Predicting behavior too much - too many factors affecting its course. However, one can learn to recognize trading signals and determine the most optimal moments for entering the cryptnok.
One of the main reasons for the fluctuation of the price of any asset is a change in the balance of supply and demand, which can be affected by anything. Among the main factors: the behavior of large players in the digital industry, jumps in other cryptocurrency rates, legislative changes in different countries, news background, bans of regulators, the emergence of new projects ... And a thousand other factors that cannot be foreseen by an ordinary trader alone. Therefore, trading signals are used to form an investment strategy.
What it is and how it works
Trading signals are recommendations about the profitable points of buying and selling cryptocurrency based on a detailed analysis. Such information is distributed through special platforms, channels, chat rooms and instant messengers, which are open and closed. The first available to all, the second - only those who paid the subscription.
Each service has its own approach to analyzing the situation on the crypto market. Some use technical analysis, others are fundamental, and others have insider data. In all three cases, probability plays an important role, since trading signals do not guarantee 100% of the result to traders.
The main goal of fundamental analysis is to evaluate the cost of a cryptocurrency and determine how its course corresponds to the realities of the market at a particular moment. Also among the fundamental factors include the reputation of digital coin developers, their partnerships and long-term development plans, peculiarities of monetary policy, cryptocurrency capitalization, trading volume and transactions, price volatility and average size of commissions.
In technical analysis, the reasons why the cryptocurrency rate has changed its direction do not matter. What is important is the fact that the price moves in a specific direction in a certain period of time and within a narrow price range.
Those who have access to insider information can really make good money. Such users are warned about the plans of the major players of the crypto market to artificially raise or lower the price of a particular cryptocurrency. Trading signals come in the form of push-notifications, messages in instant messengers, social networks or emails.
Popular services of trading signals
Today there are quite a few such platforms, the Tradingview service has become the most popular: it has a free tariff, but with a time limit. The user can select signals from a large number of professional tools for analysis and customize them.
CryptoWolf is one of the first services that appeared on the crypto market, the high rates of which are justified by frequent signals. Premium subscribers receive about three trading signals daily.
Liberman Trading Signals & Tips is a telegram-bot for transmitting signals, its main advantage is the absence of monthly subscriptions, traders can only pay for the signals they use.
CoinMarketAlert is a service that offers traders for $ 15 a month to learn about changes in trading volume, market capitalization, issue of new coins and forecasts of altcoin rates in 24 to 7 mode.
Coindera is a platform that has two tariff plans for beginners and advanced users, the first is free, but with only 5 signals, the second costs $ 10 per month and promises 25 active alerts.
Bitcoin Ticker Widget is an application available on Google Play and on the App Store. With it, you can track the price of bitcoin and lightcoin, as well as independently adjust the signals and display parameters.
Signals usually come in a standard format. The message indicates the exchanges on which this signal operates, the cryptocurrency pair, the recommended purchase price with the range from and to (most often the price is indicated in Satoshi). There is also information about take profit, the price level at which cryptocurrency can be sold, and stop loss, the price level at which a digital coin is sold if its rate begins to fall sharply.
Signals should be used immediately after receiving, within the first three minutes. Experts advise not to trade on signals 5 minutes before the start of a new hour and in the first 5 minutes of a new hour. It is necessary to follow the news and remember that any high-profile event can collapse the course of cryptocurrency.
There is another way to get a trading signal. For example, on July 18, 2019, Coinbase Exchange launched a new section of statistics, with the help of which it is possible to evaluate cryptocurrency by the average duration of coin hitting on platform wallets. The Buy and Hold strategy involves long-term investment, its basic principle is that the longer the period of investment in a particular asset, the more profit it will bring to the investor.