How to make money with cryptocurrency in simple terms
The most popular and at the same time most profitable way to make money on cryptocurrency is buying and selling tokens.
In simple terms, you earn money on the price changes of your chosen cryptocurrency, and thanks to modern technology, you can earn money on both the rise and fall of its value.
Trading cryptocurrency isn't difficult; even a novice unfamiliar with exchange trading can understand the technical aspects.
As for strategy, things are a little more complicated, but with a strong desire you can cope with this task, the main thing is not to make deals at random.
But the most common question I get on this topic is: where to start? I'll try to put together a simple quick-start guide.
Instructions – How to Make Money with Cryptocurrency
- Register with one of the exchange brokers – Choose a broker for cryptocurrency trading. Verify your identity.
Why choose a broker instead of a crypto exchange? A broker offers far more trading opportunities, doesn't send information about you to the tax authorities, better customer support, €20,000 bankruptcy insurance, a demo account for practice, and the ability to use indicators and trading robots.
- Download a trading platform to open trades. I recommend MetaTrader 4, which can be used on a computer or laptop. It's much easier to master the trading platform's functionality on a larger screen. You can download it for free from your broker after registering.
- Let's try making money with cryptocurrency using a demo account – instructions for opening a trade on the trading platform:
Once you've learned how to technically open trades to buy or sell cryptocurrency, you can move on to the strategy itself.
A simple strategy for making money with cryptocurrency
- Choose a popular coin: It's best to start with BTCUSD or ETHUSD, as they tend to have less volatility than smaller tokens.
- Open the H1 or H4 chart: It is better for a beginner not to trade on M1/M5 - there is too much noise there.
- Determine the trend direction: If the price is gradually rising and making new highs, look for a Buy. If the price is falling and making new lows, look for a Sell.
- Wait for a pullback: Don't enter immediately after a sharp move. It's better to wait for the price to slightly pull back to the previous level.
- Trade entry: Buy – after an upward pullback in the trend. Sell – after a downward pullback in the trend.
- Stop Loss: Set the Stop Loss at the nearest low when buying or at the nearest high when selling. Stop loss size.
- Take Profit: Take Profit can be set 1.5–2 times further than Stop Loss.
For a beginner, it is better to initially trade only on a demo account until a stable result is achieved after at least 20–30 trades.
Many people wonder how to make money with cryptocurrency in simple terms. In practice, it all comes down to the basics: follow the trend, avoid emotionally driven trading, and always limit risk.
Even a simple strategy can yield results if you maintain discipline: wait for a pullback, enter in the direction of the movement, and set a stop loss early. It's important not to try to make a quick buck, as rushing is what often leads to losses.
Therefore, a sensible approach is to first practice your skills on a demo account and only move on to live trading once you've gained stability. Ultimately, those who profit are those who act consistently, rather than those who try to catch the perfect entry point.
You can find other useful information on cryptocurrency trading here – Cryptocurrency Trading
