What is the best way to profit from trading only one cryptocurrency pair? (2)

[Rruchi man]

For a trader who trades only one cryptocurrency pair, how do you think he/she can profit from trading only that pair?
- opening multiple positions?
- or trading with high leverage?

(I know trading with a low leverage and exercising patience can still be profitable, but that is not an answer I am expecting to see.)

EDITED

[BlackBoss_]

For a trader who trades only one cryptocurrency pair, how do you think he/she can profit from trading only that pair?
- opening multiple positions?

Mulitple positions, you need to be clearer with this idea.

These multiple positions need to be opened with different time frames, like 15 minutes, 30 minutes, 1 hour, 4 hour and 1 day hour charts. With different time frames, you have different charts and different views, technical assessment for potential positions. With different time frames, you will have different periods to let your positions open before you need to close them. Even you don't have profit, you need to close them and wait for other opportunities to enter.

- or trading with a large lot size?

It's risky. Be self limited on your capital puts into trading. Trading capital needs to be very small compares to all capital you have so don't try to trade with large size and use leverages.

[Oshosondy]

For a trader who trades only one cryptocurrency pair, how do you think he/she can profit from trading only that pair?
- opening multiple positions?
- or trading with a large lot size?

Lot size is used in forex, commodity and stock trading, we do not use the term in crypto trading. We use leverage. You are not going to see anything like lot size on crypto exchanges.

It is not good to open multiple positions or you should plan it well before doing it.

- or trading with a large lot size?

It's risky. Be self limited on your capital puts into trading. Trading capital needs to be very small compares to all capital you have so don't try to trade with large size and use leverages.

Lot size means higher leverage. If you increase the lot size, you are increasing the leverage. It is not about trading with high amount of money.

But you are still right. Increasing the leverage is just like a trader that is turning trading into gambling. It makes the trade to be riskier and making liquidation price closer.

[Rruchi man]

~

Lot size is used in forex, commodity and stock trading, we do not use the term in crypto trading. We use leverage. You are not going to see anything like lot size on crypto exchanges.

Thanks for the correction. I have some experience trading forex too, and I often misuse terminologies from both sides.

Leverage, not lot size.

[Dr.Bitcoin_Strange]

For a trader who trades only one cryptocurrency pair, how do you think he/she can profit from trading only that pair?
- opening multiple positions?
- or trading with high leverage?

Personally, I would not advise opening multiple positions on one pair. It's not the best way to profit when you are only constantly trading one pair. One thing I observed after trading just one pair constantly for up to one week was that I was so conversant with the price movement of that asset because my attention was not divided on other pairs; I was just focused on it, and it happened that every prediction I was making then was just super accurate (although the extra advantage I had then was that the market was less volatile). I really cannot tell if other traders have experienced this while trading just one pair for a week or more.

The idea of opening multiple positions means that you will have to invest a certain amount in every position you start. For example, if you have $5000 and you decide to open five positions, investing $1k in each, it's better that you take your time and do an accurate analysis of the market direction, then invest the $5000 in one position, which will still give you a significant profit. 

For me, even if I am trading just one pair, I always apply a low leverage size that I am quite certain that the asset price will never go close or below/above to my liquidation price.

For example, let's say I want to enter a buy position for BTC/USDT and the buy price I set is $57k with a 20x leverage and the liquidation price is $55k. I will only enter the trade if I have carried out my analysis and I feel convinced that the Bitcoin price will not fall to my liquidation price. If I am not so confident, I will rather reduce the leverage size, and I will still get a good profit depending on the size of my invested capital.

All I just say is that, based on my own pattern of trading, if I want to make a huge profit with a low risk (low leverage size like 10x or 20x), I will just have to top up my capital, because if my capital is huge, I will at least get a good profit that I will be comfortable with.

[Wapfika]

Grid trading using bots is the best option for me if I’m certain about the ATR(Average True Range) of a certain pair most notably if you are watching only a single pair. Grid trading using bots is very profitable since you can maximize profit whenever the price of the pair keeps bouncing back and forth on the price range that you set with your bot multiple order.

Low leverage trading is an option but I don’t recommend it considering how volatile the altcoin both ways which means there’s always a risk of being liquidated regardless of the market movement due to this insane random price swing both ways.

[Oshosondy]

Low leverage trading is an option but I don’t recommend it considering how volatile the altcoin both ways which means there’s always a risk of being liquidated regardless of the market movement due to this insane random price swing both ways.

If you do not recommend low leverage, then what leverage trading will you recommend? Before a trader should choose a coin or a token, the trader needs to study the price history of the coin. But if you do not like altcoins because of their more volatile nature, you can go for bitcoin and still use low leverage.

[Zaguru12]

For a trader who trades only one cryptocurrency pair, how do you think he/she can profit from trading only that pair?
- opening multiple positions?
- or trading with high leverage?

(I know trading with a low leverage and exercising patience can still be profitable, but that is not an answer I am expecting to see.)

One thing is cryptocurrency cannot open multiple positions like forex on a particular set up. Some of the exchanges I have used for trading do not allow it. So it is totally out of the question. Except maybe it is a different set up.

Using one particular pair to trade is something that I mostly advise people, if you must increase it then you Should make use of highest three. The advantage it brings is that it gives you the ability to have efficient knowledge about such pair after multiple backtesting it.

The only way to get more profit is to take more risk which most increasing your position size (high leverage and high funds). The more the position size the more the profits no two ways about that

[logfiles]

I have never used multiple positions but using very high leverage is bad news. Yes, once in a while you could get lucky but the chances of getting rekt are very high especially if the market is very volatile.

One can make very good profit in one trade only to lose a huge potion of it or all the entire position in another trade if they don't apply proper risk management strategies. Trading on very high leverage is like trading those Solana meme coins, they look very profitable but anytime you are getting rug pulled 

[SamReomo]

For a trader who trades only one cryptocurrency pair, how do you think he/she can profit from trading only that pair?
- opening multiple positions?
- or trading with high leverage?

I'm strongly against the concept of high leverage but multiple positions can be a good one if that trader knows what he's doing.

Let's say if someone wants to trade only BTC/USDT then that person can place many buy orders of Bitcoin at different value points and that way the average value of profit from those positions can be higher than a single position.

I believe a trader who only trades one crypto pair should always learn the movements of that pair to earn better profits from it. It takes some time to master the movements of a pair but it's very possible to master it.

I personally trade only few pairs and thankfully I have learnt movements of those pairs to some good extent. Most of my trades with those pairs give me some profit.

Those pairs aren't very volatile but actually they're helping me earn some money and that's why I believe every trader should master a pair or a few pairs so he/she can most probably earn some profits.

[BitMaxz]

That's risky if you don't know how to manage the risk I have experience on choosing multiple pairs because I saw pro traders on live trading doing this but I tried it only my self luckily all of my positions got liquidated on isolated I'm glad that I didn't set it to cross because the other coins that I trade on the spot might also be liquidated.

If you have knowledge about risk management knows where to set stop-loss you can play with multiple pairs but if you just think that you can make a good profit by taking multiple position in multiple pairs for me, no unless you follow the rules of losing only 5% capital as your limit and do it again on the next day.

[Freepips]

Trading one crypto pair helps to increase profitability, because it helps you to master and understand the price movement, Psychology and market dynamics of the pair in terms of price point. It help increase the chance of high probability setup and with good risk management strategy you can enter multiple positions and can also use high leverage depends on what you are willing to loss.

[shinratensei_]

leverage but with proper analysis is the way, if you can successfully catch the bottom with leverage trade and the dip is really sharp, you can make 300%-500% profit easily.
with the prerequisites that you are willing to risk much of your money for your trade, but in case of leverage trade, you can always use just small percent of your overall capital and take advantage of the high leverage.



just a short look at this chart of BTC, you can easily make profit by buying the dips when everyone is afraid, but the difficult thing is finding the right time to make the order and won't get liquidated along the way, that's why observing resistance and support is essential so you will know. just a warning that this kind of trade is effective for veteran trader with extensive experience, newbies are likely to lose money.

[Cryptmuster]

Sticking to only one trading pair is a long way, because it means working and monitoring only one pair, most likely you will have less opportunities for a large number of trades if you were to monitor several pairs, and thus distribute the risks. But on the other hand, there are traders who choose only one pair and trade only bitcoin, trying to increase the number of satoshis with their portfolio. I am not a supporter of a large number of trading pairs, I like to focus on a few pairs, because a large number will simply scatter my attention and I can miss something important that can affect the success of the trade. Long-term study will lead to the fact that you will have one trading pair that you will work with the most, because you will understand it better than others.

[SquirrelJulietGarden]

One thing is cryptocurrency cannot open multiple positions like forex on a particular set up. Some of the exchanges I have used for trading do not allow it. So it is totally out of the question. Except maybe it is a different set up.

You can do it with one account if you can assign your trading capital for different trading orders. However it is not good practice because you will be more easily confused with your trading positions and if you want to handle different trading positions better, you need different accounts.

Centralized exchanges allow you to create sub-accounts which can allow you to do multiple trading positions with better control and analysis on your trading ROIs with different accounts, different trading strategies.

Trading too much is not good especially for newbies because their emotion, psychology will be affected more when they are living in the market with more time. It can affect their decision-making ability.

[salad daging]

Opening a lot of positions means you have to have a bigger margin and I'm not brave enough to do that even with low leverage, it's better with a single cryptocurrency pair with high leverage but you have to understand that in the opposite direction, losses will be waiting for you.

Better with one low leverage position, although this is not the answer for you, but I prefer to trade like this I just to minimize the greater risk then low leverage is better even though it has to be a lot of patience to get profits.

[Zaguru12]

You can do it with one account if you can assign your trading capital for different trading orders. However it is not good practice because you will be more easily confused with your trading positions and if you want to handle different trading positions better, you need different accounts.

Centralized exchanges allow you to create sub-accounts which can allow you to do multiple trading positions with better control and analysis on your trading ROIs with different accounts, different trading strategies.

I just test run this now on Bybit, you can’t open new position like the way forex brokers allow you to open them and that’s what OP was on about. I opened a long position on a single pair and wanted to duplicate my position, it actually did but the problem is when you want to close positions the both positions will close and that’s simply not what the multiple positions opening on forex are for. You can close positions without affecting other positions of same pairs on forex but it is not possible on crypto trading at least from the exchange I am using.

Yeah there are sub accounts that you can create on an exchange but that’s like a separate account which doesn’t really work as OP wanted. The only way to get more profit on crypto trading with one pair and one setup at a time as I have said is to simply increase the capital and when in profits take partials this way you can make more profit, buy anyone doing this should forget his risk management. Even the best setups can go wrong so chasing more profits might be a big risk