Why Cryptocurrency Trading?
Cryptocurrencies have opened the possibility to get into the shoes of a real trader for many people. Cryptocurrencies are traded 24/7 without any breaks. Nowadays, even a grandmother in a village can do it, as long as she has a stable Internet connection and a smartphone. Trading on the cryptocurrency market is always a big risk, but also a big profit.
If you wonder why people choose the cryptocurrency market over the stock market or any other for getting income through trading, it’s mostly because of the opportunity to earn 3-4, or even ten times fold of the investment. It isn’t easy as it seems, and there’s an option of losing all funds without proper knowledge and risk management.
Is it too late to start trading?
Blockchain technology is still in the very early stages of development and is taking its first steps. However, the adoption grows and accelerates with time. It took 75 years for the first 100 million users of telephony to appear, which is not comparable to the Internet, which got its first 100 million users in 7 years, Facebook in 4 years, and Instagram in just two years… We live in a time of opportunity that blockchain technology and the cryptocurrency market gives us, and it’s worth trying of taking advantage of it.
Signals in the cryptocurrency market
There is a concept in the cryptocurrency market that can be summed up with the word “Signals”. A Signal is a trading recommendation, which implies a profitable trade forecast, with clear parameters for entering and exiting the trade. Trading recommendations are formed by experienced traders in the cryptocurrency market. Signals can be paid or free. For example, consider StormGain exchange, they offer a crypto trading signals service for their customers.
StormGain offers cryptocurrency trading signals for their users
The trading recommendation includes such parameters as the trading pair, buy and sell price levels. In an ideal scenario, the price level for placing a stop-loss order (an insurance order to sell), in case the price movement goes against the expectations of the trader issuing the Signal, in the opposite direction. Sometimes traders attach a chart with their chart for confirmation of the parameters from the Signal and other things which, in their opinion, affect the trade potential.
What are the signals?
There are three types of crypto trading signals:
1) Trading recommendations for regular trading.
These are the Signals for transactions in altcoins (everything that is not Bitcoin) without leverage, counting on the short and medium-term.
2) Trading recommendations for margin trading.
Deals with leverage (when one borrows money from the exchange for conducting trade at a certain percentage) with a short- and medium-term perspective. Such type of trading has higher risks but also a higher potential for receiving high profit.
Most often, such recommendations are made on transactions on the main digital asset of the cryptocurrency market – Bitcoin, but today it is already possible to trade with the leverage of a large number of other cryptocurrencies.
3) Investment recommendations.
Recommendations oriented to get high profits on assets for the medium and long term without active actions.