There are several ways to make money trading cryptocurrencies. In this article I will explain a very simple strategy to make money with cryptocurrency that has given very good results.
To execute it you don’t need any knowledge or chart analysis, you just need to be focused and prepared to act fast.
Since 2017 when the price of Bitcoin reached $20,000, the cryptocurrency market has been in a crazy hype. Many who until then had not even heard of this market, went crazy with the huge rise and began to show interest in trading this type of assets.
Since then, much has changed. Many new currencies have been created.
Blockchain and its infrastructure allowed and has allowed the creation of many solutions to make money.
From decentralized finance (DEfi), to NFTs (non-fungible tokens) or play-to-earn games (games that run on the blockchain) where we can earn tokens and/or NFTs (Alien Worlds is an example, as well as Dark Country), much has happened in the sphere of virtual currencies.
However, cryptocurrency trading still remains the most sought after, by most of those interested in this market.
Cryptocurrency trading, unlike other markets, such as Forex and Binary Options, where chart analysis ends up being fundamental to trading, behaves in a different way.
Cryptocurrency price movements work more by news, rumors and developments, rather than by reading charts or indicators.
Strategy to Make Money with Cryptocurrency
For this reason, in this article I decided to write about a strategy to make money with cryptocurrency that I use and that has given good results.
The advantage of it, besides having a very high hit rate, is that it is very simple to use and anyone, even a newbie can use it, because you just need to understand how it works and be aware of it.
Why does it work?
Today there are several cryptocurrency exchanges. However, there are two that are the largest and that end up being the ones with the greatest impact on the market.
We are talking about Coinbase, which is an American exchange listed on the US stock exchange, and Binance (link) which is currently the number one in users and daily transaction volume.
As every day new projects appear, it is normal that the vast majority of these coins, appear first in smaller exchanges and after showing some interest or that is a project with value that are then listed in one of the big ones (Coinbase or Binance).
When a token (cryptocurrency) is listed in one of the big ones, at the moment of being announced it ends up having a great valuation (usually above 100%), so the strategy is simply to know quickly a new listing and be able to buy even before this token is listed in Coinbase or Binance.
How to use the strategy to make money with cryptocurrency:
In the next steps I will show you how to use the strategy. Be advised that I use certain exchanges to be able to put this strategy into practice. You may prefer to use other exchanges, it is always at your will.
The first step is to find a way to know as soon as possible that one of the major exchanges will list a new cryptocurrency that already exists on the market on other smaller exchanges.
The way I found is through this site: https://cryptocurrencyalerting.com/
It sends alerts that we create (it is very simple) to receive an alert every time there is information about a new listing.
This alert can be by: email, cell phone, Telegram, Discord, SMS, browser notification, etc. I chose email, because I always receive notification of new emails on my cell phone, but you have to choose the method that allows you to see the notification as soon as possible, because the secret of the strategy is in how quickly you see the information and buy this asset.
In the image below you can see my two alerts. I did one for Coinbase, and one for Binance, which are the two main exchanges as already explained.
To run the alerts, you log in to the site and open an account. It’s fast, simple, and free.
Once you have the account, go to the Listings menu and choose the option: Coin Listing Alert.
There in the box choose the method (I use email as I explained, but you should choose what is best for you), then choose the option “any coin” and then the exchange by choosing the option Coinbase Pro.
Then just click SET ALERT
Do the same a second time, but this time choose Binance.
The two images below show the setup of my two alerts.
This is the first step.
The second step is to have an account at a smaller exchange, the kind that lists a lot of coins, but is safe at the same time.
And pay attention the safety of your accounts, because there are several that are not very secure, and some new ones that are popping up may not even be honest.
Another important thing is that these exchanges have a mobile application, because sometimes you just use your cell phone, or you may just have a computer, but be away on your cell phone and then you miss an opportunity if the exchange doesn’t have an application.
My favorite, both for security and low fees is GATE.IO.
If you use GATE.IO you must buy some GT Token which is the exchange’s currency. By having GT tokens in your wallet, you will pay less fees when buying and selling other currencies.
To activate the option go to your GATE.IO profile and at the bottom click on: Use GT to debit the trading fee.
Once you have an account opened at one of these exchanges, such as GATE (you can open an account by clicking the button below), you must have a balance in USDT to be able to buy the cryptocurrencies that will appear in the notifications you will receive.
This step is the execution of the strategy, which involves receiving the notification of a new coin listed in the big ones, and going to your exchange (in my case GATE.IO) and buying with USDT that coin as soon as possible, before it goes too high.
One important thing that you will see over time is that the moment the information comes out it jumps, sometimes 100%, 200%, 300% and more, but then it just drops.
If you are quick and buy right away in the next 2 or 3 minutes, you can still sell right away and that ends up being what pays off the most, because for 5 to 10 minutes it has a tendency to increase.
Sometimes we can make 100% or 200% profit in 2 or 3 minutes.
In case you can’t sell right away, leave a pending order to sell at a profit because when it actually starts to trade at Binance or Coinbase it should make a new valuation.
But the ideal is to be quick to buy and to sell.
If you manage to buy and sell in the first 5 minutes, you can likely get the biggest profits.
Strategy to Make Money with Cryptocurrency : Example
Below you can see this strategy to make money with cryptocurrency in practice. I’ve used a coin that was listed on Binance.
Although I profited almost $300 from this operation, it could have been better, but 2 things happened that caused me to waste time performing the task:
1 – When the notification came I was already in bed, as it was late. And since I was about to fall asleep, it took me some time to react and see what it was.
2 – At that moment I had no USDT in my portfolio, as I had bought several coins, as the market was up in those days. I had to sell the GT tokens so I could then buy the notification currency.
In all this process I took about 2 minutes, but these two minutes were enough for me to lose money, because the token (in this case the $CHESS) is being traded at U$ 3.00 and when I bought it, it was already at U$ 6.82. If I had been faster I could have bought it at U$ 5.00 and doubled my profits.
In the image below you can see the notification received by email:
This is the email format we received, with the currency and on which exchange it will be listed.
In the image below you can see the graph of the rise and then fall that the price made in a few minutes.
As I mentioned above, if I had been faster I could have bought at $5 and sold at $10, being that I bought 242 coins, I could have had a profit of $1200 in minutes, but well, we can’t be sad with a profit of about $280, can we?
On the chart we see that the price was hovering around $3 and, in a flash, it skyrocketed, reaching as high as $10 and then in the next few hours falling back down to $4.
This strategy to make money with cryptocurrency works depending on how long you take between notifying and buying the asset, as well as when and at what price you sell.
From my experience, if applied well (when I say well, I mean quickly) the profit varies between 20% and 100%, which is excellent if you think that the buying and selling happens in a couple of minutes.
In the image below you can see how was the example of the application of this strategy to make money with cryptocurrency.
1 – I bought 242 tokens at U$ 6.82 at 10:41 AM (Asian time, here it was dawn).
2 – I put it on sale at U$ 12, but I observed that the price didn’t want to go higher, so I cancelled the order and decided to put a lower value.
3 – I then placed at U$8, which was the price at which it was sold.
4 – The total purchase value was U$ 1.656 and the sale U$ 1.934, what gives a difference (profit) of U$ 278, which is not bad, because it was in a few minutes, and still for having taken time to place the operation, as I explained above.
We hope you enjoyed our Strategy to Make Money with Cryptocurrency!
What is the best strategy to make money with cryptocurrency?
There are several strategies for making money with cryptocurrencies, but this is one of the best because it is simple, fast, and that any newbie without any knowledge can use.
Can I use this strategy with any device?
Yes, but ideally you should choose one with the features we explain in the article.
How much money can I make with this strategy?
On average we can gain between 20% to 100% in a few minutes with it.
What are the risks of capital loss with this strategy?
What can happen is that you buy at an already very high price and then the asset price goes down. But as it is a coin that is entering one of the major exchanges, it means that it is a project with potential, so in the mid term it is almost certain that it will end up going up and you will end up recovering the investment.
If the value drops, what can I do?
Usually these coins when they join Binance (especially this one) will have a staking period. You can transfer your balance of the new coin there and staking and thus get daily interest for having the coin.
You can also buy some more at the cheaper value so that the average price is lower.
What can happen is that you buy at an already very high price and then the asset price goes down. But as it is a coin that is entering one of the major exchanges, it means that it is a project with potential, so in the medium term it is almost certain that it will end up going up and you will end up recovering the investment.