Signals to Buy Cryptocurrency
Trading in cryptocurrencies and investing in various types of such coins became a real panacea in terms of maintaining material prosperity during the downturn of the world economy. These assets allow you to save and increase your funds in the long term and earn money for everyday needs in the foreseeable future. All this is possible if the following conditions are met: the presence of an initial deposit and the ability to buy cheaper and sell more expensive.
Since not everyone is ready to spend several months mastering all the subtleties of such analytics, services with trading signals for cryptocurrencies have appeared. Their essence, the rules of choice and use will be discussed further.
What are cryptocurrency buy signals?
Signals are advisory notices, notifications, or visual marks on the chart that indicate the prospects for buying or selling a particular cryptocurrency.
They make it clear the main parameters of the upcoming transaction:
- which cryptocurrency is better to open an order for;
- in which direction will the price move-to rise or fall;
- at what price level it is necessary to close the deal and fix the profit.
In addition, the signals may indicate points on the chart where it is desirable to stop trading, if suddenly the calculations turn out to be incorrect (yes, the signals are also not always perfectly accurate).
The signals are intended for traders and investors. In the first case, they are short-term, and are calculated for a period of several minutes to several days. In the second case, the investor plans to make a profit on the growth of quotations in the long term, and signals for the purchase of cryptocurrency are focused on a period of several weeks to several months or even years.
Types of cryptographic signals
Taking into account the time differences between the described situations for traders and investors, we can distinguish such three categories of trading signals designed for operations with cryptocurrency:
But the classification is not limited to this-there are three types of such notifications based on availability:
- free – fully available for all categories of participants in the cryptocurrency market. They are published on open services and platforms, they can easily be found on the Internet and even subscribe to them;
- conditionally free-they are also available without strict conditions except for one-the user must be registered either on the service where the signals are broadcast, or on the website of a specific crypto exchange or with a specific cryptocurrency broker;
- closed-such signals are provided to a narrow circle of investors and traders under certain conditions. These conditions may include adding a specific amount to an account with a partner company, paying for the service or analytics costs, or meeting the conditions for the number of open transactions.
Naturally, taking into account this classification, such notifications about the prospects of buying or selling are paid and free.
In addition, the signals differ in the analysis algorithms. They can be based on the fundamentals of fundamental analysis, the economic calendar, the Martingale principle, Elliott waves, oscillator readings, candlestick or graphical analysis models.
Special attention should be paid to the so-called pump signals. First you need to understand what this term is and what lies behind it. In fact, this is an artificially created hype around a certain coin, usually quite young and cheap. Pump notifications aim to provoke inexperienced investors to invest in such coins the maximum of their capital in the hope of intensive growth of quotations and, accordingly, huge profits.
In fact, the big players are not going to invest in these coins, and are waiting for the peak maximum price to sell the coins bought for almost nothing to novice crypto traders.
However, even beginners can avoid this hook, which is thrown to them along with the bait by experienced participants. And it is enough for them to pay attention to some signs of signals for cryptocurrency pumps:
- a sharp increase of more than 5% from the initial quote;
- no coins in the top, at least - in the first 50 positions;
- little-known coins with extremely low cost are growing;
Suddenly, there is a surge in information about the growth of this cryptocurrency.
If all these signs were noticed late – then all is not lost, since at the peak there will be a period of decline and growth with frequent alternation. And at this point, it is advisable to get rid of the coins purchased earlier, as soon as the price becomes higher than the purchase price.
Where to look for trading signals on cryptocurrencies
Signal compilation is a vast field of activity, where there is a place for both experienced traders, artificial intelligence, and, sad to say, outright scammers. Signals are usually broadcast in group accounts, channels, or on exchange websites. Common signal sources for cryptocurrency trading:
- channels in the Telegram service;
- trader forums;
- social networks – special groups and profile pages;
- mobile apps;
- bots and programs that can collect and analyze information from various sources.
Recently, the most comfortable and fast conditions are represented by telegram channels. In closed channels, signals for different types of cryptocurrencies are published with entry and exit points, desired volumes, and an indication of the timeframes in which the analysis was conducted.
How to choose signals for trading cryptocurrency assets
As you can see, there are many sources and varieties of signals for the purchase of cryptocurrency. This makes it difficult to choose, but you can rely on the basic signs of reliability – this will help you avoid risks and not spend money on false signals from scammers:
- availability of a financial license or certificates from the signal provider;
- availability of reports on the site with signals;
- uninterrupted and competent feedback;
- availability of a legal address;
- duration of the service or channel activity;
- the number of subscribers to signals for cryptocurrency trading;
- reviews of accuracy on independent sites.
It is also advisable to conduct your own audit. Namely, to mark several open signals, record their indications for entering and exiting a trade. Then track whether the signal is triggered in plus or minus. And after a few days, check whether the supplier has changed the characteristics of the signal retroactively.
With this approach, trading cryptocurrency using trading signals will become reliable, fast and profitable.