If you are interested in trading Bitcoin, Ripple, Ethereum or any other cryptocurrencies, you’ll need some first-hand information on the currencies’ market outlook. Some detailed information that can help you buy and sell digital currencies at the right time. Note that cryptocurrencies are one of the most speculative and crazy markets. So it may be difficult for a newbie to correctly predict the direction in which a currency will move.
Traders use free crypto signals to help determine the general direction in which a crypto’s price will be moving. It helps them to determine the level of risk they face before they decide to trade the currency. Some providers will share such details to enable you make informed trading decisions.
Of course, different groups have their own mechanism of determining and releasing signals to their members. They study the technical indicators identify trends, and determine how best to capitalize on them. They also look at historical trading activities and suggest possible trading actions. Here is how traders use the signals to trade cryptos.
1) Things to do after receiving the signal
If you signed up for Free Crypto Signals, you will receive a notification from your group when the signals are released. In the notification, you’ll be told the cryptocurrencies to pair. It could be BTC/USD, BTC/ETH, or BTC/XRP. You will also receive the entry price, the stop loss, and the take profit price. You’ll also be informed whether to place a buy or a sell order.
As mentioned, some signal providers will provide explanations and background on why the signal goes a certain way. As a trader, there are two ways you can act on the signal. Firstly, you can log into your broker’s portal and place a trade in line with the signal issued. You may place the new order; enter the stop-loss limits and the exit points. But it is important to note that the signal may not remain valid forever. Some providers will give you an hour, and the day it may lapse, while others will give you the take profit price only. Whichever the case, it is important to ensure that you get out of trade once the validity of the signal has lapsed.
2) Do your own research
Once you receive Free Crypto Signals, you don’t need to place your trades immediately. The best way to use signals is to research to determine if the signal requires some modification. You will then need to perform additional research on the pair to gain more insight into what you should do. You’ll need to explore the market further to make your trading efficient.
3) Look at the alternatives
Armed with your research findings, there is one important thing you will need to do before you place your trades. For instance, if your signal provider recommends that you trade BTC/USD, you might also want to check similar pairs like out XRP/USD and ETH/USD (all USD pairs). It may provide you with some details on what to expect from the signal. Also, analyze the reasoning behind each signal before you jump into the trade.
4) Points to note
Although there are plenty of brokers that provide Free Crypto Signals, you’ll need to separate jokers from serious traders. One thing that can help you single out the serious ones is looking at the information provided about the take profit and stop-loss limits. If the signal does not give these limits, ignore them. Such Free Crypto Signals are worthless and may not help you to manage the risks.
The number of signals the broker provides per week is essential. A reliable broker must take some bit of time analyzing the signal. So there is no way they can release free signals on an hourly basis. At most, they should be able to provide 3-5 Free Crypto Signals per week. Most providers will study the market and currency pairs on Monday, so they may release the first signal late in the evening or on Tuesday. They may provide another free signal on Wednesday and the last one on Thursday. So any broker that promises to release signals every day may not be genuine.
After some time, it will be clear whether the signals are adding value to your trading efforts or not. If you are happy with them, you have the option to upgrade to the premium services. If you do, depending on the broker, you will be legible to receive more premium crypto signals per week. Thus allowing you to place more trades and make profits consistently.