It’s important to understand that with cryptocurrency, unlike stocks, you can buy a fraction of a coin if you can’t pay for the full price. So for example, if Bitcoin costs $40,000 US, that doesn’t mean you need at least $40,000 to buy Bitcoin. You can buy $100 worth of Bitcoin. And as the price of Bitcoin goes up or down, your $100 moves up or down proportionally. So for example, if the Bitcoin value doubled to $80,000, then your $100 would turn to $200. At the end of the video, I will go over how to track your profits. I use coinmarketcap.com to check market prices.
There are many exchanges you can use to buy, sell, and trade crypto. You can see a list of safe exchanges in the video description. Binance is one of the most popular exchanges in the world. This video will just cover the basics on how to buy, sell, and trade on Binance. This is all I do to cash out profit. I won’t go over advanced trading techniques and leverage trading which is far more complex and risky.
Binance may look overwhelming at first, but you only really need to know a handful of functions to easily cash out profit in crypto. I’ll go over the key things you need to know to get properly set up on Binance. I’ll go over:
1. How to set up your Binance account and set up multiple layers of security
2. How to buy crypto
3. How to transfer crypto from other sources to your Binance account
4. How to withdraw cryptocurrency to send to other wallets or cash out to fiat currency
5. How to convert, buy, and sell cryptocurrencies
It’s free to set up a Binance account. If you use the link in the description, you will get a discount in trading fees and get some free cryptocurrencies from the portfolio deposited to your Binance account.
1. Setting up your Binance account and adding multiple layers of security (done)
While it doesn’t happen too often with major exchanges, there is always a risk of hackers stealing funds. Once you set up your Binance account, it’s important to set up multiple layers of security. So in order to get to this window, what you need to do is go here, and this is the desktop version, go to security and then you will see all of the different security options. The more that you turn on the better.
At the very least I recommend that you use Google Authenticator to give you a dynamic password on your phone every time you log into Binance. And also the withdrawal whitelist address management. So this allows you to basically have approved addresses either your own wallets or people that you know to be able to send crypto to. So that way if someone gets a hold of your account or a hacker, they won’t be able to withdraw the crypto assets because they’re not on the whitelist. So this is why this is very important.
Now in order to add addresses, you click on address management and you can see this is just a variety of whitelisted addresses that I’ve added. So if you want to add another address, you would put add address, label, so let’s say I put MetaMask that holds Ethereum. Can call it this, let’s say I select . . . oh . . . take a second, what coin is it. Ethereum. Um I’ll put an address, da da da, this won’t show up because it’s not a real address but it will say what network it’s on. The address origin, let’s say the address origin is Binance. Ok and then once you put whitelisted then you would click save and that’s simply how you add a whitelisted address.
So you can go through the security settings to see what else you want to add in order to make your account more secure.
How to buy crypto (done)
There are a few ways to add cryptocurrency to your Binance account. The first way is to buy cryptocurrency with a bank deposit. And this will be cheaper than using a debit or credit card. So in order to do that, this is again on the desktop version, go to Buy Crypto>Bank Deposit> Then you select your currency, so let’s say it’s USD, bank transfer and then you put the amount that you would like to buy and then you fill in your banking details.
So once you buy let’s say $400 worth of cryptocurrency in US dollars you will actually receive BUSD, which is a stablecoin. So the other way is to use a credit or debit card. So again you can just fill in the information. No in order to fund your cryptocurrency, you may also want to transfer from your other wallet addresses or other sources and transfer it to your Binance account. So in order to do this, you will go here, go to wallet, fiat and spot. So fiat and spot, this will actually show all of your assets. Again don’t get overwhelmed with all of these tabs and tools and markets and everything. I literally use a couple key functions and I don’t do anything more complex than that.
So with Fiat and spot, I can see all of my assets so now you can see buy, deposit, withdraw, trade, earn and convert. So if I wanted to deposit, let’s say I had Shiba Inu in another exchange, and I wanted to add it to combine it to my Binance exchange, I would actually put deposit, Shiba Inu, and then let’s say I use Ethereum network to transfer. So let’s say I wanted to add more Shiba Inu, I would copy this address and send it from my other exchange that’s holding my other Shiba Inu so then I would send it here. So again, every single crypto will have a unique address.
So again let’s say I had USDT in another exchange I would click deposit, USDT, let’s say I use Ethereum. So this again generates another address so I would input this address into the other exchange in order to send it to my Binance account and so on. So that is how you add cryptocurrency.
Now, if you want to withdraw funds, so you can withdraw. This means that you want to send it outside to another cryptocurrency exchange or a wallet address, and again remember like we went through before with the security, I can only withdraw and send to whitelisted addresses or approved addresses. And if something is not added, then you can simply click on address management and add other addresses that you would like to send to. So that is how you withdraw your crypto and if you want to send it out to another source.[this video ends at 3:58 because I redid the currency fiat video]
Now if you want to withdraw fiat currency to your bank, you would go here and click on withdraw fiat. And you select the currency you want to withdraw so let’s say it’s Euros and then you would basically follow the steps moving forward and that’s how you withdraw your profits or whatever amount you’d like to to the bank.
Trade easily by converting your cryptocurrency in seconds (done)
The easiest way to trade cryptocurrencies is using the convert tool on Binance. It’s important to know that each cryptocurrency has specific trading pairs. You can’t get every alt coin, which is any other coin than Bitcoin.
Before going into the trading view, I first see if I can easily use the convert tool first to get the coins that I want. So in order to do that I would first go to my wallet, fiat and spot and see what I can convert to first.
So let’s say so with every crypto asset that you have you can click on convert. So let’s say I want to convert my Shiba Inu to BUSD, which I know I will be able to do. But you can see all the different trading pairs. So I’m going to choose Shib and then you can see all of the different trading pairs. So I can convert Shib to BUSD and all of these other options which is quite a few here. So if I want to convert all my Shib and cash out to BUSD, I would preview the conversion but I won’t do it right now because I’m not going to cash it out but then you have a couple seconds to confirm the transaction and then that’s all you have to do.
So, let’s look at what else can be traded with other cryptocurrencies, so if you wanted to see all the different trading pairs for USDT, you can click on convert. And then with USDT, USDT can convert to all of these other cryptocurrencies.
And again one more example. If you want to see if you had some let’s say Binance BNB coin so you can see what you want to convert to. Now this is much faster and easier and does the same function as using the trading view which we’ll go into later. Let’s say you had Bitcoin and you wanted to convert this to another, these are all the different trading pairs, these are all the cryptocurrencies you can convert Bitcoin to. And that’s how you do a conversion.
Market buy and sell
So let’s say there’s a cryptocurrency coin that I want that I can’t get on this pair and then what I would have to do if I can’t use the convert tool, I’ll have to go to trade and classic trading view to find the pair that I want.
Now this might look really complex and there’s all these elements and numbers that look confusing but honestly, ignore most of it. I don’t look at these numbers. Basically, you want to find your pair in order to make the trade that you want, whether you want to buy or sell. So with the trading view, it works in pairs, so you have to make sure you’re on the correct pair in order to buy or sell. And it doesn’t matter what order it is as long as the two coins that you want are there.
So for example let’s say I want to get the coin UAH and convert it with my Shib Inu assets. So for example, so what I have to do is go in the search bar, Shib/UAH. So this is trading pair that I want. So you see all of these trading pairs, Shib Australian dollar Ship Doge, so I can convert Shib to Doge I can convert Shib to USDT I can convert shib to Australian dollar and so on. But I would like to get Shib UAH. So again, ignore all of these confusing numbers blah blah blah, you don’t need it. This is the key area to understand.
Now first, it’s important to understand the difference between limit, market, and stop-limit.
So the easiest thing if I want to buy something instantly, then I would do a market buy. So whenever you want to get any cryptocurrency right now, you do a market order, so you click on market. And whether you want to market buy or sell, it means you’re instantly doing it at this time at the best available price.
So let’s say I want to sell my Shib and convert it to UAH so what I would do is I would use, you can use this so let’s say I wanted to buy 25% of my Shib convert it to UAH, I would do that, 50%, 70, 72 whatever it is 100%. So because it’s market, I would sell Shib and basically the first available buyer is going to do the conversion and usually this happens within a few seconds and it executes the order. So that’s market buy.
So on the flip side, if I wanted to do a market buy for Shib, then you would do the same process. So it depends again if you have UAH coins then you would do the same thing, you would put what percentage you want of your UAH to buy Shib. So that’s a market buy.
Limit buy and sell
So let’s say you want to automatically cash out profit once your coin hits your target price. So in order to do this so that you don’t have to keep monitoring the prices non stop, you can just program Binance to do a limit sell so that when your coin hits your target price whether it’s double, triple, or quadruple the profit, then it will automatically sell for you and then you will just have cash, or the crypto assets into your account.
So for example, let’s say I want to cash out BUSD from my Shib profit, so I’m going to put a limit order on that. So what I’m indicating here today this is the current price of Shib. And it’s at 0.00003399, so what I’m going to indicate, let’s say I want to triple the profit and it goes to 0.000099. But let’s say once Shib hits this price, then what I want to do is actually want to sell only 50% of that. And then I would be receiving this much in BUSD.
Let’s say I change the price and maybe I just want to double my profit and then cash out the profit only then I would get $753 BUSD, if I wanted to cash out all the profit when it doubles, or if I want to cash out everything I can just put 100% and this is how much BUSD I would get. And you sell Shib.
Whatever order you want to put, you’re gonna see open orders here below and you can cancel these at any time if they don’t fulfill. But this will only execute if the price hits its target. So that’s how you do limit sales and this is going to save you a lot of time from monitoring prices non-stop.
So let’s say you wanted to wait for a price drop for a specific cryptocurrency so you can get it at a better price in order to get more profit for later. So what you would do is let’s say I wanted to buy more Cardano at a lower price. So first I would like for the ADA/BUSD pair, because let’s say I got you to know like $500 worth of BUSD hypothetically. I don’t currently but this is just for this example. So I’m going to make sure I’m on the ADA/BUSD pair here. Now, this is the price for Cardano at the current date $1.35 BUSD per Cardano coin. So let’s say I want to buy more Cardano if it hits $1.00 and let’s say I had $500 worth of BUSD and use $250 so I would put 50% of my BUSD to buy only if it hits $1.00 so if I had the $500 or $250, it would show up here. Because once you use the slider to say how much of your BUSD you want to allocate to buy at the $1.00 price then this amount would change accordingly. Then you simply put Buy ADA, and again, your orders are gonna go here. And if you ever change your mind just like a limit sell then you can simply cancel the order. But this is how you accumulate more cryptocurrency if you want it to automatically execute at a lower price so again you don’t have to keep monitoring the prices to see when you should manually buy it at a market price. So this way, the binance program takes care of that for you automatically.
How to calculate profit
I don’t day trade frequently. I buy and hold crypto for the short, medium and long term. For the short term, I may sell a coin within a few days or a few weeks depending on when it hits my target price. Some coins may take a few months to hit my target price before I take profits. For coins that I in long term, I hold it throughout most of the bull market and take some profits on the way up.
So I keep track of my purchases on an excel sheet. People set up their sheets in different ways, but this is just to show you an example of how I track my own profits. You can alter it however you’d like. The link to the sheet template is in the description.
People who day trade or trade much more frequently can use software to track their profit and loss much more efficiently.
Before I get into the Excel sheet, I just want to show you this website. I really like using this coincodex.com site in order to see how much my coins are worth at today’s market prices. So this is live at the moment and every day you can see the live prices.
So let’s say I have 1000 Cardano units, this is how much it is worth in US dollars. If you had 100 units, this is how much it would be worth. If you had 500 units and again. Or I could see in Canadian dollars how much is this worth in Canadian. And you can change the amounts as needed. If you have 10,000 Cardano units, this is how much it would be worth. Now what’s great about this is if you are trading coins, if you have lt’s say 100 Cardano units, you want to say well, actually, how much ETH can I get with this. Or switch it, if you have 5 ETH, how many Cardano units can you get. So this is a very handy website to be able to calculate the current value of your portfolio and I use this to see what my total value is as well.
Profit sheet calculator
So this is an excel sheet that I created to keep track of my crypto investments. So this sheet is to give an overall summary of my total principal because I buy some coins in installments. So it might not be one big lump sum. I might buy something five times, or two times or whatever it might be. So I like to have a summary, so for example if we go column by column.
So the first one is the name of the cryptocurrency, the number of units so here we have 2,000 Cardano units, Vechain is 50, and 10 IoTeX units. I put the average unit price and again I get these from coinmarketcap.com so this would actually be in US dollars, just gonna put that. And I like to always put the total principal I invested and that way I know if the price goes up or down if I’m at profit or not so I like to just see the total amount that I invested cumulatively and what the current value is based on the units. And that’s again, I know that today’s current value by using that coincodex website that we went over earlier.
So let’s just go column by column, so we got the total principal invested for each coin. Today’s price, I don’t update this every day, but any given day I might check this column maybe once every week or two weeks or just whenever I want to see what the current value is. And then based on that, you get the total current value. So for example, if I bought at $1 USD for the Cardano units on average, and then today’s price goes to $3.00, then $3 times 2,000 is $6,000 dollars. So the profit would be $4,000. So again, now if we look at Vechain, I invested, a total of $1,000 and then if today’s value is $1,250 then my profit is $250. Again with IoTeX, if my total principal is $1,600 and then today’s value is $1,800 then the profit value is this. But this again only if you decide to cash out. It could be lower it could be higher the next day. But for myself personally, I like to just see where things are so I can decide do I want to cash out or not.
Now, as for trades, I actually for each coin, I track this whether I trade it for something another coin or buy or sell. So for example, I like to always put my total principal just so I know where I’m at. And so if we go column by column, I got the date of my transaction, number of units, the unit price, you know sometimes this might be $2.00 depends on the day but I’m just keeping numbers simple for this example. Then I put the amount invested, so I put about $1,000 and then the trade is $1000 BUSD for 1000 Cardano units on Binance.
I keep coins in different exchanges so I like to put the exchange so I know where things are. And again, same columns for all of the other coins. Now for trade, sometimes I actually might switch let’s say 25 Vechain units for 100 Kusama units as an example. So sometimes I might be trading coins not just cash for coins. So that’s what I put in trades. But yeah this is very simplistic, but again this might not work for everybody but this is how I basically track whether I’m at profit or not just to get a rough idea. But this is one way. If you have another way, I’d be happy to see those in the comments as well.