Introduction
With rise of crypto currencies, it is great to join the game and make some money too.
I looked critically at trading on exchanges like Binance and i realized that you CAN loose money if the market goes in the opposite direction to your trade.
I started looking for a way to earn and not loose at all. I stumbled on Luno App. It lets you buy a few crypto currencies ( Bitcoin, Bitcoin cash, Ripple, Litecoin, Ethererum and USC).
After playing with it for a while i figure out a way to always gain.
I successfully made N12,000 pure profit after two weeks just from one increase in the price of Ripple.
The concept
These currencies go up and down and some of them can be very erratic in their price movement. The idea is to choose a crypto that is erratic, which means that prices goes up and down sharply within a week or a month. For this, i have chosen Ripple (XRP).
You buy and hold. When the price goes up, you sell and wait again for the price to come down. Ideally, you can do this for any cryptocurrency but this guide is mostly for Ripple mainly because it is the cheapest on Luno so small price changes will make you more money since you will have more ripples.
Here are the steps
Step 1: Install the app and register.
Search for Luno on any of the app stores. Registration is pretty simple.
Step 2: Fund your Luno account.
There two ways of doing that, the 1st one is to buy some cryptocurrency. The process is very simple — you decide how much you want to buy and then you complete the transaction with your debit card. If you are in Nigeria, this is no longer possible. If you can buy, then skip to step 3.
2nd Method is to buy your crypto from other sources and then transfer to your Luno receiving address.
How to Buy Cryptocurrencies if You are in Nigeria
How to Create a receiving Address on Luno
Create a receiving BTC (or any other crypto on Luno) wallet inside Luno and copy code.
To create a Receiving wallet for Ripple(XRP), from the home screen, tap on “wallets”.
Then tap on “Receive”
Then tap “Create a new receiving address”
Then it will ask you to indicate the crypto wallet you want to create the address on. If you don’t have a crypto wallet, read on to see how to create one
For this example, I will choose Bitcoin cash (BCH).
On the next view, you give your new receiving address a name
Click create
Your new receiving address is created. You can then copy the address and share to receive money
How to Create a Wallet
From, home screen of Luno, tap on “wallets”, then tap on “Add a Wallet”. You can only have one wallet for one cryptocurrency.
I chose the 1st one, USDC. I already have wallets for the other currencies. If you look closely, Luno has other wallets where you can save your cryptos and get some interest annually
once you select, Luno will give you a little explanation about that crypto currency and then you continue
Then it will ask for a confirmation, before your wallet is created.
Step 3: Setup Luno
Once you receive your crypto using your Luno receiving address, look for Ripple and look at the chart for the day and the week
How to read the chart
Look for the lowest point for the week and set an alert and wait for the price to get to this lowest point.
From the home screen, look at the picture below
Under the price at the top, tap on the small arrow pointing down and select “week”
Look for low points in the past week from 14th to 20th,
Tap on the low point in the chart to see the price at that point
This
this
and this
You can see that the lowest price was N315. So we will set an alert for luno to tell us when next the price gets there.
How to set the alert
From home screen, tap on “Profile”
Then tap on “Price alerts”
On the next view, you will notice all the crypto currencies on Luno at the top. The 1st one highlighted is the one you can create an alert on. You can see BTC is highlighted
If I want to create for USDC, I will tap on USDC. Then tap the red bell icon below
On the alert setup view, there are 4 settings that you will see
1. Create alert once- this is the one we need to always select.
2. Create alert always
3. price increase — select this if you are waiting for price increase
4. price decrease — select this if you are waiting for price deduction
Next you enter the target price you want Luno to alert you.
Luno charges a 2% percentage for transfer, Calculate when you will make profit and set an alert
Aim for at least 20% profit and set another alert.
Click here to use our free calculator
In this case I want Luno to alert only once, when the price of USDC gets to N750. By the way, you can see the current price below that box.
my alert is created!
Step 4: Take action based on your alerts
Once ripple price comes that low, transfer all your BTC to ripple and wait.
How to move your Money from One Wallet to another
From Luno home screen, tap on wallets
As you can see, all my money is in my Naira wallet.
Tap on “Buy” at top
Choose the crypto currency you want to buy
It will ask you how you want to pay. There are two options, get from any of your wallets or add money with your debit card. The 2nd option is no longer working because of the recent CBN restrictions.
Choose the wallet you want to move money from. In this case, my naira wallet
next, you enter exactly how much you want to move to the new wallet
Pay attention to the red arrows. In the box, you can enter the amount of money you want to move to this wallet. If you want to move all the money, you tap on “max”, and all the money in that wallet will be selected.
If you look below the box, the amount of money available will be displayed.
Next you tap “next”
The next screen will ask you to review and confirm
Pay attention to the numbers
1. This is how much Ripple i will get
2. This is how much commission Luno will charge
3. This is how much you will spend from your naira wallet. If you are fine with it, you can tap on “confirm”
Next you will enter your pin to confirm the transaction
Ripple goes up and down alot during the day and week. Once you get your second alert, move all your ripple to your naira wallet and wait again for the price to go down.
IMPORTANT: Don’t be greedy. Once you get to your profit % or objective, withdraw your coins. Even if the price “looks like” its still going up. This because, when the price starts going down, it may fall even lower than you bought it and you might have to wait for more than 2 weeks for it to go back up.
Look at the chart again and look for the lowest point within the week. If it takes more than 2 weeks for the price to go down, then look at the lowest point in 2 weeks.
You can repeat this process over and over again.
So if you start with 5000, you will make 5400 usual within a few days.
If you do this everyday, you could change your 10k or 100k to 20k or 200k in a week or two. If you get lucky and the market moves up very well, you will smile. (I withdrew my ripple one night at N293 only to wake up and the crazy thing has gone to N 312)
Advantages of this method
You don’t really suffer losses since you are not trading because, ripple will always go up after it goes down.
You loose when you withdraw impatiently
Disadvantage
Sometimes it takes more than a week or two, for the price to go down. That can be frustrating.
Also, there is nothing like a “stop loss” like its done in trading. So when the price starts going down, you can only withdraw on time or just wait.
