Cryptocurrency Signals Full Guide
Our Cryptocurrency signals full guide is renowned to be a strategy used by top traders in the ecosystem. We’ve all heard about various cryptocurrency signal groups and how people can make money off of them. In this guide, we’re going to delve a little deeper into what exactly the world of cryptocurrency signals can yield to a novice trader. and at the same time, We want to let you know that if you are not sure about Signals provider – You can visit safe trading Platform. They make sure to review crypto signals providers legitimacy
The need for signals
Signals are not a concept unique to the cryptocurrency world – trading signals have been around long before Bitcoin was invented. Trading signals are imperative to the financial system, since many brokers, traders and retail investors rely on them to make their market moves. There are several reasons why signals themselves are necessary for today’s trading atmosphere – here is a basic outline of some of them.
Not everybody has the means, time or expertise to conduct their own market research/analysis.
There are millions of traders out there and most of them don’t know the first thing about moving averages, RSI or other complex trading indicators. The people who are dedicated to trading actually do the research. In a trading environment without signals, people who simply don’t have the time or fortitude to do their own market research would be left in the dust.
Computer algorithms are taking over financial markets.
Every piece of news that the market reacts to is quickly snapped up by a bot, which uses predetermined logic to relay information to a trading algorithm. Even the smartest human cannot keep up with the speed of information that computers are able to relay. As we know, in the market, if you’re not early, you’re going to lose out: and in today’s era, being early means using computer algorithms and signals.
The problems plaguing the traditional financial world are also evident in the cryptocurrency trading ecosystem – it’s simply the nature of markets. Thus, if we are to truly gain an advantage in the market, our information must be received swiftly, well-researched, and executed without delay. The only way this is possible is if we combined algorithms/research designed by experts and computers/networking. This is what the world of signals has achieved.
Finding the right Cryptocurrency signals
A common issue with the cryptocurrency market is that it is unregulated – this means anyone with internet access can open up cryptocurrency-related services. The barrier to entry for making crypto trading calls is extremely low. Essentially, this means that there are a lot of terrible crypto signal groups out there with a lot of useless information. Calls released by such groups aren’t based on sound research and are usually bits of guesswork posted by a group of novice traders. These traders usually don’t have any form of track record – even if they do periodically get lucky, in the long run, following them is virtually guaranteed to tank your portfolio. Let’s think a little bit about how we can find the right signals.
Look at the signal group’s track record.
According to the law of large numbers, when we look at a single outcome, there can be a lot of variances. This means that a bad trader can often make very good calls, and may even become famous for it. However, this is not a reliable way of predicting success – one must only use track record to predict success if it is long enough. A month’s trading history proves nothing, but three years of proven stellar returns are a different thing entirely. If the group you’re looking at has a lengthy and successful track record, that’s an excellent starting point.
For example, famous cryptocurrency advocate John McAfee was known to make some pretty good altcoin calls on Twitter. This led to him gaining a large fan following of over 800,000 members. However, eventually, his calls began taking a downturn, and some of the coins he recommended even fell by more than 90%. It was later revealed that McAfee had been charging over $100,000 to coin developers in return for shilling the coin on Twitter. He had made some good calls in the past, but now, things are taking a turn for the worse. He even reneged on his “bitcoin to $1M” bet recently (after its price fell by over 40%). This is an interesting look into how we should never judge a trader by a single trade or group of trades – we should judge him by his overall performance over a lengthy period of time. It’s all about a long-term, stable track record (and not a few one-off good calls).
Study the analysis/justifications that the signal providers attach with each call.
This is extremely important since it can differentiate a serious crypto trading call group from a novice one. Calls that are made as a result of guesswork or instinct generally do not have any valid justification attached to them. You’ll notice that in such groups, the calls are merely posted (ie. X coin will go up) but there is a lack of further information. Target buy prices, target sell prices, analysis, indicators or other details are not provided. When you see a group like this, you should stay far away.
On the other hand, if you find a group where each call is accompanied by detailed analysis, then it’s a very good sign. This means that the provider of the signals isn’t merely using guesswork, but is actually performing real market analysis. This is a far better way to trade in the long-term since your moves are based on market economic principles rather than some trader’s gut (which could be wrong when the market turns against him).
How a cryptocurrency signal works
Let’s start with your first cryptocurrency signal. What do you do with it? How do you execute it in order to turn a profit? For beginners, the concept can be a little daunting, but the information that follows shall clear it up for you.
Pair: LRC / BTC
This is an example of what the average altcoin signal looks like. There are a few key components to understand from this call. First is the trading pair – this is the currency that you are buying. The first coin name is the coin you are trading, and the second (after the forward-slash) is the currency you are denominating the coin in. For example, if the trade was for ETH and denominated in USD, you would see the pair “ETH/USD” instead. Leverage is another important concept – this involves borrowing funds from the exchange at a low-interest rate in order to push more capital into your trade. This allows you to make a profit than you could have with just your original capital, however, it is riskier since you may get liquidated sooner.
The three key trading points here are the entry price, the exit price (take-profit point) and the stop-loss. The entry price is self-explanatory: this is where you are to purchase the coin. The exit price is where you are supposed to sell the coin in order to realize a profit (remember, if you don’t sell, you haven’t actually made a profit yet). This is important because if you don’t know where to take profit, you might get greedy and never sell. If you hold the coin for a longer period of time, there is a chance it may eventually crash, and you could end up in a loss even though you were initially making a solid profit. The stop-loss is where you cut your losses if the trade goes against you. This is vital because you don’t want to hold onto a losing trade. That’s how traders lose all of their portfolios: by being too attached to their losers. If a trade moves against you, cut your losses and move on to the next trade in order to recover.
These are merely the key tenets to a cryptocurrency signal. However, many quality Telegram crypto groups and Telegram trading groups will actually include a lot more information (technical analysis, charts, indicators and more) to help you understand why a certain call is being made. This is helpful in teaching new market entrants why the market behaves the way it does.
Important cryptocurrency signaling indicators
If you’re a novice trader, you may not even know where to begin. The best crypto signal groups are run by professional traders who are aware of multiple different types of market indicators. It’s time you learned a little bit about what makes the cryptocurrency market tick, and how you can better understand the information given to you in crypto calls.
RSI (Relative Strength Index).
This is widely regarded to be the “momentum index” of the cryptocurrency market and is a superb indicator for beginners to use and understand. It is formally known as a momentum oscillator that measures the speed and change of price ticks in a given market.
RSI is great when it comes to identifying new trends in a given market. This is because of a phenomenon known as “RSI divergence”. If the RSI peaks and troughs are different from the market chart highs and lows, that is known as divergence and can signal a trend reversal, market top or market bottom. Moreover, you can use RSI to fine-tune your market movements if you scale it down to a shorter time frame – it shows you what direction the market currently wants to take the coin.
Simply put, the volume is how much of a currency is being traded in a particular time frame, and can be very insightful. When a market forms patterns such as a bearish wedge, a head & shoulders pattern, or otherwise, traders need a way to confirm that it’s a genuine market movement happening and not just manipulation. Volume is a great way to figure this out – if the volume is extremely low, the patterns can be attributed to random noise or manipulation. Patterns formed on high volume can be analyzed properly since they can be considered the decision of the market as a whole. Volume spikes are also a great way to see which small-cap cryptocurrencies are in the accumulation phase – this is a large factor in figuring out which coins are about to suddenly pump.
EMAs (Exponential Moving Averages).
A moving average indicates past trading history by creating an “average” index of given price movements. With EMAs such as the 50-day and 200-day EMA, you can figure out the average long-term price movements of a security even if you’re looking at a short-term chart. This is helpful in analyzing trends over time, especially trend reversals. Whenever there’s a big new upward or downward trend, you’ll usually find that the long-term moving average crosses over with the short-term market chart. These events can signal explosive moves in the trading world.
- BitMEX. BitMEX is a well-known and trusted exchange offering bitcoin and altcoin derivative trading with up to 100x leverage. It supports both short and long positions and has top-notch security. It only accepts cryptocurrency deposits and withdrawals and doesn’t require KYC of any kind to begin trading.
- Binance. Binance is a famous exchange that offers a large variety of altcoins to trade on. Most of them are small-cap and are thus popular with pump and dump groups. As a result, there are many Binance trading signals groups out there. Binance offers high leverage and has high daily withdrawal limits even without KYC.
- Poloniex. Poloniex is a legacy exchange with a selection of quality altcoins to trade on. They offer leveraged trading as well as margin lending on their platform. They also accept direct deposits from bank accounts via USDC, allowing you to fund your trading activities seamlessly and without friction.
For detailed information about cryptocurrency signal groups, exchanges, indicators and more, feel free to browse the rest of our website. We feature the best aggregation of Telegram trading groups, altcoin signals, and bitcoin signals. If you’re looking for the best crypto Telegram group to join, look no further – click here to find out more.