The Comprehensive Guide For Cryptocurrency Trading and Binance Futures Signals
With technological advancements, we have seen the invention of cryptocurrencies, which have evolved within the last few years. Digital currencies were primarily limited for demonstrable transactions in social and gaming economies. Nevertheless, cryptocurrencies were designed to eliminate financial mediators through direct peer-to-peer transactions. Today, developed countries such as the United Kingdom, China, Germany, and the United States have started embracing cryptocurrencies as a means of exchange. Furthermore, today we will learn about Trading Binance Futures Signals.
While there are different terms used to represent it, each country has its term. For instance, electronic currency (Lebanon and Colombia), virtual asset (Mexico and Honduras), Cyber currency (Lebanon and Italy), virtual commodity (Canada, China, and Taiwan), crypto token (Germany), digital currency (Argentina, Australia, and Thailand), and payment token (Switzerland).
The widespread popularity of digital coins such as Bitcoin, Binance coin, Ripple, Ethereum, and Litecoin has driven the market to new heights. Moreover, cryptocurrency is utilized with the integration of Blockchain technology to achieve decentralization and organized transactions.
The Rapid Growth of the Cryptocurrency Market
If you thought 2017 was a massive year for the cryptocurrency industry, 2020 should be a record-breaking year. For 2021, there isn’t anything to describe it yet, as we’ve seen several coins reaching an all-time high. Ethereum rose from a low of $90 in December 2018 and exceeded the $500 price market. On January 5, 2021, the price of Bitcoin surged to $34499.20 after a statement from JPMorgan that the currency has the potential to reach $145,000. However, it got to an all-time high of $61732 on March 13, 2021.
The recent global pandemic left countries and their economies battered and dealt a blow to traditional assets. Additionally, the market sentiment of fear that we’ve seen in mainstream assets provided a conducive atmosphere for the cryptocurrency market to thrive. Besides just individual traders, institutional traders and companies have turned their investment portfolios into digital assets. Furthermore, this has contributed to the widespread popularity of cryptocurrency is becoming part of the mainstream currency.
Adoption of Cryptocurrencies
From JPMorgan to PayPal to Visa, some of the big shots in the financial sector have announced the adoption of cryptocurrencies as part of payment methods on their platforms. These have become a morale booster for investors in the market.
Nevertheless, in the African continent, the adoption of cryptocurrency has been pronounced. The continent has experienced increasing trade volumes, crypto ownership, and regulation. A recent report indicates that African ranks second in peer-to-peer cryptocurrency trading. According to the report, Nigeria is foremost in terms of growing peer-to-peer volumes, with a recorded weekly volume of $6 million to $10 million. Africa is gearing up to becoming a promising region for cryptocurrency adoption.
With the increasing interest in cryptocurrency among traders, Contract for Difference (CFDs) have emerged as a practical way to trade cryptocurrency. With CFDs, traders don’t have to own the asset to speculate its price. Alternatively, you can trade cryptocurrency with a little capital compared to trading cryptocurrency directly on exchanges. Fortunately, it is one of the primary reasons for the growing popularity of cryptocurrency CFDs.
What is Cryptocurrency Trading?
Cryptocurrency trading deals with speculating on price movement using CFD trading. Alternatively, it involves buying and selling digital coins using a cryptocurrency exchange. Today, there are many ways that traders can trade the cryptocurrency market. In the later part of this article, we will explore important ways to take advantage of the market.
5 Top Cryptocurrency Exchanges
Cryptocurrency exchanges are platforms that allow investors and traders to trade cryptocurrencies and other financial instruments. They act as an intermediary between a seller and a buyer while making money through transactions and commissions. Typically, you can exchange $200 worth of Bitcoin to its equivalent in another coin. For instance, $200 Bitcoin of Bitcoin is equivalent to $4017 Ethereum.
Cryptocurrency exchanges include decentralized and centralized exchanges. Decentralized exchanges allow traders to perform peer-to-peer transactions without using a third party. Because of the issues that most centralized exchanges face, most people prefer to use decentralized exchanges.
On the other hand, centralized exchanges are the most common since they act as middlemen between buyers and sellers. Examples of centralized exchanges include Kraken, Binance, GDAX, and Gemini. Let’s look at the 5 top cryptocurrency exchanges we deem good to begin your cryptocurrency journey.
Binance has become the go-to cryptocurrency exchange for most traders. It is the largest cryptocurrency exchange and the best option if you want to buy and sell cryptocurrencies. The platform performs over 1.5 million transactions per second with an average trading volume of 2 billion per day. Yi He and Changpeng Zhao launched the Binance exchange in 2017. However, due to strict laws in China, the cryptocurrency exchange relocated to Japan and has its headquarters in Malta.
What has contributed to its widespread popularity is its low transaction fee and lowest prices in the industry. The exchange charges 0.1% on each trade, a free deposit, and a low withdrawal fee for customers. Furthermore, Binance has its unique Binance coin and comes with a 50% when you purchase it.
The platform has over a hundred coins with notable coins such as Litecoin, Bitcoin, Ethereum, and Dogecoin. The Binance cryptocurrency exchange is suitable for new traders who want to invest or trade the best cryptocurrency coin without risking much. Currently, the exchange has a considerate amount of volume with over one hundred distinctive pairs to trade
Furthermore, you can’t go wrong starting your trading career with Binance since it allows crypto transfer, credit card, and access to buy crypto using a bank account. Additionally, you have a variety of crypto assets to trade with high liquidity.
Coinbase is one of the best cryptocurrency exchange platforms for residents in the United States to trade cryptocurrency. It is a well-known and well-utilized digital platform that is easy to use for new traders. Fred Ehrsam and Brian Armstrong founded the platform in San Francisco in 2012 after the coding of Bitcoin.
Unlike Binance, it charges 4% for all transactions with a 0.5% taker fee depending on its trading volume within 30 days. Currently operational in over 40 states in the United States, it offers a simple, user-friendly interface and allows investors to buy cryptocurrency using traditional currency. To ensure the security of your wallet, Coinbase offers insured custodial wallets for traders.
The Coinbase Pro is suitable for professional traders who wants to leverage the advanced feature of the Coinbase platform. It has essential trading tools and charts to help build your trading portfolio. Overall, Coinbase is a top-notch exchange platform with over 100 countries supported to use the platform. Furthermore, you receive free $5 in Bitcoin when you sign up to the platform.
Every cryptocurrency exchange platform is unique in its way. KuCoin is a third-party exchange platform that provides access to traders to buy and sell crypto coins. Founded by a group of professionals in May 2017, KuCoin is a new platform that is making waves in history. The platform’s purpose was to give investors a simple and secured platform for everyone throughout the world to trade different digital coins of their coin.
The crypto exchange offers a slick interface, bank-level security, beginner user-friendly interface, and a comprehensive collection of crypto services. These services include an inbuilt peer-to-peer exchange, margin and futures trading, and instant-exchange services. KuCoin allows investors to earn crypto by staking or lending through its Pool-X. Most traders prefer KuCoin because it lists small market cap cryptocurrencies with high upside potentials and growing coins.
Evidently, KuCoin is a reputable exchange platform due to its low trading and withdrawal fees with a vast selection of altcoins. It is a user-friendly platform that offers traders the ability to stake and earn crypto yields. Furthermore, the team provides 24/7 customer support to handle every challenge customers face while trading.
eToro gives you access to trade cryptocurrencies, gold, stock, and oil. Unlike other cryptocurrency exchanges, eToro seems a better option if you want a platform that offers different financial instruments. It is a global platform that allows everyone to trade over 15 major cryptocurrencies, commodities such as indices, oil, shares, and popular stocks.
With regulation a major issue, eToro is a highly regulated platform with over 10 million registered traders. eToro is one of the foremost advocators for Bitcoin after launching its platform in 2007. Today, it offers traders social trading services for everyone who wants to start trading or invest in cryptocurrency.
While it tries to challenge other exchanges, there have been a few drawbacks, including not allowing cryptocurrency trading for U.S citizens and doesn’t allow withdrawals for all cryptocurrencies. Notwithstanding, if you want an exchange that allows you to follow and copy other traders, eToro is your best bet. Furthermore, it is a highly regulated platform with top-notch security to protect your investment.
Although one of the newest cryptocurrency exchanges in the crypto industry, it remains the largest exchange in terms of trading Bitcoin and altcoins in euros. It is quite an impressive feature that has attracted many; it is a highly secured exchange with comprehensive security measures and security audits integrated into its system.
Another reason for its popularity is due to its lowest fee in the industry. As if that is not enough, it offers free deposits with very competitive withdrawals for traders. Additionally, trading is on the go as you can use mobile apps or web platforms anywhere and anytime.
Generally, Kraken has a vast selection of altcoins to trade with a simple user-friendly interface and a low fee. Nevertheless, we consider it not the best place to buy crypto because it doesn’t accept bank card deposits. Besides this, Kraken is a top-tier cryptocurrency exchange that offers the best security you desire in any exchange.
Furthermore, you have access to unlimited educational materials and trading tools in your trading adventure.
Ways to Trade Cryptocurrency
Within the last few years, trading some of the major cryptocurrencies has evolved. In December, we experienced various highs through several assets. Today, there are different ways to trade the cryptocurrency market. If you like buying and holding coins, then the best option is to use exchanges. You have exchanges such as Coinbase, Binance, KuCoin, etc., to choose from as they allow traders to buy coins.
Crypto exchanges allow investors to easily buy and sell popular coins, including Ripple, Ethereum, Bitcoin, and altcoins. Nevertheless, the process is quite complicated, insecure, and hard for traders. Therefore, to make it easier, CFDs brokers allow traders to buy and sell crypto coins instantly. These brokers allow investors to benefit from markets’ volatility and leverage positions. Other ways of trading cryptocurrencies focus more on people who want to buy Bitcoin instead of altcoins.
In this section, we will explore trading cryptocurrency CFDs, cryptocurrency exchanges, and buying Bitcoins.
Trading Cryptocurrencies with CFDs
If you want to trade cryptocurrencies intraday or weekly, the number of CFDs brokers’ offers surpasses what cryptocurrency exchanges provide. Crypto trading through CFD allows traders to capitalize on price differences in the market. You can access various tools that enable you to limit losses once the price doesn’t go in your direction.
To trade cryptocurrency with CFDs, you need a reliable platform that provides a marketplace with access to the platform through phone apps, desktop, and browser. The benefit of trading cryptocurrency with CFDs over cryptocurrencies includes the following:
- You can take a short or long position
- Compatible digital wallets aren’t compulsory
- You can buy CFDs with fiat currencies
- Order execution is instant
Trading Cryptocurrencies through Crypto Exchanges
In trading cryptocurrency through an exchange, there are several regulatory requirements an exchange must meet. To do that, they have to meet every rule and regulation within their jurisdictions, including KYC and anti-money laundering regulations.
Cryptocurrency exchanges have made it possible for individuals to trade the cryptocurrency market. These platforms offer trades diverse collection of coins and assets to trade. For a new trader, the choice of picking a cryptocurrency exchanging can be a daunting task. Here are a few features to consider before selecting a cryptocurrency exchange for your trading to ensure you don’t fall victim to fraudulent exchanges.
1. Transaction Fees:
For most people, transaction fees are not quite important since they want to buy and hold these coins. However, if you want to buy and sell without holding the coin, you might want to consider transaction fees because they can be high for some platforms.
Before you opt to trade with a cryptocurrency exchange, ensure it has a top-notch security system to protect your funds. You need a platform that will safeguard your funds and protect its system against any hacking activities. Furthermore, in protecting your account, it should offer a two-factor authentication system and other security features.
With many countries having strict laws on cryptocurrency, you might want to consider laws across your jurisdictions and local exchange. You need a cryptocurrency exchange that has jurisdiction within your location to offer cryptocurrency services to customers.
4. Liquidity and Trading volumes:
Everything about trading hinges on liquidity and volume. The more the trading volume and liquidity, the higher opportunities. So you should look for cryptocurrency exchange with a high trading volume and liquidity daily.
5. Payment methods:
If you want to identify a reliable and serious trading platform, you should check for its payment methods. What kind of withdrawal and deposit options do they offer to customers? Nowadays, crypto exchanges provide various payment options, including credit cards, crypto, fiat currency, wire transfer, etc.
Buying Bitcoin in Local Stores
The last option available if you want to trade cryptocurrency is to buy Bitcoin from a local store. If you decide to buy from a local store, you need to provide basic information such as name, country of residence, and Bitcoin wallet.
The benefit of buying from a local store is the anonymity and simplicity of each transaction. Today, several companies process in-store cash purchases of Bitcoin. Although anonymity is of great benefit, buyers must ensure they have a compatible digital wallet when buying. Generally, there are several options available for anyone seeking exposure to the cryptocurrency market.
However, before you venture into any financial investment, it is vital to understand the market. The cryptocurrency market is a highly risky market and difficult to predict. The price of assets can fluctuate anytime and affect your investment. CFD trading is the best option if you want to start trading cryptocurrency.
Trading Binance Futures Signals
Cryptocurrency trading signals aren’t a new thing in the cryptocurrency market. The crypto market is expanding and giving rise to different services. One such service is cryptocurrency signals. While it might not be a new concept, it offers traders a shortcut to the cryptocurrency even without understanding the market.
For a newbie, the complexities of the cryptocurrency market are difficult to understand. It is hard to understand without having expert assistance. Furthermore, at times, some traders don’t have the time to analyze the market.
Whatever the situation can be, these shouldn’t deter you from making a return from the market. Here is where Binance Future signals or crypto signals come to play. Trading signals allow you to protect yourself from any future loss. Investors and traders can leverage trading signals to make profitable decisions.
What are cryptocurrency Trading signals?
A trading signal is a trading idea or suggestion about a particular digital coin. These signals are meant to be used at a specific time and price. Nowadays, there are different types of crypto signals based on the financial instrument you want to trade.
Depending on the level of the trader – new or experienced, cryptocurrency trading signals are beneficial. For newbies, trading signals provide information to make wise trading choices. A trading signal is another way to earn money while learning the art of trading. For experienced traders, Binance Futures signals provide relevant data to increase profitability.
Features of Cryptocurrency Trading Signal
Whether it is a cryptocurrency, forex, or Binance Futures Signals, they all have essential features or elements. Understanding the fundamental element of these signals is essential to your success in trading. Every trading signal should comprise the following parameters:
- Cryptocurrency pair
- Entry price
- Profit price
- Stop-loss price
- Technical support (optional)
An example of a Binance Futures signal is as follows:
WIN/USDT (Binance Futures Signal)
Entry Price – 0.05069
Profit Price – 0.0800
Stop Loss – 0.04300
Technical Support: WIN has strong support at 0.05050 and has bounced up whenever the price touch that level.
You can receive these signals on different platforms such as Telegram, SMS, email, and social networks. The particular platform will depend on the Binance Futures signal provider you subscribe with.
Qualities of Binance Futures Signals Providers
With the widespread popularity of the cryptocurrency market and trading signals, it is unavoidable to see the number of signal providers surging. While it might be something good for the industry, it poses a considerable problem because of the rise of fraudulent signal providers.
Given this, choosing the best Binance Futures Signals provider can be a daunting task. Additionally, you need to pay a substantial amount to subscribe to their packages. It means any wrong decision is a financial loss. To help you avoid such mishaps, we have gathered important parameters you can use to choose reputable signal providers.
There are two approaches to cryptocurrency trading signals that these service providers offer. A reputable crypto provider should offer both free and paid services. The free service should serve as an appetizer to their premium or paid service. In other words, the accuracy and performance of their free signals are an indication of their services.
When receiving these free signals, they should include technical analysis or graphs to back their reason for taking such entry points.
Another critical thing to consider is the time frame for these signals. Significantly, the trading signals are divided into different categories of traders. Your provider should specify if the signals are for day traders, swing traders, or positional traders. With this, you can ascertain when to take out your profit.
Every trader has their trading plan. Even trading signal providers should have a trading strategy or edge to trade the market. You need to ascertain that the strategy is compatible with your trading goal. You should look for a trading signal provider that provides both technical and fundamental analysis for a newbie. Furthermore, also look at their risk-to-reward ratio before subscribing.
No trader wants to lose money to invest money in a platform that would use their investment as a learning curve. Therefore, you need to judge their win or success rate in the market. With signal providers hiring reviewers to provide a good review for their business, it can be hard to ascertain if they have what it takes to deliver. You shouldn’t subscribe to any Binance Futures signal provider if they offer a 100% winning rate because no trading outcome can be 100% accurate. Nevertheless, look for a signal provider that has a reasonable win rate.
The reputation of a crypto signal provider is essential to your success in trading. To check their reputation, you can check reviews from reviews websites or use social media platforms to hear what others say about them. Furthermore, you can look at their history and other metrics to verify their reputation in the industry to be able to reach at Trading Binance Futures Signals that are worthy.
Lastly, you want to judge their performance of their trading signals. Instead of depending on their win rate, you can compare their average profits and average loss in pips. Additionally, you can look at their signal issuance ratio and actual trade that got triggered. If you have an idea of this figure, you can gauge the overall performance of their signal services.
Several cryptocurrency signal providers offer unique services. One of such is Altcenter Signals. The platform meets every parameter we have mentioned in the previous sections for Trading Binance Futures Signals. Importantly, to fully interpret trading signals, you need to have a fundamental knowledge of cryptocurrency trading. Furthermore, to understand the market, you need to know about economic indicators and other things that influence cryptocurrencies’ price.
Understanding Telegram Cryptocurrency Signals
Having understood how the cryptocurrency signal works, it is essential to look at how to take advantage of Telegram for your crypto signals. You should know that there are over a hundred cryptocurrency signal Telegram groups that offer different signal services. The process of setting a Telegram group is straightforward, which is why many providers prefer its usage.
Finding a reputable Telegram crypto group will depend on your preference and the specific goals you want to achieve. Considering everything we’ve talked about on cryptocurrency signals, you can understand why you need a reliable signal provider. Telegram groups give traders access to receive real-time messages like instant SMS.
Many signal providers prefer using Telegram because of the large number of cryptocurrency traders and its capacity to accommodate many people. It serves as the best tool to broadcast instant messages to a wide audience.
Furthermore, Telegram provides a better privacy option compared to other apps. Unlike WhatsApp, you can use messaging bots, access RSS, and create broadcast messages through automated bots.
Pros of Trading Binance Futures Signals
1. Easy tracking
Keeping track of the cryptocurrency industry can be a hectic task for anyone. Imagine staying up day and night watching your screen as the prices of assets move in different directions. Most traders don’t have such a routine to keep awake, and trading signals serve as an easy way to keep a tab on the latest developments in the market.
If you are conversant with trading signals, you would agree that it makes trading easy. Furthermore, it serves as guidance for you when trading the market.
2. Risk reduction
Using crypto trading signals allows both new and experienced traders to minimize the risk in the cryptocurrency market. With the latest information on different aspects of trading, you can reduce your risk to the barest minimum.
When you use trading signals, you can quickly identify risk early and change your position. Looking at the trading signal for experienced traders, you can determine if it will be successful or not.
3. Deeper Understanding of the market
Besides the benefits mentioned above, another benefit traders can derive from using Binance futures signals is the deeper understanding it brings. It provides a better opportunity for traders and investors to learn, study, and have a deeper understanding of the different aspects of trading. When you study charts and price action, you can easily identify market trends.
Cons of Trading Binance Futures Signals
Notwithstanding the benefits of using trading signals, there are also disadvantages that most traders tend to overlook. Let’s look at a few of these disadvantages of using cryptocurrency signals and Trading Binance Futures Signals.
1. Increased Fraudulent activities
The increasing popularity of cryptocurrency trading has given rise to more cryptocurrency trading signal providers. However, with this increase comes a lot of fraudulent signal providers. These providers generate fake signals to unaware traders in a quest to rip them of their hard-earned money.
Although everyone expects professional traders and expert analysts to handle and distribute these trading signals that is not the case since most of them are unmonitored. The industry is filled with many criminally-minded people who posed as professionals.
2. High Cost
In the case where the signal looks genuine, there is also the issue of it being expensive. The high cost of getting a quality signal is relatively high that most people would naturally prefer cheap or free signals in most situations. Nevertheless, not every expensive signal is genuine.
Inexperienced traders are usually people that generate free crypto signals. This is true because most experienced traders have invested money and time. Furthermore, they don’t easily provide free signals for a penny. Therefore, the cost of getting access to these signals becomes expensive because they invest their time to analyze the market.
3. Reliability issues Of Trading Binance Futures Signals
Nowadays, with the advancement in technology, we have seen the rise of robots generating crypto signals. These robots are automated such that they analyze the market without any human intervention to generate these signals. However, the issue with using robots to generate signals is their reliability or performance over time.
Most software used in generating these signals cannot adequately transform raw data into any meaningful information for traders. Additionally, the issue of unreliability becomes a significant issue because these robots cannot provide a 100% result.
Undeniably, we cannot say that crypto trading signals are terrible even though they have many disadvantages. Whether you think they are good or bad, it is more critical for you to perform due diligence before deciding to subscribe or use any trading signal.
Conclusion Of Trading Binance Futures Signals
Cryptocurrency has become one of the driving forces of any economy. It is a massive industry with everyone lurking for opportunities to trade or invest. The growth has gotten the attention of speculators and standby lookers who didn’t believe in digital coins. While this is something promising, there is a high risk of losing your investment if you don’t understand the market. Therefore, this content of Trading Binance Futures Signals is created to help.
The recent pandemic only made the cryptocurrency market boom, giving it an edge over fiat currencies. Nevertheless, cryptocurrency exchanges have also contributed to providing access to traders and investors to trade the market. This article explored the top 5 cryptocurrency exchanges that you can use for your cryptocurrency trading and the benefits of using cryptocurrency signals.
Furthermore, we expounded on the different ways you can easily trade the market, providing an option to using Binance Futures signals in your trading. While the use of crypto signals is something encouraging for beginners, it comes with a few drawbacks that have made many traders reconsider using them.
The cryptocurrency is only at its infant stage, with a lot of potentials for traders. With different coins reaching an all-time high, the market looks promising for anyone thinking of taking advantage of the price movement of different crypto coins.