The forex signal industry has been the forerunner of crypto signal systems, which have become very popular with the growth of retail trading and the growth of the cryptocurrency market in the last decade. The volatility in the cryptocurrency market makes it almost necessary to get a second opinion from professional traders, as most cryptocurrency traders/investors do not understand the fundamentals behind cryptocurrencies and the blockchain technology behind them. Crypto trading signals are recommendations to buy or sell a cryptocurrency token at a certain price, which must include certain parameters, such as take profit and stop loss targets, to be considered complete.
Are cryptocurrency trading signals important?
So today, when cryptocurrencies are becoming more and more popular, you should choose carefully before deciding to invest in a certain project, considering the fall of Terra LUNA and UST. Some cryptocurrencies that are based on real projects like Solana (SUN), Fantom (FTM), Ethereum (ETH), Polkadot (DOT), Binance Smart Chain (BSC), etc. they are good to start with because you are sure they will progress and have a bright future. They are projects with a good base and a lot of potential.
With the new crypto tokens, you can earn high income at a lower launch price, although they are riskier. But these need extensive research by professionals because they are highly technical projects, which means that altcoin signals from professional service providers are a must, as most people do not understand individual blockchains in depth. Crypto trading signals they allow you to quickly and, most often, successfully decide on the completion of a cryptocurrency transaction.
Bitcoin (BTC) and Ethereum (ETH) signals were the most common, but in recent years crypto signals in other crypto tokens have also become popular. The Shiba Inu coin has now become a very popular cryptocurrency with a very high trading volume which also means big moves. Signal providers can recognize the end of such moves at the top or bottom of a trend, which can provide very good trading opportunities. All categories of traders can make use of crypto trading signals, whether they are experienced or new. Experienced traders can receive new trading opportunities and expand their market reach, while new traders earn as they learn how this new market works.
How do crypto signals work?
There are many crypto trading signal providers, free or premium signals which are more complete, and each of them has a different system and is based on different research and analysis methods, although in general crypto signals fall into two main categories.
In the first category, there are altcoin signals issued by professional traders who analyze the crypto market, including all of the above price action and trend information from traders. Followers just need to copy the signal as displayed on their crypto broker platform.
In the other category, crypto trading signals are based on computerized market research. Expert traders help build automated crypto signal systems to read chart patterns and provide the signals. One of the biggest benefits of automated systems is that it removes the contradictory effects of human psychology, which could sometimes affect trading performance.
How do we evaluate crypto projects?
At FX Leaders we have a team of experienced traders and analysts who perform technical and fundamental analysis, as well as the sentiment of the entire crypto market that drives crypto most of the time. Sentiment and technique are visible on the charts, while fundamentals are analyzed and published by our analysts. Market cap is an important metric for cryptocurrencies, though it doesn’t always tell the story, as tokens with a large market cap find it hard to gain much value. With tens of thousands of cryptocurrencies in circulation, project ranking and market listing are also important factors. Other metrics are trading volume which measures the value of coins being bought and sold on a daily or monthly basis, with our analysts keeping an eye out for medium or large projects with low trading volume meaning the project is not doing well. Liquidity is also important as it shows how easy it is to trade a crypto asset for cash or other assets whenever you want, especially on low volume projects.
Comparing the circulating supply to the total supply shows how many coins are left to be mined/minted. If the circulating supply is close to the total supply, then the value of the cryptocurrency should increase. The developer team is also taken into account as they are the most valuable asset, especially for newer projects. The importance of community cannot be underestimated either. Dogecoin and Shiba Inu rely heavily on their community which took these projects to great heights.
The white paper, which is quite technical for normal people, is also one of the most important documents for a crypto project. Shows the project roadmap and provides information about the internal workings. Understanding the utility and use case is also important for the performance and long-term viability of a crypto project. If the project attracts a lot of funds and has strategic alliances, then this is another positive sign. in the long-term.
How to read our crypto signals
reading ccrypto trading signals it is quite easy for traders who have a very basic understanding of the cryptocurrency market. All the followers have to do is copy the data as it is provided on their trading platforms as soon as possible, so that there is not much deviation of the price from the entry price of the crypto signal. One of the latest Bitcoin signals we gave was displayed in the following format:
BTC – Sell – Entry Price ($30,500) – Stop Loss ($31,500) – Take Profit ($29,000)
- The crypto asset to trade (BTC)
- The action to trade (Buy or Sell)
- The entry price of the asset (30,500)
- The stop loss target ($31,500)
- The Take Profit Target ($29,000)
All the information needed for the trade is included in the Bitcoin signal above, where the asset to trade is BTC, the stock is to sell, the entry price is $30,500, the stop loss price is $31,500, and the price take profit is $29,000 with a risk/reward ratio of 1:1.5. This is a short-term signal that it closed within a day as the targets are considerably small for Bitcoin. In addition to these types of signals, there are also crypto-only buy signals and sell signals. Buy-only signals are issued during an uptrend, when a signal service predicts that price action will be bullish in the future and gives a buy recommendation, although the trader has to decide for themselves where to close the trade. The sell signals are just the opposite, as analysts predict a pullback in the price of cryptocurrencies, so they recommend selling with an open take profit and stop loss.
Telegram for Signals
Telegram has become a popular platform where traders and trading signals post their trading ideas for followers to copy, having created a crypto community. You can find new trading opportunities without having to do the analysis or follow the markets yourself. There are signals for all kinds of cryptocurrencies on Telegram, such as Solana (SOL), Fantom (FTM), and Cardano (ADA) signals. There are all kinds of signal providers on this platform, some serious and some not so professional, some offering their service for free and some paying a fee.. In 2015, Telegram launched a platform for third-party developers to create bots, which means there are also automated signals on this platform in addition to channels, groups, and stickers.