In order to make money on cryptocurrency, you ideally need to know different approaches and analytical tools that will help you correctly predict market movements. 

And as a result, buy and sell certain coins at the right time to make a profit, and not lose all your funds. Those users who do not know how to trade correctly can also try to make money on cryptocurrency. Only not on their own, but on the recommendations of experienced traders. Let’s take a look at what cryptocurrency signals are and how to use them?

What are cryptocurrency signals?

Cryptocurrency signals are recommendations that a professional trader gives in his channel / chat / group on a social network.

These recommendations consist of a recommended asset entry point, as well as 1,2,3 or even 5 exit levels. For example, a recommendation might look like this:

Pair: USDT/Coin X

In (input) 4256 USDT

Out (exit) 8769 | 12555 | 24000USDT

The last line means that the price can reach all three options. However, the first option is the most risk-free. The second contains medium risk. And the third is the most risky.

If the recommendation is given not on the spot, but on a position with leverage, then the recommended leverage is also added to the information (for example, X10). As well as the stop loss price level. It means that if the position has reached this price, then it is better to close your trade with a loss, since a further fall is likely further.

What are cryptocurrency signals and the risks of such recommendations

Potential risks of cryptocurrency signals.  Photo: Gemma Evans / Unsplash.comPotential risks of cryptocurrency signals. Photo: Gemma Evans / Unsplash.com

 

When following the recommendations of traders, you should be aware of the following risks:

First, you need to find a source that gives good recommendations from really good market analysts. That is, so that all recommendations on statistics and reviews of other people have a good hit accuracy (at least from 70–80% per year).

Secondly, be careful, because now there are a lot of scammers. They can sell you access to their paid channel, but it either does not work, or the recommendations there are as bad as possible.

Thirdly, it is your personal responsibility. Remember that this is just a recommendation. It is you who decides with your own head whether to follow this recommendation or not. To buy a coin or not to buy. This means that you need to be careful and follow the classic rules of diversification and security in cryptocurrencies. Responsibility for the loss of funds on a particular recommendation lies solely with you.

Where to look and what tactics to follow?

 

It is best to look for recommendations in free thematic chats and Telegram channels. You should not immediately run and buy coins on the recommendation in the new channel. Read it for six months, chat with users. Understand that the owner of the channel is a good trader and rarely makes mistakes. And do not perform in paid channels at the beginning of your journey.

In addition, never buy a coin with all your funds, allocate up to 5% of the deposit, then in case of loss you will not feel much loss