There are ways to make millions of dollars off crypto trading. If you’re not invested in cryptocurrencies like bitcoin, you are missing out on potential returns of thousands of dollars. Anyone can profit from crypto trading, even first-time and beginner investors, especially those who know how to use bitcoin trading signals.
For sure-fire money-making tips, continue reading below.
What Are Bitcoin Trading Signals?
Bitcoin trading signals are suggestions. More specifically, they are suggestions with detailed information about what time to trade bitcoin, at what price to buy and sell, at what price to leave the trade, and the ideal stop-loss level.
Where Do They Come From?
Bitcoin trading signals come from one of two places. They are either created by seasoned cryptocurrency traders with a keen eye for price action analysis or are computer-generated. Computer software can be programmed to track price action in bitcoin and generate trading signals.
How to Use Bitcoin Trading Signals
There are many different types of bitcoin trading signals. However, all of them will contain the following information:
A buy or sell instruction is straightforward. It will indicate whether you should buy or sell bitcoin and at what price. That value could be equivalent to the current market price or CMP or it could be a pending order. A pending order is an instruction to buy/sell when bitcoin hits a predetermined price.
Here’s an example:
BTC Sell $3,200
This signal instructs you to sell Bitcoin (BTC) at $3,200. This particular signal does not include a stop loss meaning you decide when to end the trade.
Stop-loss/take-profit signals tell a trader when to close a trade to maximize profit and minimize loss. These signals are dynamic and may change as a trade happens in real-time.
BTC – Sell – $1.50 – TP $1.75 – SL $0.50
In this example, the signal instructs you to sell bitcoin at $1.50, with a take profit of $1.75 and a stop loss of $0.50.
Automated Versus Manual Execution
Now you know how to interpret bitcoin trading signals. Next, you have to decide whether you want to execute said signals automatically or manually.
Depending on your signal provider you can simply allow the software to connect to your trading platform and automatically generate and execute trading signals. This is a speedy way to trade bitcoin and ensure you won’t miss out on good deals in a quickly changing market. The disadvantage to automated signal execution is you are out of the loop.
In manual signal execution, you receive the signal and follow the instructions. Experienced crypto investors prefer this method as it gives them more control over their trades. But manual execution isn’t as fast and takes more experience. Check out this beginners guide to bitcoin.
How to Get Bitcoin Trading Signals
Bitcoin trading signals can be free or you can pay to receive trading signals. There are many different platforms out there, like Telegram or StormGain.
Bitcoin Trading Signals Explained
If you want to start making money off the crypto market and bitcoin investments today, start by learning how to use bitcoin trading signals. Next thing you know, you’ll be an expert trader. For more helpful content like this, check out some of our other posts.