According to the Oxford dictionary, trading is defined as the action or activity of buying and selling goods and services. Dictionary.com defines it as the act of buying, selling, or exchanging stocks, bonds, or currency.
How Do You Trade on Binance and Make Money?
If you are reading this piece to learn how to trade on Binance and make money with it. This is the post for you. I’ve highlighted five possible ways to do that below.
There are 5 popular ways to perform trading transactions on Binance and make cool cash from it and here are they below…
Risk warning: Cryptocurrency markets are very volatile and highly susceptible to market manipulation and other misuse for illegal activities. It is advisable to deal or transact with what you can afford to let go.
Investing and Trading (Buy & Hold)
The most popular way on the list here is by investing and trading. Investing is for the long term, whereas trading is for the short term.
It essentially entails a long-term strategy of purchasing and keeping cryptocurrency assets. When you go to Binance’s trade section, you’ll notice a section called “Spot.” Spot trading is the purchase and sale of crypto assets at current or predicted market prices.
Let’s say you want to invest $100 in Bitcoin (BTC) and you already have an equivalent of 100 USDT (a stable coin) in your Binance spot wallet. So you’ll look for the BTC/USDT pair to buy BTC with USDT, then you’d have to leave it for some time period, say 6 months to a year.
All things being equal, if Bitcoin has increased in worth which is absolutely possible, then you must have made a good return on your investment. This is the basic idea behind investing in cryptocurrency.
Trading (or call it day-trading) is when you take advantage of the crypto market’s short-term opportunities. Instead of waiting patiently like Investors would do, you capitalize on the short movement of the market. Trading cryptocurrency for short-term gains carries some risk, but it is a very popular technique for many traders to make money.
If you choose this path, I recommend that you gain some knowledge and skills in order to study charts and comprehend risk in between, as most successful traders do. This is how you can make some good money in the market in a short period of time.
There are other derivative markets such as futures and margins that you can trade using leverage for bigger profit margin, though I wouldn’t recommend doing so as a newbie.
If you would love to know how to take basic spot trades on Binance. I recommend that you read this article – How to Trade On Binance For Beginners [Step by Step]
Staking cryptocurrency is similar to having a bank account with a fixed deposit. Staking your cryptocurrency locks your coins and prevents you from spending them for a set period of time, after which you are paid interest or rewarded. This is done for a cause that is essentially identical to mining. Miners are the individuals who allow bitcoin transactions to take place using the proof of work idea, in which their supercomputers are used to validate and approve transactions in exchange for some computational effort.
Staking is based on the proof of stake principle, in which your coins are used to validate transactions. You can choose to lock your money for 30 days, 60 days, or even longer, and there are even Flexible plans that allow you to lock and withdraw your coins whenever you want. If you’re just getting started.
Your coins are locked away and are utilized to assist with network transactions while you earn money. Everyone benefits. Transactions are approved using your locked stake, you earn interest, and the coin’s value may even rise. However, while you will receive a percentage gain, the value of the coin may decrease. Of course, there are high yield USDT choices as well, but the bigger the payouts, the higher the risks.
Referrals / Social Activities / Rewards
Another way to make money with cryptocurrencies is by performing some activities as required by Binance, like sharing and inviting friends to win a giveaway or even crypto. You may win an iPhone 13, an Airpod Pro, a Samsung device, and some Binance hoodies.
Most of the activities are things you can complete in minutes. For instance, you may have to share your referral link and get 5 of your friends to sign up and create a verified Binance account using your link.
Your friends that you referred should also trade, so you can get the reward. That’s all there is to it. You can earn a few cents by referring others, and you also have a chance to win some fantastic rewards.
Arbitrage is gaining a lot of traction these days than before. Arbitrage is the process of buying and selling the same cryptocurrency asset (coin) for a different price on two different markets. For example, suppose you purchased 1 BNB on Binance for $500 (500 USDT) and you sell it for $525 on another cryptocurrency exchange.
Simply put, crypto arbitrage is about buying crypto on one market at a smaller price and selling it at a higher price on another crypto market place. When arbitrage opportunities arise, it can be a risk-free or low-risk venture for the trader and it is fast. Many folks have made millions, if not billions, of dollars because of the price differences like this.
There are online tools and platforms that help you figure out where such opportunities exist. One popular one is Now 2 Trade Arbitrage.
Airdrops are free tokens released to raise awareness about a project, This is another way many people use to make money with cryptocurrency if they follow the rules. If you participate in an airdrop, you will receive a free coin that you may sell for fiat or cash later.
Offering a service and accepting cryptocurrency as a payment option is a surefire way to make money with cryptocurrency. High fees are frequently one of the issues that freelancers face. Having a payment for a service you’ve provided has recently been reduced by nearly $100 or more in fees. That’s about N55,000 Naira. Receiving money for work through systems like Payoneer comes with increased transaction costs. They demand a significant fee for receiving money, spending it, or transferring it.
So it’s unfortunate, and I can’t say I blame them because that’s how they earn money. You can choose your preferred coin to be paid with on a platform like Binance. Copy your wallet address and get your money in minutes from anywhere in the world.