If you think the interest in cryptocurrencies peaked in 2020, you will be surprised to know that the popularity of the digital currency market has reached new heights this year! When Bitcoin was launched almost a decade ago by the mysterious Satoshi Nakamoto, no one would have predicted the fast rise of the market. Today there are thousands of coins, and trading in crypto has become a legitimate business for many people.
If you are new to the crypto market and want to know some of the best cryptocurrencies that you can invest in 2021, this blog will make your choices easier than ever!
1. Bitcoin - BTC
$1000 invested a year ago would be worth approximately $3,401 today!
The most popular cryptocurrency in the world is still the top bet for trading and investing. Bitcoin crossed the price of $60,000 earlier in 2021 before correcting and testing the support of $32,000. With more than a trillion dollars in market cap, BTC is still the go-to cryptocurrency for traders in 2021, and the trust in the coin will only increase as more and more businesses start accepting it as a mode of payment. So if there is one coin that you can buy for the long term, BTC should be your choice!
2. Dogecoin - DOGE
$1000 invested a year ago would be worth approximately $128,993 today!
If there is one coin that can rival the popularity of Bitcoin, then it is the “meme coin” DOGE! Started as a joke by software programmer Jackson Palmer and Billy Markus, DOGE has seen the most rise in price in 2021 thanks to small-time investors and Tesla founder Elon Musk. The entrepreneur has hyped the coin so much that in May 2021, Musk’s company SpaceX tweeted about how Dogecoin funded the first rideshare journey to the moon! There is certainly some risk involved if you are trading DOGE, but the upside has no limit, and one tweet from Elon Musk can make you a millionaire!
3. Ethereum - ETH
$1000 invested a year ago would be worth approximately $10,325 today!
Created by Vitalik Buterin, Ethereum is a leading software platform entirely decentralised and allows users to build Smart Contracts and Decentralised Apps. The platform currency – Ether (ETH) is the second-largest crypto coin by market cap and popularity! During the crypto market bull-run, ETH reached an all-time high price, crossing the $4000 hurdle. Many experts believe that the technology is revolutionary and hence traders and investors have high hopes for the coin. Many trusted financial analysts such as Goldman Sachs have predicted that ETH will continue its rise and touch the price of $10,000 in the upcoming decade.
4. Binance Coin - BNB
$1000 invested a year ago would be worth approximately $20,093 today!
Binance Coin, or BNB known in the crypto market, is a token launched by the popular cryptocurrency exchange Binance. Based on Ethereum technology (ERC20), the total number of coins in the market recently crossed 200 million, making it one of the most in-demand coins in 2021. In the past year, the coin has given a fantastic 20x (times) return on investment and will continue to be an attractive choice for investors in the coming years too.
5. Ripple - XRP
$1000 invested a year ago would be worth approximately $4,263 today!
First released in 2012, Ripple is a prominent digital payment network and a cryptocurrency created by Ripple Labs. XRP token was released to make decentralised payment for financial transactions easy, and in the last decade, it has become one of the most popular coins in the crypto market. In 2021, XRP has already given 4 times return on investment, and with the market going past $25 billion, the future of XRP is bright!
6. Cardano - ADA
$1000 invested a year ago would be worth approximately $18,343 today!
ADA is an internal cryptocurrency of Cardano, an open-source project built to enable users to easily create smart contracts on the blockchain platform. In 2021, ADA saw a massive rise in its market cap and popularity. Developed by Ethereum’s co-founder Charles Hoskinson, the team developed the platform in 2015 and finally launched it in 2017. Since then, ADA has been in tremendous interest from traders and investors, taking the market cap beyond $40 billion, signalling that there are bigger targets to achieve for the ADA cryptocurrency.
In May and June 2021, the cryptocurrency market has seen a healthy correction of prices after a tremendous bull run. However, if you are disheartened that you missed out on some beneficial wealth creation opportunities, don’t give up just yet! Market experts believe that some popular coins have bottomed out, and their journey to a new all-time high will begin again!
Two things that have dominated the world news in the past year, the COVID-19 pandemic and the rise of Cryptocurrency! While the former has proved to be damaging, the latter has been one of the biggest reasons many people have become financially independent. Just think about it, when was the last time you spent a week without hearing about the roaring prices of Bitcoin or read the business section of a news website without any article about how Elon Musk is tweeting about Dogecoin?
In the United Kingdom, the interest in coins such as Bitcoin and Ethererum has increased exponentially. According to the data available on Google Trends, the searches for cryptocurrency trade and investing in 2020 saw a rise of over 300 per cent, clearly showing that people are curious to know the hype and see it as an excellent opportunity to build wealth!
1. Positive Cryptocurrency Trends
A. Patient Investors Reap Rewards: The growing trend in cryptocurrency is that new traders have been involved as the prices have soared. Two or three years ago, the crypto industry was in chaos. Many large capital coins such as Bitcoin and Ethereum were struggling to move beyond a certain resistance level, making it too risky for smaller investors. However, today the trend has reversed, and people who invested money just before the pandemic hit the UK have seen their investment turn 3 or 4 times in just over 15 months!
B. More regulation is On the Way: While a lot of movement in the crypto industry still goes on unregulated, there are strong chances that the regulation will improve soon. For example, some Governments have already started introducing tax after seeing an opportunity to grow their revenue. Currently, one has to go through a standard Know Your Customer (KYC) process that allows transactional tracking and adoption of legislation.
C. Better Risk Assessment: Due to the volatile nature of cryptocurrencies, newer traders are often confused about assessing their risks. Large capital coins such as Bitcoin, Ethereum have seen wide swings in their prices, making it difficult for less learned investors to understand the risks. Today, however, there are plenty of analytical tools and economic research institutes that track, analyse and accurately assess trading and investing risks.
2. High-Risk and Higher Returns
Despite the high risks, there has been a 558% (from 2018) rise in people from the UK investing in cryptocurrency. There is no doubt that the risks involved in trading and investing in digital asset technology are high. But so is the possibility of getting returns, and that is why many people in the UK are willing to take the leap of faith and invest heavily. For example, just in April – Bitcoin had a low of $49,059 and managed to touch a new all-time high of $63,739; that is a swing of more than 35% in just two weeks! Furthermore, analysts from JP Morgan predict that Bitcoin could rise to $130,000, making it an attractive investment even if you start today! Essentially, the risks involved in crypto investing are the same as investing in Gold or Stocks if you begin without knowing how the markets work.
3. Global Acceptance - Can Cryptocurrency replace traditional Money?
A few years ago, the naysayers of crypto always stressed that you couldn’t even buy a cup of coffee with the coins. Today, however, the acceptance of crypto as a genuine mode of transaction has increased by leaps and bounds. From fast food to automobiles, various brands have started accepting Bitcoin as a legitimate mode of payment. In 2020, businesses such as Paypal, Xbox, Tesla led the way in normalising paying in crypto coins. On the other hand, many financial institutions such as Morgan Stanley, Goldman Sachs and Barclays have made it easier for their customers to invest in crypto in a case and secure manner. This trend will encourage more brands to treat cryptocurrencies as a legitimate alternative to traditional money.
4. Improved Cryptocurrency Security
The risks involved in holding digital currency are different to that of owning bonds, stocks or cash. Over the years, frauds and hacks have led to crypto investors losing a large chunk of their investment; these risks have reduced significantly, but as the technology has improved. Trusted corporations such as PayPal and Square have made it easier for people in the UK to buy and sell crypto securely without having to worry about losing their money to blocked transactions. With so much information available on the internet today, people are expected to make decisions regarding any investment in cryptocurrencies based on sound knowledge of the market risks and the technology.
Cryptocurrency has been the talk of the town ever since the early months of 2020. In the beginning, most of the headlines were grabbed thanks to the market reports by credible financial institutions such as Goldman Sachs that put trust in the legitimacy of the major cryptocurrencies such as Bitcoin and Ethereum. Then, as the stock markets worldwide crashed, the crypto market saw tremendous gains, with many coins hitting All-time-High (ATH).
Today, many businesses accept Bitcoin as a mode of currency, and this is helping bring in new investors who may not fully understand the difference between Bitcoin, Ethereum, Tether and why some coins are considered as “stable” when compared to others.
Difference between Tether, Bitcoin and Ethereum
Bitcoin, Ethereum and Tether use blockchain technology, but there is a significant ideological difference between Bitcoin, Etheterum, and Tether.
Tether or USDT is one of the few “stable” coins and has been around since the early months of 2014! The main difference between Tether and cryptocurrencies such as Bitcoin and Ether is that, unlike the unstable coins, USDT is backed by a 1:1 ratio of the U.S. Dollar and managed by a single company, Tether Limited. Till today, the management has not proven the claim that an equivalent amount of USD backs every USDT coin. Despite the criticism, Tether has become one of the most popular coins today.
Disadvantages of Tether
Fewer Pair-Trading Options – One of the biggest cons of USDT is that you cannot trade them on every popular trading platform. This limits the pairing trades, and with hundreds of coins in the market, you can only use 18 to 24 trade pairs using USDT.
No Decentralization – Many traders have heavily criticised USDT coins as many ardent crypto-traders do not believe it is genuinely transparent. It does not follow the decentralisation adopted by Bitcoin and Ether. A single Company owns the coin – Tether Limited and thus goes against the morals of a decentralised financial system that other coins follow.
Created in 2009 by Satoshi Nakamoto, Bitcoin is the most popular and the first-ever decentralised electronic, peer-to-peer currency. As a result, Bitcoin is the most prized cryptocurrency today. It started the revolution in finance and kick-started the need for currencies that were not controlled by traditional agencies such as the Government or Banks. Bitcoin works using encryption techniques that enable people to send and receive money. Earlier in 2021, Bitcoin reached an ATH crossing the hurdle of $63,000.
The main advantage of Bitcoin (BTC) is that it is decentralised and offers complete transparency to every trader and investor. Moreover, being the most popular cryptocurrency, it can also pair with altcoins such as Ether.
Disadvantages of Bitcoin
High Volatility – Apart from being one of the most popular coins, BTC is also highly volatile. Traders can earn and get rich when the price is going up, but when it starts going down, the price of Bitcoin can come down crashing fast, thereby leading to huge losses if not appropriately monitored.
Launched in 2015 by Canadian-Russian programmer – Vitalik Buterin, Ethereum is a currency that provides Ether token and is used by users to create decentralised applications. It is the second most popular cryptocurrency and has gained massive backing from investors due to the bright future of technology and Ethereums application in the world of creating smart contracts. In 2021, ETH reached an all-time high of more than $4000/ETH coin taking its market cap to record highs, just behind Bitcoin.
The main advantage of trading or investing in ETH in 2021 is that the upside is a lot compared to other altcoins. Today, ETH is trading within the range of $2200-2500 and many traders believe that there is a strong possibility that ETH will reach $10,000 by 2025. However, since Ether is also an unstable coin, there is a lot of volatility involved and when Bitcoins prices crash, many altcoins, including ETH, also tend to drop in value.
There is no clear answer to which is better: Bitcoin, Ethereum or Tether. The trader and investor have to decide which cryptocurrency is best depending on the risk appetite and the trust in the coins.
From Elon Musk to your neighbour, everyone is discussing Bitcoin and investing in the crypto market that has stormed the financial ecosystem since 2020. Much of the interest in Crypto or digital currencies is down to the fact that they are largely unregulated and the chances of becoming rich are much faster than traditional investments such as the stock market. Ever since the global markets began to crash because of the COVID-19 virus, the Cryptocurrency market cap has boosted with many coins reaching an all-time high in prices.
Earlier in June 2021, Bitcoin gathered headlines as El Salvador became the first country to use cryptocurrency as a legal tender (in which people can trade it to buy any commodity or asset). Many experts see this as the beginning of a world where Cryptocurrencies are widely adopted by countries and thus the interest in crypto has skyrocketed! If you are one of the millions who wish to invest and build wealth from cryptocurrencies then this blog will help you understand everything from how the digital currency trend started and how cryptocurrencies work!
What is a Cryptocurrency?
There are many “guide to cryptocurrency” white papers and articles available on the internet, but none of them actually explain how cryptocurrencies work by showcasing a practical example or a use case. The reason everything about the cryptocurrency market seems mysterious is because of the whole “decentralized” blockchain technology that we will explain in this article later. If you are new to the crypto market and want to know what the hype is about, understand this – a cryptocurrency is a form of digital money that is very similar to traditional money spent via PayPal or debit and credit cards.
These digital currencies such as Bitcoin, Ethereum, Ripple, Dogecoin, etc can be bought and sold on the crypto market and also be exchanged online to buy commodities and assets. The entire ecosystem of Cryptocurrency is based on Blockchain that acts as a transparent public ledger as well as the technology driving the security. Whenever someone buys or sells any coins or tokens on the market, the transaction is recorded in the public ledger and fully secured by “cryptography”. The main advantage and the reason why people are hoping for a bright future for the cryptocurrency phenomenon is because of the fact that the ecosystem is controlled by the users and computer algorithms and not regulators such as banks and governments. To understand the world of cryptocurrency, we must first get fully acquainted with how Blockchain technology works.
What is Blockchain and how is it related to the Cryptocurrency market?
The easiest way of understanding Blockchain technology is looking at it as a decentralised bank. The ledger-keeping is completely transparent and thus is fully accessible to the users. Whenever there is a transaction on the market, the record of the same is sent to users that “mine” the coins by using software to solve the complex puzzles and get a newly mined crypto coin such as Bitcoin.
The security of this entire cycle of blockchain technology depends on cryptography, which stores them in codes that are very hard to tamper with. Currently, there are crypto miners around the world trying to solve these puzzles and get hold of coins that can only be awarded to the first person to successfully solve and submit the puzzle that others can verify and authenticate. Currently, there are thousands of coins available, but the ones valued more than others are popular coins such as Bitcoin, Ethereum because they have limited supply and the comparative demand is more.
How Do Cryptocurrencies Work?
Since there is no regulation over the market, the cryptocurrency market works in the Peer-to-Peer methodology transactions and is distributed via cryptocurrency exchanges that distribute the coins via Blockchain hosted on computers worldwide. Users can buy, sell, hold or transfer the cryptocurrencies to other users by paying in traditional fiat currencies such as USD, EUR, GBP, etc. The most prominent cryptocurrency in the market is Bitcoin while other coins such as Ethereum, Ripple, Matic, Litecoin, etc. are called “altcoins” meaning alternate coins.
How Does one Start Trading in Cryptocurrencies?
Buying, selling, holding and transferring cryptocurrency such as Bitcoin is similar to how the traditional stock market works. Just like how one can easily buy stock of Apple, Google, etc. businesses, people can buy coins and tokens on the crypto market using many exchanges such as Binance, WazirX, Bitbns, CoinDCX, etc. These exchanges and brokers enable users to add traditional money such as U.S. Dollar, British Pound, Euro, Yen, Indian Rupee, etc. to the wallet and use this to trade the cryptocurrency of their choice on the market.
Once you open an account and add money to the wallet on any of the exchanges available in the market, you can buy, sell, trade or execute a P2P cryptocurrency transfer of your choice by paying the LTP (last traded price). Just like any other asset traded on the stock market, users can either choose to go long, that is “buy” or go short, that is, “sell” coins from the available coins. Most brokers and exchanges charge a fee ranging between 0.3% to 1% of the entire transaction.
How Many Cryptocurrencies Are Available to Trade?
There are more than 4000 cryptocurrencies available for trade on the crypto market currently. Most of these currencies have very insignificant market capture as they are tokens created by a particular business. The most popular cryptocurrency is Bitcoin which is trading at $36,100 as of June 2021 holds a total market cap of more than $750 billion. The second-most valuable coin available on the market is Ethereum which is trading at $2250 as of June 2021 and has a market cap of more than $321 billion. The total market cap of the entire cryptocurrency ecosystem is close to $1.7 trillion and had reached a high of $2.2 trillion in May 2021.
Why is Trading In Cryptocurrency so Popular?
One of the biggest reasons for the popularity of cryptocurrency trading is because it is unregulated. Since there is no central authority controlling the price of the coins, the price change of assets such as Bitcoin, Ethereum etc. can change more than 100% in a single trading day as the price is determined by the interest of the user. If more users are going long by “buying” a certain cryptocurrency, the price can shoot up rapidly. On the other hand, if many people are shorting a particular coin by “selling” then the price can crash within hours. Some reasons why the cryptocurrency is considered a valuable asset are:
- Many believers in Crypto and Blockchain technology think that digital money can replace traditional currency in future.
- The decentralised nature of the market transfers the power of deciding the price into the hands of the users as opposed to central authorities such as banks of the government.
- The number of available coins such as Bitcoin and Ethereum is limited and thus holding a bitcoin today will have a much higher value a decade later when there will no longer be any new Bitcoins.
- The volatile nature of the market means that traders can earn much more if their prediction of price going up or down, comes correct. Many people who bought Bitcoin when it was just $100 in 2014 are millionaires today as the price of one Bitcoin is close to $36,000 today.
Digital money, also known as Cryptocurrency, is not an alien concept to anyone today. Whether you are at work, with friends or surrounded by your family, the topic of investing and trading in Cryptocurrencies such as Bitcoin, Ethereum, Dogecoin (Elon Musk fans!) is likely to come up during conversations. There are many reliable Cryptocurrency exchange and trading platforms available to investors and anyone is just a log-in or a mobile app download away from your first purchase.
Today, many cryptocurrency exchanges offer peer-to-peer (P2P) crypto exchanges that enable users to directly transfer digital currencies into the users’ account without the interference of any financial or governing authority. P2P Cryptocurrency exchange gives more power to the users and thus has grown in popularity ever since its introduction.
How Does P2P Cryptocurrency Exchange Work and Is it Safe?
When you trade any cryptocurrency such as Bitcoin on an exchange platform, you pay fiat currency (such as USD, GBP, EUR, etc) for the digital currency at the market rate. But, in P2P Cryptocurrency exchange, users can set the price and choose the suitable mode of payment (such as PayPal, credit card, bank transfer, etc) between themselves and buy or sell the cryptocurrency by paying a small amount as a fee to the exchange.
P2P exchange is a swift way of trading in crypto but it relies on the honesty of the users. Does this mean that it is unsafe? Not at all. Many exchanges offer support to users if someone has sent insufficient money or does not send money at all. In most cases, the transaction goes on normally, without any hassle. If you are wondering which are the top P2P cryptocurrencies exchanges in 2021 then this is the only blog you will need to read!
Best P2P Cryptocurrencies Exchanges in 2021
A. Binance P2P (Global)
Without a doubt, Binance is the most popular cryptocurrency exchange and trading platform in the world right now. The Binance B2B exchange has the biggest network, with traders in almost every country and thus it is the go-to platform for Peer-to-Peer cryptocurrency exchange. Currently, the platform supports more than 140 digital currencies and Binance is one of the safest places to use P2P exchange. One of the advantages of using Binance P2P is that if traders are holding their token – Binance coin, then the platform does not charge any exchange fees!
B. Remitano (Global)
Based in Singapore, the Remitano cryptocurrency exchange platform was founded in 2015 and has been a popular P2P crypto exchange platform ever since. They have the best User Interface (UI) design that enables traders to swiftly trade on the market or amongst other users. Remitano is also considered as one of the safest and most secured exchange platforms with top-notch customer service as well. The only discouraging thing about the platform is that they charge a fee for every deposit or crypto withdrawal. For P2P exchange, their fees stand at a standard 1% of the transaction.
C. Localbitcoins (Global)
Localbitcoins was founded in 2012 and is currently headquartered in Helsinki. It is one of the biggest P2P cryptocurrency trading platforms in the world right with many traders using the platform for safe and secured P2P exchange. This decentralized platform offers more than 240 digital currencies and is operational in more than 200 countries as of 2021. For P2P trade advertisements, Localbitcoins charges a 1% fee from the buyer and the seller.
Launched in 2015, Paxful is a relatively newer P2P cryptocurrency exchange but it is one of the fastest and most user-friendly platforms right now. Traders can buy or sell more than 150 digital currencies on the platform as it has a highly secured network. One of the best things about Paxful is that traders can add money from 350+ modes of payments such as bank transfer, credit & debit cards, Paypal, CashU, Western Union, etc. Paxful charges a 1% transaction fee to the sellers but considering the seamless experience on the platform, and the safety of the transaction traders do not mind this!
E. HODL HODL
If you are looking for a P2P cryptocurrency exchange that does not have stringent Know Your Customer (KYC) registration rules then HODL HODL should be the choice of platform for you! It is a good example of a non-custodial crypto trading platform. Many traders prefer the HOLD HODL platform because of the low fees. The platform charges only a 0.3% trading fee (as opposed to 1% charged by many other exchanges). Thus, this is the most suitable platform for crypto traders that wish to stay anonymous and do not prefer strict KYC norms.
F. Localcoinswap (Global)
Localcoinswap is another option for traders that want to use a P2P cryptocurrency exchange that does not require the user to go through the entire KYC process. Registered in Hong Kong, the exchange platform was launched in 217 and has gained quite prominence in Asian countries. Localcoinswap also accepts many modes of payment including Alipay, IMPS, PayTM, bank transfer, etc. One advantage of using Localcoinswap is that the buying and selling are free but if you create an advertisement to buy or sell then they charge 1% of the transaction as a fee.
Currently headquartered in Luxembourg, Bitstamp was launched in 2011 and has been offering P2P cryptocurrency exchange since 2013! It is a preferred platform for traders from Europe and particularly, the UK and offers more than 200 digital currencies for a P2P exchange. Bitstamp offers a fast, safe and secured exchange and has a great reputation for being trader-friendly (customer support as well as coins supported). You can easily trade coins such as Bitcoin, XRP, ETH, Bitcoin Cash, etc to safely initiate a P2P exchange.
When we talk about top P2P cryptocurrency exchanges in 2021, there are plenty of options available (as you can see from the list mentioned above!). All of them are secured, safe and offer quick customer support in case of any discrepancies. Which P2P exchange platform to choose from the list, completely depends on the individual trader. Some are more suitable for traders looking to stay anonymous, while others are preferred by traders looking for high security.
If you have acquainted yourself with the cryptocurrency market, you must have come across someone in your circle telling you about “crypto signals”. The cryptocurrency trading market is extremely volatile. The chance of the trader making 20-30% profit on the premium in a single day is as likely as the trader making an equal amount of losses. As a result, many traders prefer to take advantage of the “crypto signals” that are generated by pre-defined systems.
The price-action of cryptocurrency and the psychology of trading Bitcoin, Ethereum, Litecoin, etc. is the same as trading stocks of companies. Many traders believe that following crypto signals is a great way to trade in the crypto market and thus they closely follow different free and paid signals that provide trade details such as buy price, stop-loss price, exit price, etc. This beginner’s guide about crypto signals will provide every information right from how crypto signals work, the advantages and how to make the best use of these signals for a successful trading journey.
What are Crypto Signals and How Many Types of Crypto Signals Are There ?
Crypto signals are a set of instructions that are sent to traders and alert them about “buy” or “sell” signals of particular coins such as Bitcoin, Ripples, Ethereum, Polygon, etc. These crypto signals can either be automated or manual, let us understand the difference between the two.
A. Automated Crypto Signal – The central aspect of automated crypto trading signals to understand is that they are generated by different software. There are many expert traders and software coders involved in developing the algorithms and the software leverages different price and trends indicators to deliver buy or sell signals. Taking help from the historic data of different coin-currency pairs also helps the software to catch patterns before it happens. Automatic crypto signals remove the human-sentiment element out of the trading aspect and completely rely on the price-action indicators.
B. Manual Crypto Signal – Manual signals work on the same financial principles but instead of software, they are created by traders, researchers and experts. Crypto trading experts study the market and the price trends to develop indicators and charts that highlight the best time to enter and exit a trader for crypto coins such as Bitcoin, Ethereum, Cardano, etc. These crypto signals usually offer a greater risk to reward ratio as the traders take into account factors such as recent industry-related news.
Technical Elements Involved In Every Crypto Signal
Now that you have understood what crypto signals are and how automated signals differ from manual signals, it is important to understand how these signals are broadcasted to the traders. Every crypto signal has a set of technical instructions that depend on the price of the crypto coin. The traders receiving these signals are expected to follow instructions and information such as:
A. Name of the Cryptocurrency: The first and foremost thing to check is the name of the specific coin that the signal is informing about. Some of the popular coins are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Polygon (MATIC), Cardano (ADA), etc. There are more than 200 widely traded crypto coins and thus it’s important to note which coin is being targeted in the crypto signal.
B. The buy-in price: The next thing to check is the suggested buy-in price mentioned in the signal. All signals will have a specific buy-in price for different coins.
C. Target Sell-price: The aim is to make a profit and the sell-price targets tell the traders which is the ideal price to sell and book profits in the trader. It is important to note that sell-targets are very price sensitive and thus it is important to target the exact price.
D. Stop loss: Despite the expertise of the software-generated automated crypto signal or the experienced trader sending a manual crypto signal, not every trade is going to reap profits. Some trades may not work and for such traders, it is important to exit the position at the stop-loss price mentioned in the signal!
Understanding How Crypto Signals Are Broadcasted to the Traders
By now, you must have fully understood what crypto signals are and how the technicals of trading blend into every crypto signal provided by the experts. So, let us take a look at the different ways that traders can receive crypto signals from experts. Access to these trade signals can be obtained by joining various groups. Instant messaging application Telegram is the most popular mode of broadcasting crypto signals today.
The easiest way of joining such Telegram crypto trading signal groups is by finding the best ones and contacting the admin of the group. On contacting the admin, you will either be added to the group or asked to pay a certain fee to join it. Here is the main difference between free and paid, the two main types of crypto signal groups:
A. Free Crypto Signals Group – Many experts have free groups that are created to show the interested traders how good the calls from them are. These free Telegram crypto signal groups will have many people and the admins will periodically show buy or sell calls that turned into good profit for their paid subscribers. Some admins will also provide a few crypto signals on the group in real-time to give them a glimpse of the profits they might earn if they choose to join the paid group.
B. Paid Crypto Signals Group – When traders become aware of automated or manual crypto signals groups that have a good track record of giving profit-making calls, they can shift from a free spectator to a paid subscriber. Once you pay the entry fee to the admins, you will be added to the paid crypto signal group and start receiving premium trader signals. The length of the subscription depends on the providers. Some may charge per month while others can have a 3-month subscription plan.
What are the Benefits of Crypto Signals to the Traders?
The obvious benefits of joining crypto signal groups are that the traders can get expert advice about the market and trades. But, many traders join free groups to get access to other benefits that will help them in their trade journey as well! Of course, the benefits may vary from group to group but here are some of the main advantages of joining crypto signals groups.
A. Staying Updated with Crypto News – The world of crypto is as volatile as the prices of the coins! Something is going on at every minute and it is impossible to stay updated about every important news story all by ourselves. Many of the free crypto signals groups broadcast important news and the latest rumblings in the world of crypto. Let’s just say that after joining these groups, you will never miss the latest tweet from Elon Musk that impacted the price of his beloved crypto – Dogecoin!
B. Being Aware of Key Buy and Sell Levels – Another reason to join these groups is that traders can learn key levels of support and resistance for different coins such as Bitcoin and Ethereum. For example, even since Bitcoin hit the all-time high of $60,000 in May, it has fallen considerably and is currently facing huge resistance at $41,000. Understanding such price-action scenarios helps traders to improve their knowledge.
C. Discussing Technicals – Many Telegram crypto groups allow users to discuss key technicals of cryptocurrencies. Admins encourage participants to showcase their analysis and charts that can trigger a discussion about the patterns and price trends. Understanding how expert traders think and analyse crypto technicals is one of the best ways of learning more about trading and making the right trades at the right time!
We hope that this article was informative and showcased everything you needed to know about crypto signals and how traders can take advantage of them. These groups provide timely trades and if used wisely, can turn a healthy profit for traders!