7/29/2019 How To Easily Build A Small Crypto Account Into 5-Digits

How To Easily Build A Small Crypto

Account Into 5-Digits
Jason Sivich Follow
Apr 10, 2018 · 6 min read

I was fortunate enough to get into the cryptocurrency market when prices were still
cheap. I learned how to trade the market when a 10% loss on a 1 BTC trade was only
$100 — a far cry from the $600+ loss new traders are experiencing today. One of the
biggest reasons traders lose money consistently is that they over trade. Whether it’s due
to boredom or chasing a chart that got away from them, most new traders will watch
their accounts bleed over time by entering trades with overwhelmingly negative odds.

I first started trading these smaller coins to keep myself from FOMOing into poor trades,
until I realized just how powerful they can be.. especially for someone that is just starting
out without a lot of capital. I can consistently make a couple hundred bucks a day doing
just about nothing — call it “fun money”, and for someone who is just opening an
account with, let’s say 1 Ethereum, it is a powerful tool to help you build your account
into a 5 digit account. So here we go: let’s say I just deposited 1 Ethereum into an
account and am starting to trade it.

T he first step is finding the right types of charts. This is where you are going to
spend most of your time, which shouldn’t be a surprise. I use Coinigy to chart my
coins because they have most of the exchanges that I trade all built in, but you can use
any charting software you like (including the built in charts on the exchanges
themselves). I also use the 1hr charts because they tend to be a lot safer for these types of
trades (and most trades in general). My favorite places to find account building charts
are on exchanges like KuCoin, IDEX, Cryptopia, etc. Smaller exchanges with lower
volume which allow charts to “whip” back and forth. What you are looking for is quick,
sustainable and volatile movement within a range. An example would look something
like this.
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BNTY/ETH on KuCoin.

T he second step is figuring out average volume size. Ok, so you’ve found a chart
(or charts) that fit your criteria of lower volume and volatile movement within a
range, but now you have to see how much you will be able to stake on each trade.

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Trade data on BNTY/ETH.

Depending on which charting software you are using, the process could be slightly
different but the outcome is the same. By looking at the total column, we can see how
much Ethereum is being traded on average at each price point. As we can see, anywhere
between .2 and 2 Ethereum seems to be fair game and easily moved. Some charts you
will find will not fulfill this requirement. There is a difference between low volume and
no volume and it’s important not to trade charts with no volume. Don’t waste your time
trying to trade a chart with no volume.

T he third step is to identify your trading range. Most of the time this is the
easiest part of the process (and the entire reason why you chose to even look at
the chart to begin with). The range should be easily identifiable and with some
prolonged trading. Here’s what I would choose as the range on our BNTY/ETH chart.

Trading range for BNTY/ETH.

As you can tell, the coin has been trading within that 10% range for 3 weeks, so I would
qualify that range as high probability and easily tradeable.

T he final step is to set your alerts and trades up. My favorite part about using
Coinigy is the ease and ability to set up alerts directly on the charts. For example,
let’s say we put a limit buy order in at 0.00010016 for 1 Ethereum worth. You can then
place an alert directly onto the same price to inform you in the background that your buy
order was executed (via email, text message, and an audible noise). You can then quickly
switch to the chart and set your sell limit at wherever you previously had decided. In this
example, a 10% move would be somewhere around .00011050. You can then set an alert
right on top of your sell order and be alerted when your sell is executed. The process is
incredibly easy and can be repeated as many times throughout the day as you can find
charts.

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An example of an alert that I would have set over the top of a buy limit.

So let’s say I identified this chart as a worthy candidate of being an account

builder. How could my buys and sells be structured to make the most out of the
sustainable volatility?

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It’s important to remember that chances are you will never catch a bottom or a top, and
that’s fine. That’s not your goal while building an account (or ever, really). You want
to use the range as a safe space and make solid, high probability profit while building
your account so that you can effectively profit off of the smaller swings with higher
volume coins. So just how much Ethereum(money) have you made after swinging 12
trades?

Percentage gained on an account per trade, if Ethereum was pegged at $400.

Your trading zone signifies roughly a 10% difference between the bottom and the top.
Seeing as how we won’t hit the zone exactly every single time, it’s believable to assume
you’re somewhere between 7% and 10% per trade (with some being more than 10%).
Your first 12 trades, if averaging 10% per trade, would have added two additional
Ethereum to your stack in 20 days (or just over $800). Remember, this chart is one of
hundreds that can be traded like this, and many give more than 10% returns. It’s
up to you to find the gems by going through exchanges and identifying low volume
coins which are trading within a range.

How long is this sustainable? I trade the chart until it breaks out of its respected
trading zone. Sometimes the charts will only last a week and other times the charts will
last months. Dig long enough and you will find some amazing charts.. If you find one
that is swinging 50%+, trade it as much as you can. You will eventually find your
account to be too big to be able to trade your entire stack on a single chart so it’s up to
you to find multiple charts to spread out your stack.

This is an amazingly easy and powerful way to stay busy during a trading day while
also making you a couple bucks here and there. If you’re just starting your account, it’s a
very, very powerful tool in building your account to 5-digits. Good luck!

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