While holding Bitcoin or any major Altcoin can be a lucrative long-term strategy, the real fun is trading the wild unruly volatile swings of Altcoins. You can make faster gains and ride the market. Trading pairs can have huge swings upwards and potential gains of x2 x 4 and up. If you play your coins right, you can make a few trades and take out the original money you put in. This requires careful planning, reading the news, watching trends, comparing opinions, and DYOR.
Coinbase is mostly for Holding and doesn’t really provide the right tools for professional trading. Once you’re ready to step up and try your hand at strategy trading, Coinbase has it’s own exchange called GDAX (Global Digital Assets Exchange). You can seamlessly transfer your BTC, ETH, LTC, or BCH to this exchange and start trading with live charting tools. However, GDAX is limited to only these top trading pairs and you’ll FOMO on all these other Altcoins you’ll hear about. Such as Tron (TRX), Ripple (XRP), Cardano (ADA), Verge (XVG) and so many more. These coins and much more can be found at Binance.
Due to the increased popularity of Bitcoin and the amount of volume coming through the most popular exchanges, many have suspended new user registrations. So you may be looking around online and seeing references to exchanges you can’t get into. Especially if you’re in New York, options are limited. Binance is a phenomenal alternative that offers quality altcoins with lots of volume and trading action.
Not to mention their trading fees are much lower than other exchanges. They have their own coin BNB, which can be used to cover fees and 50% discount. A key detail and please do not skip this advice. As soon as you’ve transferred funds to Binance and before entering your first trade, buy some, even if only a minimal amount of BNB. If you don’t, you’ll pay the 0.1% trading vs 0.05%. The fee comes out of your BNB balance, failing to do this, the fee comes from the coin you’re purchasing and you’ll be left with coin fractions, which you can’t withdraw or trade. This can be incredibly infuriating, so please make sure to get some BNB, it also has a valuable future and worth holding. And that’s simply done by creating a small market order, just enough to cover some fees.
Binance is a professional platform, based out of Hong Kong. To be clear and not to offend, Hong Kong is not China and you don’t have to worry about regulations or government shutting down the exchange. They provide a beautiful layout, readable chart, trading tools and very pleasant interface. You have the ability to set limit buy and sell orders. Market orders are done on the spot and based on the market price at that time. With limit orders, you can choose your price, the amount you want to lock in and Binance will do the rest. That is of course if the market hits your target price.
Also, keep in mind, there’s an imposed minimum trade amount for Limit Orders. For instance, the minimum amount of BTC you can trade is .002 BTC (as of this writing). These minimums do not apply to Market Orders, however, you’ll want to take advantage of limit orders to be an efficient trader. Having outlined that, trading with anything less than $100 will seem like you aren’t getting anywhere quickly. Most trades take a few days to complete and your funds will be locked up waiting to complete a bull run (when the price swings upwards). In most cases, it’s wise to set Stop Losses, in case a bearish run (price swings downwards) or dump (when price plummets suddenly). A Stop Loss is selling above a threshold, basically the most you’re willing to lose on a trade. Set your gains high and your losses low to stay ahead.
It’s worth mentioning, Binance offers a very well made app for smart devices. So you can trade from your phone on the go. For PC users they have a Desktop app. Unfortunately for us Mac users, it’s not available on macOS, but the web browser version seems stable enough. I’ve noticed it runs better in Safari over Chrome. There isn’t many exchanges offering such elaborate tools.
Just probe around and look at some of the charts, you’ll see swings on altcoins with gains of 2x 3x. While this is uncommon and there’s a lot of pump groups behind these, play your cards right, get in at the right time, and you can double your money. When you’re ready to move your coins over from Coinbase / GDAX to Binance, I’ve provided steps in link below.
There are many strategies and hours of research should be done before you invest large sums of money. $100 is a safe amount to make some small trades to get the hang of things. As you dive deeper into this world, you’ll learn about technical analysis, reading charts and using indicators. Some of the strategies you may hear about are position trading, margin trading, momentum trading, and for the most eager, day trading. Check out links to some knowledgeable recommendations I’ve posted below.