Although cryptocurrencies like Bitcoin and Ethereum are significantly less volatile than they once were, the recent Coronovirus pandemic has brought unpredictable times back to the digital currency space. Much like the traditional equity and indices scene, Bitcoin has both capitulated and rebounded at unprecedented speeds in recent weeks.
After all, Bitcoin was enjoying a period of bullishness at the $10,300 mark before racing down to the mid-$4,000s in a matter of days. Now, it’s holding up firmly around the $6,000-$6,300 range – for the time being.
As a result, investors are finding it difficult to trade cryptocurrencies at present. This has resulted in crypto signal providers experiencing a rapid surge in subscription signups. In doing so, traders receive real-time signals on potential trading opportunities – all of which is facilitated by automated technologies.
Here we explore why digital currency investors are now turning to automated signals as a means to protect their bankroll from uncertain times.
Unlimited Crypto Research Around the Clock
One of the main attractions to using a crypto signal service is that it allows traders to scan the markets on a 24/7 basis without needing to lift a finger. Think of it like this. Let’s say that you have been trading BTC/USD for a number of years, and you’ve found a system that consistently works well.
However, as you’re spending all of your time analyzing a single pair, you’re potentially missing out on heaps of other trading opportunities. Learn 2 Trade – a UK-based signal service provider, explains that this is where its automated technology comes into play.
In a nutshell, the technology will scan dozens of cryptocurrency pairs around the clock, constantly looking for the formation of trends. It does so by utilizing several technical indicators concurrently – such as the Fibonacci Retracement, Exponential Averages, and Bollinger Bands.
Once the technology has identified an impending market movement, it will then formulate a trading signal. These crypto signals provide traders with a range of key data. On top of the reason behind the signal (for example, the 200-day MA surpassing the 50-day MA), the signal might suggest placing a buy order on BTC/USD when a trigger price of $6,405 is met.
Learn to Trade explains that a signal is only worth its weight in gold if it also provides the relevant exit points. At the forefront of this is the price in which the trader should install their stop-loss order. This will ensure that potential losses are kept to a minimum.
Furthermore, the UK-based provider explains that signals should also contain a take-profit price. This allows subscribers to lock-in profits in an automated manner. Ultimately, taking into account the signal’s entry, stop-loss, and take-profit trigger points, the trader can let their orders run autonomously once they have been placed.
Crypto Signal Services Becoming More and More Competitive
On the one hand, the most important segment of a crypto signal platform is the technology itself. In other words, the signals are only as good as the provider that designed the underlying algorithm.
With that being said, how do you know whether the crypto signal provider is going to make you money? After all, it’s easy to make hyperbole claims as to how successful a signal service is, but there’s no way of backing this up without testing it out yourself.
This is why would-be subscribers should only use a platform that offers a trial of some sort. Learn how to trade or get a 30-day money-back guarantee, allows traders to test out their signals without making a long-term commitment. In offering such a guarantee, it ensures that crypto signal providers are in it for the long-run.
When it comes to the signals themselves, Learn 2 Trade notes that the vast majority of its subscribers prefer to receive suggestions via Telegram. This ensures that they never miss a signal – regardless of what time of the day it comes. In most cases, Learn 2 Trade customers receive three crypto signals per day.
Flexibility is Still Possible
One of the biggest draw-backs facing seasoned investors is that they feel that crypto signals are too rigid. In other words, with signals providing the exact entry and exit trigger points, experienced traders often feel that they lose an element of control. However, it is important to highlight that these are merely ‘suggestions’.
While the trader might agree with the algorithm’s prediction, there is no requirement to stick with the exact trigger points. Instead, traders can adjust the stop-loss order price to mirror their own tolerance for risk. Similarly, this also rings true for the entry price and take-profit price.
In summary, leading crypto signal providers have experienced a rapid surge in demand in recent weeks. It’s likely that this is in response to more difficult trading conditions – notably, the uncertainties of COV-19.
In choosing a legitimate provider like Learn 2 Trade, subscribers will receive real-time notifications about a potential market movement, alongside the relevant entry and exit points.