There are many aspects to trading. There is technical analysis, fundamental analysis, psychology, leverage and many other. Using a variety of analytical tools, investors can come up with a trading signal, which is a point at which action should be taken. Whether you buy or sell on that signal, depends on the analysis. Sometimes it depends on complex algorithms. Other times, the trading signal is the product of pure herd mentality, hence the rise of social trading. Regardless of how the signal is produced and what you do when you see it, it is important to get acquainted with the way these trading signals are produced and how to take advantage of it on your preferred trading platform, especially if you are looking at cryptocurrency trading.
Trading Signal Sites
There are websites that specialize in producing trading signals. Nevertheless, these sites are always suspect. Logically speaking, if you have a trading signal that will give you an edge, why share it with everyone? The process by which they produce these trading signals should also be questioned. Many of these sites don’t show you their algorithms or their technical analysis. When it comes to cryptocurrency trading signals, it is easier to make anything up and make it look serious. Therefore, trading on their signals becomes tricky at best.
Trading Platforms Offering Trading Signal Services
You might be better off trying a trading platform that offers trading signals. These platforms clearly have a different interest and their profit structure encourages them to be more honest with their clients – if they are a legitimate trading platform that can be trusted. Here is why:
- Trading platforms are in the business of facilitating the trade, not in the business of making a trade
- These platforms make money on trading fees, which means they don’t care on which side of the trade you are on
- They want to make sure you keep on trading, so they are more likely to give you reliable information
- Experts work for these platforms, giving you access to great insights and sophisticated analysis
Crypto Trading Signals
When it comes to cryptocurrency trading, the analysis that produces a signal is even more complex. The variety of factors and the technical know-how required, make crypto trading signals hard to get right. Regardless of how well you do your fundamental and technical analysis, when it comes to cryptocurrency trading following what other people are doing is crucial. Therefore, you should always do your own research. Nevertheless, if you are already trading on a platform you feel confident in, you should include their signals in your research.
Best Cryptocurrency Trading Signals
Only a few platforms offer you the right tools to get your cryptocurrency trading signals right. The most prominent of them all is probably eToro. Unlike FX-Advisor and Signal Profits – both trading signal sites – eToro is a fully-fledged trading platform that has clear incentives. There are other trading platforms that also offer trading signals, like MetaTrader, if you don’t like eToro. Nevertheless, it seems that eToro has a leg up on the rest in part because of the quality of their cryptocurrency trading signals.
Social trading on eToro
Apart from trading signals, eToro has a social trading tool. Copy trading allows traders to copy investments opened and managed by other investors. This is usually within the context of a social trading platform – which is exactly what eToro is. You’ll be able to find other traders on eToro easily. The Editor’s Choice section shows you Popular Investors that are worth looking into.
But even when the trading platform is so reputable and so good at producing wonderful signals, you should never follow them or other traders blindly. Cryptocurrency is all about self-reliance. When it comes to the information you trade on the same principle applies. Make sure you DYOR – do your own research – and avoid making trades you are not certain about.