Growing Small Accounts

Have you engaged yourself in any crypto trading activity yet? How was it?

It doesn’t really matter whether you are trading using the Binance, Bittrex, HitBTC, Kucoin, Cryptopia, or Poloniex platforms. What matters most is how you build your trading account and how you use it for gaining profits.

Here are some TIPS for getting the most out of your cryptocurrency TRADING ACCOUNT:

1. Always remember that the CRYPTOCURRENCY MARKET tends to be really VOLATILE.

Digital currency’s volatility is caused by different factors such as demand and supply, government regulation, technological innovations, and a lot more.

1. Take advantage of such volatility in cryptocurrencies. FIND WHIPPY MARKETS. When markets are flexible, then you have potentials for gaining periodic profits.

Can you imagine how a WHIP looks like? You will want to enter a coin market that has a whippy structure. Its bends and curves are symbolic of the bouncing trend in prices. Again, you will buy coins when prices are low or at the bottom point of curves. Then you will sell when prices are high.

1. SPOT COIN MARKET TRENDS. Traders apparently analyze trends in order to determine their entry and exit points.

By looking at trends, you also examine the patterns associated with the rise and fall of a certain coin’s price. The trends are usually identifiable by looking at the invisible lines that seem to create either a downward or upward pattern.

1. VALIDATE TREND LINES by checking the following:

2. Support Level

3. Resistance Level

4. Market Volume

5. Price Action Patterns

Remember that following trend lines and trend channels are only among the factors to consider when buying or selling coins. If you see that the market price touches the lower trend line of an uptrend, validate your decision of buying by looking at the other indicators such as support and resistance level, market volume, and price action patterns.

1. CHECK THE TIME FRAME RELATED TO TRENDS.

Higher time frames can reveal a different trend as compared to lower time frames. For instance, you may notice that a coin’s price is going up for 30-minute trade intervals. But when you check for daily intervals, you may be surprised to find out that there is actually a downtrend.

1. SET LAYERS FOR BUY AND SELL ORDERS. KEEP THE ORDER AMOUNT CONSISTENTLY SMALL.

To set your foundation in this trading venture, you can choose to buy only in small amounts. You can hold this small amount for a long term and wait for the market to grow and coin price to increase.

You could also automatically set buy and sell orders at your exchange platform. When setting buy orders, keep the volume small. Also, put the orders in different layers.

For example,

Layer 1 Buy Order = 50 units XRP for $0.25

Layer 2 Buy Order = 50 units XRP for $0.22

Layer 3 Buy Order = 50 units XRP for $0.18

Do the same thing for sell order. Determine your target sell price for each layer.

Example:

Layer 1 Sell Order = 50 units XRP for $0.28

Layer 2 Sell Order = 50 units XRP for $0.30

Layer 2 Sell Order = 50 units XRP for $0.35

Building your trading account and maximizing your potentials from this venture involves the right analysis and a proper investment approach.

By looking for whippy markets that constantly go up and down, you get a chance to build your small account with reduced risks.

Disclaimer: This article describes how we use the Crypto Base Scanner. This may not be considered trading advice.