Crypto trading is a profitable instrument to generate income from the market’s volatility. Successful traders learn a lot of information about crypto coins and do research on the factors that may affect prices, including fundamental analysis, technical research, etc. They also choose the best trading strategy suitable for a specific asset and at a specific time. It all takes a lot of time and effort. So when an unprepared person comes to trade crypto without enough knowledge in this field, it is no surprise that one loses more than he earns.
For beginner traders, it is really challenging to analyze the market thoroughly and to draw the correct conclusion on when to buy cryptocurrency, when to sell it, and what instruments to use for it. Here crypto trading signals come to help.
What is a Cryptocurrency Trading Signal?
Crypto signals are instructions to follow, which specify which crypto asset to buy and when, which trading position to open, at what price, etc. That is the manual on what digital coin to buy and when to sell it for those who do not know the market well enough. Signals also give the ideal level of stop-loss to minimize trader’s losses when the market moves against the supposed direction. Signals are actively used by novice traders who are not yet confident enough to decide based on their research. However, you should be careful when following signals – even programs sometimes make mistakes.
How are Trade Crypto Signals Generated?
They can be made in two ways:
- Manually by crypto experts with a lot of experience in trading, who are capable of market analyzing and crypto prediction. So they create signals or just allow people to follow their own actions.
- Mechanically – made based on coded algorithms and software that generates crypto price predictions.
From these two, the best way is to pick a signal made by humans, for they better analyze the marker and consider all the possible factors affecting crypto rates. However, the best of the best options would be to learn how to analyze the market on your own and make your own conclusions and predictions. That’s a hard job, but it’s worth that. After all, you are the only one responsible for your successes and losses.
To trade with signals, you may use the WhiteBIT crypto platform. It has a demo trading option where you may practice different strategies using various signals to see how it works before switching to real market trading. The exchange offers helpful crypto charts for you to analyze the market’s dynamics on your own to draw your own conclusions before deciding on your trading method.