Learn more: Cryptocurrency Trading Signals Services
We all look for that little edge that will give us the upper hand in the market. In the realm of stocks and the NYSE, the highest risk but the biggest reward lies in stocks that are worth $1 or less. It is where all the young traders start, and where all future successful traders earn their stripes. In the world of cryptocurrency, the rules are not that different. The heavy-hitters, Bitcoin and Bitcoin Cash, Ethereum and Ethereum Classic, Ripple, and Litecoin require an understanding of solid fundamentals and long-term trades. But the trading signals are easy to spot on the cheap currencies.
Raise the signs and see the light
Signs based on technical indicators are good to know when it is time to buy or sell a particular coin. This analysis draws attention to unusual or abnormal of transactions. That matters because it sets you up for understanding pumps and dumps, which is a common, but illegal practice made by people with enough influence to buy low and sell high during a short span of time.
Currently, US federal agencies consider pump and dump an illegal method to make a profit in the United States. However, because of the decentralised nature of Bitcoin and Altcoins, there is not active protection for people who were scammed. So instead of you becoming a victim, you can use crypto trading signals to catch the trend and profit.
The eye of the buzz
Crypto trading signal come useful when you see a buzz around a coin that is suddenly gaining unwarranted momentum. A candlestick chart will quickly reveal this trend.
The first detail you will notice is the price falling and rising without many variations, but while at the same time hinting at an upward trend. That can be noticed by the candlesticks bars showing a substantial increase when increasing, but the inner bar remains within the mother bar when decreasing.
The second trading signal you will see is the market overreacting to the apparent minimum increase. That is because the individual(s) trying to pull the pump and dump are seeking to get the currency overvalued, and also get as many players involved as possible. This is the best time to buy. That is the giant green light that you need to see. All you need to is buy the hype and get into the wave. All the chatter around the altcoin will get the momentum going, and that will fuel the coin.
Here is where you need to keep a close eye at the price graph as the buying trend increases. The candlesticks will start to level once the market is deemed to have reached saturation. Just like at the beginning the trading signal will showcase a slight flat line. This is the apex of the price curve. Now is the time to sell. The currency will not increase anymore because the dump is underway.
Only the strong survive
If you do not follow the trading signals, you will be condemned to hold onto a currency for too long and lose profits. Cryptocurrency trading requires understanding market signals and being clever. You should always remember that to success in trading you need to buy the hype and sell the facts.
Set up an account on a recommended exchange or broker website to start trading:
Link: Visit recommended website HERE