1. How to make money on cryptocurrencies?
2. Volume analysis of BTC from the Chicago Mercantile Exchange (CME).
3. Trend analysis
4. Japanese candlestick analysis
5. Conclusion. Statistics
1. How to make money on cryptocurrencies?
To make money on cryptocurrencies, traders should become professionals or copy actions of experienced traders. We have already mentioned that there are three main resources – intention, time, and money. Today, we will focus on money.
Trader is a profession!
Is it possible to become a professional in this or that sphere without investing money in education? Can anyone become a lawyer, doctor, or an engineer for free? Of course, nowadays, it is almost impossible. To get a good job, one should be well-educated. If you decide to become a professional trader, you need to allocate some amount of money for education. Thus, we need money for the following:
- Educational courses. Future traders are recommended to take a variety of courses to learn different trading systems and approaches. The more you know about the market, the better you can understand it.
- Books on trading. Read the books of professional market participants who have achieved success in their business. Set a goal of reading one book every month. In this case, you will actively grow as a professional trader.
- Initial deposits. It is impossible to learn everything, trading on a demo account. It is like driving a car in a computer game. To polish your driving skills, you need to go on a real road with its risks and dangers. Thus, in trading, you need a real account in order to learn how to trade profitably. However, investing money, you should understand that you are just at the beginning of your way. Your initial goal is not to earn money, but to gain experience.
Anyone can become a professional trader investing both time and money in education. Let us take a look at the current market situation.
2. Volume analysis of BTC from the Chicago Mercantile Exchange (CME)
Bitcoin is gaining in value (a chart at the beginning of the article). Of course, it is not a confident rise. The price moves up and drops from its highs. However, the asset has all chances to hit a new high and break the level of $62,000 per coin. Traders can join the trend, as bitcoin is highly volatile and may jump in any time. Let us take a look at the levels of the highest traded volume from the Chicago Mercantile Exchange (CME). This volume reflects the activity of big players.
29.03.21 – the level of the highest traded volume (POC– PointOfControl) – 58,655
30.03.21 – the level of the highest traded volume (POC– PointOfControl) – 59,400
During the recent days, the level of the highest traded volume has been moving upwards. This proves the uptrend. At the moment, the price is at yesterday's POC. This reflects the balance between buyers and sellers. Thus, traders are recommended to open buy positions.
3. Trend analysis
Let us continue analyzing the trend. To understand the global market trend, use a daily chart. Open positions only in the direction of the current trend. We use the exponential moving average to analyze the trend.
Long-term trend – a blue EMA (1,152 ) on the H1 chart, which is an alternative to EMA (48) on D1;
Mid-term trend – a red EMA (288) on the H1 chart, which is an alternative to EMA (48) on H4;
Short-term trend – a black EMA (48) on the H1 chart
We can see an upward movement. The price is above EMA 48, whereas EMA 48 is above EMA 288 and EMA 288 is above EMA 1,152. This proves a confident uptrend. In this case, traders are recommended to open buy positions.
4. Japanese candlestick analysis
Market analysis with the use Japanese candlestick analysis is the third step in this trading system. Let us analyze yesterday's daily candlestick:
Candlesticks appeared on Monday and Tuesday are somewhat similar. Both candlesticks are white, the closing price is higher than the opening price. We can see long upper shadows that indicate a struggle at the highs. However, bears do not give up. Today, the maximum of yesterday's candle has already been broken. We are likely to see a continuation of the upward movement. Today, it is better to open buy positions.
5. Conclusion. Statistics
1. Volume analysis – BUY
2. Long-term trend – BUY
3. Medium-term trend - BUY
4. Short-term trend – BUY
5. Japanese candlestick analysis – BUY
Conclusion: On March 31, 2021, it is possible to buy bitcoin as various analysis types provide us with the same forecasts.
Only statistical data can show the effectiveness of any trading approach. Traders use these forecasts to trade on a separate account. Positions could be opened on four instruments: Bitcoin, Ethereum, Litecoin, BTC/USD. Each of them could be analyzed in the same way. Gains for 2 months +10.42%.
Statement:
The following positions are opened at the moment:
25.03.21 Litecoin SELL: 174.44 SL: 201; the risk management is 1% of the deposit of $10,000, the trade volume is 0.04.
31.03.21 Bitecoin BUY: 58773.8 SL: 56700; the risk management is 1% of the deposit of $10,000, the trade volume is 0.05.
31.03.21 Ethereum BUY: 1834.85 SL: 1774; the risk management is 1% of the deposit of $10,000, the trade volume is 1.78.
Today, we can see two positions on bitcoin and ether.
The risk per trade is not more than 1%. This approach is conservative. Stop Loss is set beyond the minimum or maximum of the signal day, depending on the direction of the trade. I do not place Take Profit. Thus, the gain is not limited. I accompany the trade by moving Stop Loss beyond the extremes of the new days.
Since the trade is carried out on the daily charts, the recommendation remains relevant throughout the day.
Follow the trend and you will get profit!
