In the following article, you will learn everything you need to know about cryptocurrency trading signals and how they can boost your success. Crypto Signals: How to Make Money with Them?
First things first: What are Crypto Signals?
Those are, basically, a set of trading suggestions sent from a signal provider on how to profit from specific cryptocurrencies at a specific price and time.
A crypto signal is nothing more than instruction, a daily manual, on what cryptocurrency trade position to open in the market. These signals are well-researched information with a high probability of giving you a profitable return.
Why Should You Use a Signals Service?
If it comes from a good platform, the signal will also provide you with all the necessary information for you to trade, such as:
- The specific crypto to trade;
- What time to trade;
- The price for you to buy at;
- The target price for exiting the trade;
- And, what is possibly the most crucial info, the optimal stop loss level to minimize your losses – in case the trade does not go as predicted.
Manual or Mechanical Signals Generation
There are two ways to generate signals: manually or mechanically. If done manually, crypto experts apply their experience and success into carefully analyzing the crypto world. Then, the analysis findings send out the trading signals on the currently biggest cryptocurrencies.
If the crypto signal is generated mechanically, the platform uses computer software to scan, track and analyze the price of crypto coins based on coded algorithms. The results become the signals.
Another point in which those signals are a big help: analysis paralysis. Analysis paralysis is a phase that every trader goes through – it is not being able to focus on your analysis and making intelligent, successful trading decisions.
This patterns allow investors to continue making profits while decluttering their minds.
How to Make Money with Crypto Signals
It is important to emphasize that, in the end, no matter what investors' group you are in, it’s up to you to execute those signals and make money. Again, there are two ways you can execute your signals: manually and automated. If you do it manually, you will follow the trading instructions from your crypto signal provider yourself.
This option offers higher control over the actual trading activity – which more experienced traders prefer since they get the final say on what is done with the assets on their account.
Such traders also tend to believe that their knowledge deserves part of the trading process. That’s why they choose to do it manually. However, manual trading does not allow a trader to take advantage of the efficiency and speed when trading such dynamic assets as cryptocurrencies.
The Automated Execution of Crypto Signals
Now, in automated execution, a crypto signal’s software is directly connected to your trading account platform. This software is responsible for generating signals and will also execute them in the market. One of the benefits of trading this way is the speed of the trade—all of this and eliminating the potential subjective trading.
Automated execution also makes it impossible for you to miss any profitable trading opportunity that surfaces on the market at any moment of the day. However, there is a disadvantage: this way, the trader is completely separated from the decision-making process. Although some automated signals providers say that traders do have the option to travel between manual and automatic trading, you can be the one in total control of your profits – and losses.
That is why it is so important to choose a good signal service to help you reach your investing goals. Unfortunately, not all providers will take you there. Making the wrong choice will lead you to lose valuable time and, more importantly, money.
Crypto indicators are also a great learning opportunity. This, since you have the privilege to trade information with experts that will teach some things only years of experience have taught them.
The Crypto Dynamics
Cryptocurrencies are dynamic assets that can have a weird, sometimes unpredictable, price action. That’s why it’s crucial to analyze the performance of the crypto signal service you choose, both past and present.
The fact is, past performance does not necessarily indicate future success. Even though having a solid track record is an excellent way to start. It is also vital to throw several reviews from other traders of the signals provider. So, you can make sure not to be burned before starting.
Actually, profitable traders can only give profitable signals, so it’s also good to know who is behind the trading scenes; carefully examine the team behind your signal service.
By having a good team on top of the service, their group will undoubtedly attract a good community of traders. It has to be a group of investors and traders who use the service and thrive from it, building a thriving community.
That is your insurance that only good ideas and knowledge are shared among the members, not only numbers. Therefore, signals must offer both the opportunity to earn and learn all together.
Our Tip for the Best group on the Market
Nowadays, some of the best indicators come from the Fat Pig Bitcoin & Altcoin Signals. Through their Telegram group chat, they not only tell you which cryptos have risen or fallen today. But they also provide you with the necessary information on entries, exits, and stop-loss placement devices. In sum, the complete combo for trading needs.
Although nothing substitutes personally well-done research, it is hard to spend all day looking at the charts. That is when Fat Pig comes in. Their professional analysts are online 24 hours a day, watching the market closely; and using a book order analysis, so you do not have to lose time.
Becoming a member of their platform is the first investment you have to make. This is mainly before you start investing in cryptocurrencies and making a profit from them. Any questions about crypto signals? Leave us a comment below.