This is a simple guide on how to start earning passive income with a cryptocurrency trading bot.
Step 1. Understand the basics of Cryptocurrency:
Cryptocurrency is like “open source” digital money. There is a open ledger that everyone can read. In it all transactions are logged. Like the banks do, but open, so everyone can see how much money is in which wallet. To prevent fraud there has to be a fol-prof system on how the ledger is updated. The current dominant system for that is called “Prof of Work” aka “mining”. Everyone is invited to join, and let their computer work on encrypting the ledger, in exchange you get a small reward of money.
Because “mining” utilizes computers, it costs lots of electricity world wide. Even tho that electricity mostly comes from green sources, it is not a efficient system. There will likely be a shift to a better system coming soon. One is called “Prof of Stake” were everyone is invited to stake some crypto to help safely update the ledger and in return get a small reward.Read more about how crypto transactions are secured here.
So, that is basically what is going on behind the scenes. Now let’s dig into to the practical stuff.
Step 2. Open a cryptocurrency exchange account:
This is like choosing a bank. But it’s also like choosing a payment method. You want to be able to use your money everywhere. We suggest you start with an account at Binance, they are the number one exchange right now, and they offer a Visa card for no charge you can use world wide. The rest of our guide to a passive income is kind of based on a Binance account.
Please use our referral link if you like this guide, YOU will also receive a 5% discount on trading fees: Binance.com
Now that you ave a cryptocurrency account at Binance you need to transfer some funds from your bank account to your Binance account.
Step 3. Transfer funds to your cryptocurrency account:
We wont give you a screenshot guide, we prefer to think that you are capable of using apps yourself. Log into your Binance account and find the “deposit” button in your wallet (it´s on the “Fiat & Spot” page).
We suggest that you start with a small sum like $500. This way you can relatively safely get a chance to learn how to use the automated trading that you will set up in the next step.Remember to NEVER use money that you can´t afford to lose, it is very very unlikely, but if the whole crypto market totally crashes , you don´t want to be screwed.
OK, so now that you have some crypto you need to start thinking of keeping it secure. In this case it´s Binance that’s “holding” your money, so you need to keep your login information secure. Never give anyone your login info, and do not use it on public computers. If you start accumulating large sums of money on Binance, then consider putting away some to a “hardware wallet”, a device you can store physically in your home, or a safe. Read more about hardware wallets here.
There are a number of cryptocurrency trading bots out there. After testing, we found the one we like the most is 3commas. Therefor it is the one we use in this guide. This bot has proven to be capable of earning you approximately 0.4 % per day, that accumulates a lot of money if you have funds to spare. Over 100 % yearly. We do not promise you have the same experience, there is to many factors in motion.
Step 4. Get a account for the automated trading bot:
Open a free account at 3commas, please use our referral link if you like this guide: 3commas.io
Step 5. Connecting your 3commas account with your Binance account
– Go to Binance and find the page “API Management”, it’s in your user menu. There you can “label” a new key and create it. This key is like a relay long random password.If you need a more detailed guide, 3commas has a excellent guide with screenshots on how to connect your accounts. Connect 3commas to Binance
– Copy that key-string and go to 3commas and find the page “My Exchanges”. There you click on “connect a new exchange” and past the key.
The next part gets a bit technical, so we need a separate guide for setting up the automated trading. Don’t worry it’s simple enough. Keep following the guide, click the button below and don’t panic 🙂