Getting to know to read crypto signals is important in trading crypto-short or long-term for success. These crypto signals are given by ”providers” who have mastered the art of buying and selling cryptocurrencies.
Crypto signals are a set of information given by these providers to make a return. Investing in crypto comes with a lot of risks due to its high volatility. Return on investment is not always guaranteed so it is important to make research on how not to lose to the barest minimum.
In this post, we’ll learn how to read crypto signals. Before then, let’s know what is a crypto signal and how it works.
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What are Crypto Signals?
Crypto signals are instructions sent directly to crypto traders/investors on their trading/investment. These instructions are given by veterans known as ”providers”. The set of instructions given includes the cryptocurrency to buy, the price to buy at, the sell-targets, and, what price to set the stop loss at.
Crypto signals are received by traders/investors when they join a crypto community. These crypto signals can be sent to people on telegram or via email. You can join a group and gain access to freemium packages [free] or premium [where you have to pay].
When you decide to put your hard-earned money in crypto, you’ll need experts to guide you on how to trade which includes joining a signal group.
How to Get Crypto Signals
If you want to know the cryptocurrency to buy, the price to buy/sell as well as stop loss, then you need to get crypto signals. As stated earlier, there are two major ways you could get a crypto signal. They are discussed below.
Telegram is a social media app that allows you to send messages instantly and chat with others just like WhatsApp. Telegram is however different in its bot functionality which can be programmed and designed to handle messages automatically.
Users can get a crypto call when it is set up on the telegram’s bot. Users can place trades automatically without logging into their crypto exchange account.
Although this is not as effective as using telegram’s bot, users can get crypto signals in their mailbox. The provider can send a crypto signal to those who don’t use the telegram app.
If you are not the type that checks your mail often, you might miss out on these crypto signals which maybe include the trade that will give you a huge return.
How to Read Crypto Signals
After getting the crypto signals, it is important to know how to read them. The instructions in a particular crypto signal are in two forms. They are discussed below.
This trading signal instructs the cryptocurrency you have chosen to trade e.g. BTC, ETH, BNB, etc. This will be based on either the CMP [current market price] or feature a pending order.
The CMP instruction will give you ideas to buy/sell the chosen crypto assets at the dominating market price. As for the pending order instruction, you will be given ideas to buy/sell crypto at a price that will boom in the future.
2. Stop-Loss/Take-Profit trading signals
These are intended to close trade positions when a specific price is reached automatically. There may be cases when the signals are adjusted to minimize the risk and increase profitability when the trade breaks down.
For example, you may get instructions to shift the Stop-Loss to the breakeven level when the cryptocurrency’s price is to your advantage.
Why Join a Signal Provider Group?
There are several benefits you could derive from joining a signal group whether free or paid. Listed below is what you stand to gain when you join a crypto signal group.
1. Notify Member with Updates
You can get updates on the crypto signals that have been issued by the providers when you join a group. You are sure of getting updates when something important which includes a buy-in price or a profit target has been reached.
2. Get Latest News from the Crypto Industry
A good provider will give you updates about the happenings in the industry and especially new stories that relate to signals. They’ll give you advice on what to do- maybe to hold strong and stay in a position despite the market downturn, or they may encourage them to sell.
3. Providing Technical Analysis
As a beginner, you’ll need to understand technical analysis even when you are issued a crypto call. Technical analysis or TA makes use of historical trends to try and predict future price movements. It is therefore very important to keep up with the providers so as not to miss out.
Advantages of Crypto Signals
Discussed below are the advantages of getting crypto signals.
It is Profitable
This is very important for your trading as you can make a profit on your investment when you are guided by those who know how.
2. Gives you Time
Making research before trading or investing in cryptocurrencies is very important. Joining a group where crypto signals and other updates are given gives you time to do other things while you trade.
3. Allows you to learn
This is very important for your trading going forward. You’ll have the opportunity to learn from professional traders. The technical analysis given by the providers can help you, in the long run, to become better and know the in and out of trading.
Crypto signal is a way to minimize risk in crypto trading. Professional traders always help to guide others by giving out the crypto assets to buy, and sell, and what price to stop loss at.
You can read the crypto signal which may be the buy/sell instruction or stop-loss trading signal which is aimed at you getting a return.