). But we still have to check the MAC-D, if the MAC-D is showing that the blue line has crossed the red line and is below the zero line then it is bullish signal with medium strength. And if it crosses the the red and zero line  and the gap is increasing in a ascending order then it is a bullish upward trend with momentum. 

 

Okay guys that's it, I hope I was able to make it as simple as possible for you..

I wish all of you make huge amount of profits, so that you can share some with me in the donations below 🔥🔥✌️✌️😉😉.. will appreciate that.

 

Ethereum & TOKEN -- >> 0x1b5047A8715c7Cf0c8663302CFB512217907C94e

BITCOIN -------------->> 

 

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Thank you

Crypto by Ksquare (Kunal Kishore)


Kunal Kishore
Kunal Kishore

I have been in crypto since 2016 when I was in college 2nd year. Just in 2 years I made profits that help me return the complete college fees to my parents and still managed to hold on to some of the profits, now I am a miner, trader investor and develpr.


Crypto by Ksquare
Crypto by Ksquare

C.K blog is all about cryptocurrencies, crypto knowledge, crypto analysis, bitcoin ethereum charts, news, what's the current trend in the crypto market. Any major change in the atmosphere etc. ****Cryptocurrency investment& trading r subject to market risk, please invest on your own research, we are not giving away financial advices to anyone out there in the crypto stuff. We just want the crypto space to be more understandable by the crypto investors and traders. We will let you know about airdrops.

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