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How to make money trading bitcoins: Luno tutorials

How to make money trading bitcoins: Luno tutorials img

In the previous lesson, we mentioned luno as a bitcoin trading platform with a summary. Here, we will go a little dipper into knowing how to take advantage of the spread on the platform to make money. Trading on luno is not rocket science; it is simple ensure you read through.
Making money online requires a lot of patience. You have to first, learn before you gain. There are useful strategies I will share in this post that will not only get you started, but they will help you make money trading bitcoins.
In trading any currency including bitcoins, always know that the market goes up and down continuously and these movements are the opportunities we need to make money. You have to be trained on where and how to enter a trade. We make money on luno by taking advantage of spread: spread is the difference between the highest bid price and the lowest ask price. The more our spread, the more we gain.
From the image below, the arrow painted in orange is the lowest ask price, the one in blue is the highest bid price while the one painted green represent the spread. The section enclosed in the red box is the chart showing the market's behavior. From the chart, you will notice that the market does not move in a straight line but up and down.

How to trade Luno and make money


How to make money trading bitcoins Luno tutorials img


As I said earlier, we make money on luno by taking advantage of spread. Trading on luno is easy; you can either be a long-term investor or short-term investor it, however, depends on your patience level. Before I take a trade I put into consideration the following factors
  • The spread
  • The chart (the color of the last pinbar)
  • The Daily trading range


The Spread

In trading on luno, the spread is one of the significant factors to put in mind. I consider any spread below 3000 too risky most especially for short-term traders because such spread can quickly disappear into thin air. Remember, even with a high spread, your profit per trade depends on the sum of money you risked on that deal.
On luno, there is what we call market execution. It means buying at market price or placing an instant order. In such trade executions, you will be charged a fee. Also, any order you execute with the spread equal to one (1) you will be charged a fee. So, to escape such, you have to enter the market only when the spread is above one (1) however, I will recommend 3000.

The chart (the color of the last pinbar)

Before executing any trade, you have to check the chart so you can understand how the market is fairing. Ensure you put into account the color of the last pinbar. The chart can be set to display data for various time frame such as 1 hour etc. but I prefer using the 1-day chart as it is free of too much market noise.

The daily trading range


The market moves up and down within a range, the upper part of this range is the resistance while the bottom is the support. The knowledge of this is very crucial to your success trading bitcoins. The reason is That you might end up losing money when you execute a buy trade on or near a resistance zone. Always ensure you place your trades within this range. Knowledge of range is particularly important to short-term traders. However, long-term traders should not ignore it.

 Read Also: How to make money trading bitcoins 1

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