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How To Make Money Spot Trading In Binance: No Skills Required
A beginner-friendly guide on how to make money spot trading on Binance. (7 min read)
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The cryptocurrency exchange platform Binance is simple to use and provides a wide range of trading choices, making it a fantastic alternative for new traders looking to make money. Spot trading is one such approach traders use to earn money.
Spot trading is the act of purchasing and selling an asset at its current market value, such as money or cryptocurrency. In other words, rather than entering into a contract for future delivery, it is the immediate purchase or sale of an asset. By purchasing low and selling high, one can profit from the state of the market when they engage in spot trading.
Spot trading on Binance enables users to purchase and sell cryptocurrencies at the current market price on the exchange platform. Contrary to popular assumption, trading doesn’t necessarily require a specific degree of education or experience; anyone can profit from spot trading on Binance.
Anyone can engage in the cryptocurrency market and even make money if they have the correct tools and methods. In this article, we will discuss one such tool and method that is very easy to use and can offer returns. The tool you can deploy to earn money in Binance is Binance’s Spot Grid Trading feature.
In the grid trading method, a trader creates a grid of buy and sell orders at various price points. As the market changes, the orders are then automatically modified, enabling the traders to profit from the market’s volatility. It is a kind of trading that focuses on taking advantage of market volatility rather than attempting to predict the market’s direction.
Let’s begin. Remember, in order for this work, you should already have some amount in your Binance account.
1. Log in to your Binance Account: Click on Trade → Strategy Trading
2. Choose Spot Grid, if you use Binance App, maybe you have to go to Trade→Spot
3. Tap on Manual, Use Arithmetic.
Note: Before selling the Upper and Lower price for a cryptocurrency, make sure the crypto is a bit of strong crypto. Meaning, the prices of the crypto does not undergo a sudden steep downfall or steep rise. Choose the coin which market undergoes small fluctuations like a zigzag pattern, the more the fluctuations, the more the grid creation, the more chances to earn profits. Go to USDT coin pair option and then search for your suitable coin and then select the coin.
You can also look for patterns of different cryptocurrencies by visiting site such as CoinMarketCap and CoinGecko.
- Upper Price and Lower Price, refer to the highest and lowest price levels at which you can set your buy and sell orders. The upper price is the highest price at which you are willing to buy the cryptocurrency, while the lower price is the lowest price at which you are willing to sell it. Tip, Set the Lower price to slightly higher than the market lowest price for the day to reduce the risk. To see the lowest and highest price of a crypto coin in the Binance market, you can navigate to the trading page for the coin you are interested in.
- Grids: Choose the number of grids you want to invest. The number of grids you want to invest will depend on the amount that will showcase on the Investment bar, denoting the minimum amount required to deploy the number of grids. Choose the number of grids according to your investment budget. Example: for setting 7 grids, you may need to invest $100 on the Investment bar.
- Grid Triggers: These triggers are dependent on the upper and lower price levels that you have selected for the grid of orders, and they are triggered at specified price levels. For example, if the grid trigger is set to buy at $10,000 and the market price of the coin reaches $10,000, a buy order will be placed automatically at that price.
- Stop Trigger: It’s similar to stop loss in the stock market. When the market price of the coin reaches the specified stop trigger price, yours open position will be closed automatically, limiting the amount of loss incurred. For example, if a trader enters a trade at $10,000 and sets a stop trigger at $9,500, if the market price of the coin falls to $9,500, the trader’s open position will be closed automatically, limiting their loss to $500.
- Take Profit: It is a feature that allows the trader to set a target price at which they want to exit their trade and take the profit.
- After you have done setting the prices, Tap on Create then confirm.
4. Track Orders and Profits in the Running and History respectively.
And that’s pretty much it. This technique is low risk because it is carried out by Binance bot, which monitors slight fluctuations in the prices and will apply your order once it finds market conditions are suitable. Due to its ability to limit the potential loss and secure profit, the automatic closing of positions at the stop loss and take profit levels. The risks are relatively low.
In conclusion, Binance spot grid trading is an effective way to profit from the cryptocurrency market. It is easy to use, low-risk, and very lucrative. Traders can profit from market volatility and turn a profit even in unpredictable markets by selecting a range of prices at which to join and exit trades. Traders can safeguard earnings and reduce potential losses by setting stop loss and take profit levels. Overall, Binance spot grid trading is a great option for beginners looking to make money in the cryptocurrency market.