The world’s response to the coronavirus has shaken the global economy with millions of people out of job and no income. While many countries are currently facing a lock down due to health measures, no one is really sure when industries will open again. As people spend more time at home, many could have discovered an interest in the methods of digital currency while trying to find ad hoc jobs and opportunities to generate income.
If you are into cryptocurrency trading or relatively new to the market, then you need to start developing your own strategies, and do your own market research to start making your profits with minimal loss. On Monday, DigiFinex reached out and held an online interview with one of their most successful traders on the platform.
The following is a comprehensive list of how the 2 year user of DigiFinex Zack, safely earned cryptocurrencies by taking some initiatives and effort to understand the trading tokenomics. (Zack currently earns up to 500USDT daily).
Using The Grid Trading Strategy
A good grid trading strategy can be used to combat the rapid market, the operation is simple and easy. This grid system is seemingly quite popular among crypto traders because it’s easy to visualise. However, it is important to know that there’s no guarantee. So, If you want to succeed using this strategy, you must understand and know how to execute the system correctly. I will first break the grid trading strategy down to 3 points to help you understand better;
I. Market Structure/ How Does It Work?
II. Fundamentals
III. Market Mechanics
What I like about this strategy is that it pursues market volatility which helps us reduce the pain of having to place trades manually. It helps you get a good return $ even during volatile market conditions. It also eliminates the need to predict the market’s direction, making the choice quite simple. This would come in handy especially for traders who are unfamiliar or new to the market.
I. Analysing the Market Structure/ How Does It Work?
As someone who used to be unfamiliar with the market, I started seeking profits through natural market movements by positioning buy stop orders and sell stop orders using Spot Trading. This is performed on a predefined market distance, usually with a preset size of take-profit with non stop-loss. This kind of trading eliminates the variable of knowing the direction of the price movement. I wanted to avoid complications in money management conditions because as a trader, we had to manage multiple trades at the one time. Thus I needed to seek a way to trade smart.
My trading principles are simple, as a self starter it is important that we must not be greedy to make impulsive decisions when it comes to our assets. I started with only doing spot trading with DigiFinex before venturing onto other trading methods.
I would like to state, there’s no need to guess where the market is going. It’s normal for cryptos eg; BTC to fluctuate up and down by $100 in a day. So we wouldn’t have to worry about the trend; hence, I do not go short because there wouldn’t be much profit, however the risk loss on the other hand is unlimited. On the other hand, If the spot is quilted, there could be a 3 x leverage in profit.
II. Fundamentals Implementations
After understanding how the market works, start creating a Simple Grid Trading Strategy That Works then start deciding on a starting point from the market chart.
III. Applying the Market Mechanics
It’s common for traders to lose their way in the market. Often, when traders go long, they are usually trapped and do not know when to close their orders. This is caused by the fear of losing potential profits or losing even more assets. One thing to take into consideration is to trade what you can afford to lose. The fear of losing has become a big dilemma for many thus namely, you must possess the ability to psychologically deal with losing positions. Though it can be a bit of a drawback, Being a good trader has less to do with only profitability, but also the ability to learn. We can always turn this into a positive learning experience.
Personally I prefer to go short and make small profits in hundreds. Because I can continue to trade with multiple funds and gain experience along the way. I do go for long positions from time to time.
Why I chose DigiFinex:
DigiFinex offers a variety of trading services catering to traders with different levels and experience in trading. There are no handling fees for pending orders, and on top of that, I can also receive dividends and frequent event rewards. I feel safe entrusting my funds in the exchange due to its high securities and trusted services.
And of course, who doesn’t love money? Within just two years, I have evolved from a crypto noob to now earning nearly $14200 USD!
Join me along with many others and learn how to start trading with DigiFinex!
Header Image Source: Unsplash
