Making money on Binance requires certain skills or factors that should be looked into. Some of these factors include; trading or investment capital, trading expertise, and market condition. It is crucial to understand that, cryptocurrency trading attracts some level of risk. Making profits from the market consistently is not guaranteed as losses also may involve sometime.
Following the factors mentioned in the above paragraph, making $100 from Binance daily is not guaranteed, and the same with other cryptocurrency exchanges. Since there is no steady assurance of making $100 from Binance consistently, most profitable crypto enthusiasts employed the methods or strategies of making money steady from Binance using the below techniques;
- Scalping: It is a short-term trading technique in which traders try to profit from the market on little price movement change. Scalpers frequently initiate and close numbers of trading positions a day to repeatedly profit from modest profits. A scalper trader requires a deep knowledge of the market, how to execute a day on profits, and an understanding of market dynamics.
- Arbitrage: This involves taking advantage of price differences for the same coin on different exchanges. A trader using this technique makes profits from the price difference when they purchase a crypto asset at a cheaper price on one exchange (e.g. on Kucoin) and sell it at a higher rate on another exchange (e.g. Binance). However, possibilities of arbitrage trading are frequently transient and necessitate swift action in addition to cautious monitoring of numerous exchanges.
- Day Trading: This is the buying and selling of cryptocurrencies using a specified entry and take-profit in other to make profits within a day. In other to make a trading decision, to know the kinds of crypto to trade or profit from, a trader uses chart indicators, technical analysis, and sometimes fundamental analysis. To be a day trader, you need the skills and the ability to respond to market volatility.
- Using Automated Trading Bot: A limited number of traders use automated-trading bots, which carry out trades by pre-established strategies and algorithms. This bot can automatically place trades evaluate data, and monitor the market to know when to take profits and exit a trade.
Despite evaluating the techniques above and irrespective of the technique to use, it is necessary to approach the market with care and consider the below;
- Have proper knowledge of technical analysis, risk management, and market concept,
- Always set proper entry, take-profits, and stop-loss on your trades,
- Endure a proper risk management system and always use 10% of your trading capital,
- Don’t trade more than two trading positions.
Consistently making of $100 from Binance is not guaranteed because of the market volatilities, manipulations, and sediments. Putting into practice certain techniques such as; scalp trading, day trading, arbitrage, and the use of automated trading bot can help an individual stay profitable which help to minimize loss.
It is essential to practice proper risk management as that will help to give a hedge against market manipulations, volatility, etc.