While the crypto market is volatile, any suggestion or piece of advice that would make traders succeed is valuable. This is exactly where crypto trading signals comes to play. It is a popular tool which crypto traders leverage to make profits.
If you are a newbie or you are just starting out your trading career, you need crypto trading signals every step of the way. However, there are several fake crypto trading signal providers on the internet which you need to be wary of. These platforms vouch what they cannot offer; they even go as far as promising mouthwatering signals to newbies, whereas in the real essence of it, they are not what they claim.
Therefore, it is important to deal with genuine platforms when looking to subscribe for crypto trading signals. In view of this, we have put together 5 elements you need to look out for in a quality crypto trading signals. But before we get started, let's quickly bring you up to speed with the definition of crypto trading signals.
What Is Crypto Trading Signals?
Crypto trading signals are simply trading suggestions or trading ideas to buy or sell a coin at a particular price and time. Crypto trading signals can be manually generated by expert traders for you to copy or you can generate them by setting up trading bots to automatically execute trades on your behalf.
If you trade using trading signals, your back is covered by all sides, as the signals come with a protective stop loss and take profit. Nowadays, so many platforms offers "copy trading" to allow newbie traders to copy the trading strategies of expert traders to make a profit.
Also, there are free trading signals, but you have to be wary of them. Quality trading signals is more reliable and dependable than these free trading signals we have everywhere on the internet. If you are looking to make a profit while trading, ensure you subscribe to a quality crypto trading signals provider. There are weekly, monthly, and yearly subscription plan. Look for the one that suit your budget.
Once you are registered on a platform, they will regularly send you signals to buy or sell your coin of interest via your email, phone or any other communication channels. Once you receive the signals, implement them without wasting time.
The Aim Of Crypto Trading Signals
Nowadays, a lot of young and inexperienced traders make use of trading bots and signal providers to implement their trade. On the other hand, expert traders generate their own signals manually using their hard earned resources.
Whether you trade cryptos using a bot, copy trades or ideas from professional traders or generate ideas yourself, crypto trading signals can help you achieve all of these. Trading signals can advice you to sell or buy digital assets at a particular time and price.
Elements Of A Quality Crypto Signals
Before you subscribe to a signal provider, ensure you look out for the following elements which make up quality crypto signals:
#1. Buy/Sell Crypto
The first and most important element in a quality crypto trading signal is the buy or sell option. If you have a short-term plan of buying and selling cryptos, this element will enable you to make a profit.
#2: What Coin to Buy/Sell
After giving you the signal to buy or sell, the next element is to inform you the particular coin to buy or sell. For example, the trade signal may provide you with the information to buy Bitcoin, Ripple, Litecoin or Ethereum. For the most part, the coins suggestions are usually correct if implemented immediately.
#3: The Price
A quality crypto trading signal will provide you with the price to buy or sell the coins they suggested in the previous element. The price suggested by the provider will either be the market current price or a price that is below/above the market price.
Now, if the cryptocurrency signal provider sends you a coin that needs to be bought or sold at the moment of signal’s issuing, then you need to act fast if you want to get the same price. In most instances, when you’re given a crypto signal with a current market price value you’ll get a slightly different price.
You might be using a different cryptocurrency exchange that has slightly different prices, or due to the short-term high volatility, the market might be moving too fast to catch the same price. An automated solution like the arbitraging trading software would resolve this issue.
You can still take advantage of this type of crypto signal if the market didn’t move that much, so a good portion of your potential profit to vanish away.
#4: Take Profit and Stop Loss Orders
Seeking to smile to the bank trading cryptos? Then lookout for take profit and stop loss orders in the trading signals you'd subscribe to. This element offers you what is known as a risk to reward ratio, which we believe is decent enough.
This element will also help you to focus your energy on other meaningful things rather than having to monitor your portfolios 24/7. Plus, it will give you an insight on when to stop trade, a solution that may not be easy to decide on your own.
#5: Additional Information
Additional information that would make you perfect your trade like crypto trading charts and graphs are included in a quality crypto trading signal.
The information can come in different forms - for instance, your provider should tell you different ways to trail your SL or inform you an exact time to close a trade. Also, though not mandatory, crypto trading signals may contain risk management approach.
There you have it! If you want to find real success trading cryptocurrencies, it makes sense to learn the art of crypto trading. But, if learning the nitty-gritty of the market is not your thing, then crypto trading signals can be of help. You can subscribe to any of the reliable service providers.