If you live in 2021, you have a chance to earn on cryptocurrency. Why do we clarify this? Because many people still do not think of investing as a good way to earn money. It’s time to keep up with the times, and they are a little (and no, not a little) stuck in the past. Even if you are a beginner and know one word, “cryptocurrency” – you can also make great money. Because bitcoin trading signals help in this case. In these specialized channels, analysts provide reliable information about changes in the crypto market. You are also instructed on a specific time for you to make a purchase. Of course, it is important to follow the news, update the data constantly.
Explain what bitcoin is
Bitcoin since 2009 remains the most famous cryptocurrency in the world. It is the crypt of the first generation. It is the first and flagship cryptocurrency, the digital money that works without a regulator (for example, the central bank). In principle, it works without government participation. Bitcoin is not headed by any person or organization that has a responsibility for the currency. Satoshi Nakamoto created this crypt – at least he has the glory. The author published an article describing the fundamental future. Some consider the text to be similar to a manifesto. Digital money fits into one person’s account. And what about banks, PayPal, payment systems? They are not needed. We can buy bitcoins, pay, and sell too.
Why do assets fluctuate?
One of the main reasons for the price fluctuation of any asset is a change in the balance of supply and demand. Anything can affect it. Among the main factors:
- the behavior of major players in the digital industry;
- exchange rate fluctuations of other cryptocurrencies;
- legislative changes in different countries;
- news background;
- regulatory bans;
- the emergence of new projects.
And a thousand other factors that ordinary traders can not predict. Thus, trading signals we use to form an investment strategy.
What it is and how it works
Trading signals are recommendations on:
- profitable points of purchase;
- sale of cryptocurrency made based on a detailed analysis.
Traders disseminate such information through:
- special platforms;
All platforms are open and closed. The first is available to everyone, the second – only to those who have paid for the subscription. Each service has its approach to analyzing the situation in the crypto market. Some use technical analysis, others fundamental, and still others have insider data. In all three cases, probability plays a significant role because trading signals do not guarantee traders a 100% result.
The primary purpose of fundamental analysis is:
- to assess the value of a cryptocurrency;
- to determine whether its exchange rate corresponds to the realities of the market at a particular time.
Fundamental factors also include:
- the reputation of digital coin developers;
- their partnerships;
- long-term development plans;
- monetary policy features;
- cryptocurrency capitalization;
- trading and transaction volumes;
- price volatility;
- average commissions.
The technical analysis does not determine the reasons why the cryptocurrency rate has changed direction. The only important thing is that the price moves in a specific direction for a certain period and within a narrow price range.
Those who have access to insider information can make a good living. Specialists warn every user about the plans of prominent crypto market players. They do it to raise or lower the price of a particular cryptocurrency artificially. Trading signals come in push notifications, messages in messengers, social networks, or emails.
Some traders provide indications that bitcoin quotes on the cryptocurrency exchange are declining. They provide different figures, from 5 to 15 percent. Just do not specify that such jumps occur with each digital currency. To avoid dissonance, there are trading signals. They provide detailed information on exactly how the state of the crypt you have chosen changes. That way, you have no reason to worry about your investment.