If you’re a cryptocurrency trader and you don’t know how to select a good coin that has the potential for massive growth, then you’ll enjoy reading our best crypto signals guide for beginners.
It is no longer news that the cryptocurrency industry has turned so many average income earners into overnight millionaires. This is because successful traders are privileged to get the right information about the right time and price to buy a particular coin or token.
Although some traders have recorded certain wins while investing in random coins they chose for themselves, the strategy is never the best practice.
Traders who have very little knowledge about how the market works and what makes cryptocurrencies spike or drop, are mostly advised to employ the services of an expert, who would do the hard work of studying charts and keeping tabs with the latest industry news.
At the moment, there are tons of crypto signal providers in the market, thus giving traders the problem of selecting the right one. Many of these crypto trading signal providers have a good track record of giving out quality signals while others are only in the business for the money.
Before considering the best trading signal providers, you might need some help understanding what a trading signal is.
What is a Trading Signal?
A trading signal is a trade call researched and analyzed by an expert, which indicates what and when a coin or token should be purchased at a specific price.
Analysts usually give out vital information to their clients or subscribers after the trade is thoroughly researched, which mostly involves following news updates of the coin, as well as studying its market data.
The two main parameters that usually guide a crypto signal provider’s trade calls are fundamental analysis and technical analysis.
Financial and Technical Analysis Explained
Most crypto enthusiasts must have come across these words in the past. While it may not seem important to many, these are the most important factors that guide a signal providers’ decision about what cryptocurrency to invest in.
Fundamental Analysis, or FA, helps signal analysts evaluate the cryptocurrency project, especially its financial statements, competitors, staff strength, upcoming upgrades, and news reports, which include negative and positive.
On the other hand, Technical Analysis (TA) involves the study of cryptocurrency charts and market data to forecast the direction of the price. TA is focussed mainly on price trends, chart patterns, oscillators, and moving averages among others.
It is worth noting that regardless of how perfect or imperfect a crypto chart may look, any news like a hack incident on the project could see its price plummet drastically within a few hours after the information becomes publicly available. This is why it is important to choose a trading signal who will be among the first to have knowledge about important cryptocurrency-related information to save you from massive loss.
What is the Difference Between Trading Signal and Alert?
People tend to believe both concepts mean the same thing, and often use them interchangeably. Contrary to this misconception, trading signals and alerts are quite different.
A Trade Signal is a call to buy or sell a cryptocurrency at a given price and time, which is given by an expert based on his or her confidence in the coin’s TA and FA. The signal may also be issued to traders to tell them when to buy more or sell part of their holdings while on the trade.
Trade Alerts, on the other hand, are automated notifications about the price of a coin, usually set up by a trader to know the performance of the trade. Here, the trader may want to know when the price of the crypto will drop or rise to a certain range. to determine when to buy more, or soar above the entry price in order to sell.