It is important that you learn how to read crypto signals to increase your chances of earning returns on your crypto investments. Basically, these signals serve as a guide to help you select the cryptocurrency that is likely to be most profitable depending on your goal. If you are a crypto beginner and are wondering how to read crypto signals, then this guide is for you.
What are crypto signals?
Crypto Signals are a set of specific instructions that are sent out from an experienced group to less experienced people telling them what crypto token to buy, the price to purchase it at, the sell-targets, and what price to fix the stop loss at. Essentially, these signals are proposed crypto trades that the provider has already studied themselves and believes that there is a very high possibility of making a return.
In simple terms, crypto signals are ideas or suggestions on how to trade selected cryptocurrencies for a stipulated price and at the stipulated time. A signal will generally contain this information:
The cryptocurrency to purchase – The signal will indicate which cryptocurrency should be purchased, e.g. ETH, BTC, XRP
The buy-in price – The specific price you should push to buy the token at
The sell-targets – The specific price you should sell the token at in order to gain a profit
Stop losses – An instrument to help you exit your position automatically to reduce losses
Crypto trading signals are generally trade recommendations. They are primarily generated by a professional crypto analyst or group of analysts with the use of technical and basic analysis to determine potentially promising trades in the crypto market.
Crypto trading signals are generally disseminated via different channels like Telegram, Discord, or even email. Primarily, they are used by both crypto traders and investors to acquire a competitive edge in the crypto market. They are also used to make more informed crypto trading decisions.
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How to read crypto trading signals
Reading and interpreting crypto signals can be very complex and require you to have some level of awareness of technical analysis and how the crypto market works. Nonetheless, we’ve provided some basic steps to guide you through the process:
1. Look for the entry price
Trading signals generally contain the entry price (the suggested price for individuals to buy or sell a specific cryptocurrency).
2. Check the stop-loss price
The stop-loss price is the specific price at which you ought to exit the crypto trade if the market shifts against you. Basically, it is a risk management mechanism that helps to limit your losses.
3. Analyze the market sentiment
Trading signals frequently come with an in-depth market analysis describing the trade’s reasoning. It is important for you to read and understand this analysis if you want to make an informed decision.
4. Look at the take-profit price
This is the specific price at which you ought to exit the trade to accept profits. Generally, take-profit prices are higher than the set entry price.
5. Assess technical analysis
Crypto trading signals are frequently based on in-depth technical analysis, which has to do with studying charts and different patterns to foretell market trends. If you’re not familiar with technical analysis, you may have to research it to have a better understanding.
6. Monitor the trade
Once you enter the trade, it’s very important to always monitor it closely to make sure that you exit from it at the correct time. Watch the market closely and be ready to exit the trade if the crypto market shifts against you.
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How to get crypto signals
As we stated earlier, there are two main ways you can receive a crypto signal. They are discussed in the paragraphs below.
1. Telegram
Telegram is a popular social media app that lets you immediately send messages and chat with others. Although similar to WhatsApp, Telegram is however very distinct in its bot functionality. This function makes the platform able to get programmed and designed to deal with messages automatically.
Telegram users can receive a crypto call whenever it has been set up on the platform’s bot. Also, users can set trades automatically without signing into their crypto exchange account.
2. Email
Although this method is not as efficient as using Telegram’s bot, email users can still receive crypto signals in their mailbox. Basically, experts can still send a crypto signal to people who don’t make use of the Telegram app.
If you don’t check your mail frequently, you may miss out on all of these crypto signals which may comprise the trade that can give you a very huge return.
Where can I trade crypto?
As the best crypto exchange app in Africa, Bitmama offers a secure marketplace for crypto enthusiasts. Perform activities like crypto exchange, crypto staking, and creating virtual dollar or crypto cards for online payment.
If you want to figure out the cryptocurrency to purchase, the specific price to buy/sell, and the stop loss, then you have to learn how to read crypto signals. It’s worth stating that crypto trading signals are not a foolproof way to make profits as a crypto trader or investor. Hence, it’s crucial to do your own in-depth research and make your own judgments.
Nevertheless, crypto trading signals are very helpful if you’re still a beginner in trading or just want to save time that will be spent on market analysis.
Get started with trading today by downloading the Bitmama app.
