Trading cryptocurrencies is one of the many ways you can make money trading crypto, but for most people, it is very difficult to understand. In this post, we’ll talk about spot and derivatives trading on Bybit.
It’s going to be a detailed breakdown of how you can fund your trading account, what Bybit calls the "Unified Trading Account," how to buy Bitcoin, how to trade, and how you can possibly make money trading crypto. Let’s dive into the details.
Setting Up Your Bybit Account
The platform we’ll be using for all the transactions today is Bybit. If you don’t have a verified account, you’ll need to download the app, sign up, and open an account. Complete level one verification with a government-issued ID.
Setting up a Bybit account is a straightforward process. If you want a more detailed tutorial, check out my previous video before proceeding with this guide.
Funding Your Unified Trading Account
To perform any form of trading, you’ll first need to fund your Unified Trading Account on Bybit. If you already have cryptocurrency in your account, you’re halfway there. Otherwise, you’ll need to deposit funds. There are several ways to do this:
- P2P Trade: Initiate a trade with other users who sell crypto for local currency (or vice versa).
- Local Currency Deposit: If you’re in Nigeria, for instance, you can deposit NGN directly.
- Crypto Transfer: Deposit cryptocurrencies stored on external wallets or exchanges.
Once the deposit is successful, it will appear in your funding account and on your home screen.
To start trading, click the "Trade" button on the bottom interface. You’ll be taken to a new page, where you can set up your trades. Let’s break this down further.
Spot Trading: An Introduction
Spot trading is the easiest way to make money trading crypto, especially for beginners. In spot trading, whatever you buy or sell is delivered immediately. The trade settles at the current market price, making it straightforward.
To start a spot trade:
- Select a Trading Pair: Choose pairs like BTC/USDT or XRP/USDT.
- Market Order vs. Limit Order: Use a market order to buy/sell instantly or a limit order to buy/sell when the price hits a specific target.
- Set Your Trade Amount: Use the slider to select the percentage of your trading funds or enter the exact amount.
For example, if you deposited $100 into your account, you can use a portion of it to buy Bitcoin when the price is low and sell it when the price increases. That’s one way to make money trading crypto!
After buying, your assets will appear under the "Assets" tab. Similarly, selling cryptocurrency is just as simple—select the "Sell" tab, choose the market price, and confirm your sale.
Exploring Derivatives Trading
If you have a higher risk appetite, derivatives trading offers another way to make money trading crypto. Unlike spot trading, derivatives allow you to speculate on the price of a currency without owning the actual tokens.
Key Features of Derivatives Trading:
- Leverage: Control larger positions with little capital (e.g., $100 can control $10,000 at 100x leverage).
- Positions: Go long (profit from price increases) or short (profit from price decreases).
To trade derivatives:
- Tap the "Futures" tab.
- Choose your trading pair (e.g., ETH/USDT, DOGE/USDT).
- Set leverage and margin type (Cross or Isolated Margin).
- Enter your order value and confirm whether you want to go long or short.
Don’t forget to set your take profit and stop loss levels to manage risks. While derivatives can be profitable, they’re also risky, so never trade with money you can’t afford to lose. Start small, gain experience, and gradually increase your trading funds.
That’s all for this guide on how to make money trading crypto. If you have any questions, feel free to drop a comment below. I’ll be happy to help.
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