16 July 2020

Meta description: In this article, we will be discussing ways you can make a profit when trading cryptocurrency on Binance, Gemini, and Coinbase.

How You Can Make A Profit Trading On Binance, Gemini, And Coinbase

The fact that cryptocurrency is decentralized makes it very difficult to anticipate future market movements. This is because the slightest rumors can influence the behavior of crypto traders and therefore affect the price.

Everyone has an idea about what cryptocurrencies represent. However, few understand how cryptocurrencies work and how to increase wealth in crypto trading. We will be looking at how to make a profit by trading on Binance, Coinbase, and Gemini.

Coinbase

The American exchange Coinbase released a set of tools that provides free information on trading behavior and price correlation to all Coinbase customers. The idea is that researching what experienced traders are doing could be useful for new investors to make a profit.

Coinbase’s objective is to provide precise and objective measures regarding the use of cryptocurrency. This is based on the aggregated and anonymized activity of millions of Coinbase customers.

Following the signals below is a sure way to make a profit while trading on Coinbase.

  1. Activity signal from the main holders: observation of the number of Coinbase users whose balance is in the top 10% who have had net increases or decreases in their positions over the past 24 hours. The signal is updated approximately every two hours. They can’t predict what will happen to crypto prices, but they can tell users how the biggest holders have traded.
  2. Typical timeout signal: Represents the average number of days a client retains its assets before selling it or transferring it to another wallet/account.
  3. Popularity on the Coinbase signal: At the same time, Coinbase measures the popularity of each tradable asset, i.e. how many customers have a particular cryptocurrency. Typical hold time and popularity signals are updated every 24 hours.
  4. Price correlation: This signal seeks to know whether the prices of different assets are correlated, i.e. how their prices have evolved compared to each other. If the correlation is weak, it means that prices are generally not linked. If the correlation is highly positive, it means that prices tend to move in the same direction. At the same time, if they are strongly negative, they tend to move in the opposite direction. The signal is updated every 24 hours.

Remember that whatever the data, price correlations are based on the past and do not predict future correlations.

Binance

A great way to make a profit while trading on Binance is to buy and sell different cryptocurrencies. Binance allows you to pay in cryptocurrency to buy another virtual currency. For example, you can buy Bitcoins by trading Ethereum.

With this trading method, you must first deposit a cryptocurrency in your Binance account, and then have it available as a trading currency. Thanks to its numerous partnerships, you can directly buy cryptocurrencies with different fiat-to-crypto currencies. Also, you can store them on the official wallet (secure wallet) of the Trust Wallet exchange, and withdraw them in “standard” currency via Binance Jersey.

The most popular and listed publicly traded assets on Binance are listed below:

  • BTC (Bitcoin)
  • DASH (Dash)
  • ETC (Ethereum Classic)
  • ETH (Ethereum)
  • LTC (Litecoin)
  • BNB (Binance Coin)
  • XRP (Ripple)
  • XMR (Monero)
  • EOS (EOS)
  • BCC (Bitcoin Cash)

 

Gemini

You can start making a profit with Gemini from the moment you deposit and click the trade button. This is because the system places large exchanges when prices both fall and rise.

A professional can also make a profit from the first minute of starting a trade. In other words, there is no fixed time before seeing the results. It all depends on the nature of the market, the trader’s experience, if it is manual, and the underlying factors, taken into account by the algorithms of the system.

Gemini communicates with the various exchanges around the world by extracting vital data, analyzes information and factors to take a favorable position, which is profitable for the user.

The sales forces of volume, cost of digital assets, and time play an important role in determining the position to adopt in a trade.

There are two options for its operation: manual and automated options. As a user, you have the freedom to choose when they start trading with the software.

  • Manual trading: According to your analysis and following the software guidelines, you are the one who opens and closes trades.
  • Automated trading: According to market analysis and indicators, the software places operations autonomously. The system itself opens and closes them at its discretion, according to a set of rules predetermined by you.

 

Summary

To sum it up, trading is undoubtedly an expansive area for potential investors. It can certainly be difficult to anticipate future crypto market movements. Despite this, cryptocurrencies have modified traditional financial models with their innovative character, making it an enticing new endeavor.

 

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Edmund McCormack
Tech industry veteran and blockchain technology investor. Simplifying cryptocurrency for almost a decade.

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