Cryptocurrencies are also known to the world of investors as coins, or digital currency, sometimes cyber currency. Starting from when Bitcoin came into public almost a decade ago, more and more of its families, or sometimes regarded as alternatives, or forks had immensely emerged into the crypto market. However, disregarding any new coins, the value of Bitcoin is still growing, and is currently holding the largest market cap.
The coin market experienced a sharp downfall during the year 2018. The whole market capitalization shrank from $800 plus billion to $186 billion. Although during the last two years, there was a slight rebound, however, as of to-date, the market capitalization is recorded as just a little bit over $320 billion, not even half of its peak.
Spectators said the sharp fall was due to an announcement made by the co-founder of Ethereum, the second largest coin by market cap just before the turn. It was said that there was a foreseeable ceiling to the top of crypto prices, which raised negative sentiments towards the coin itself, causing it to fall tremendously. Since it was, and still is the second largest coin, the fall hindered the market as a whole. From then, Bitcoin, although it was already the largest coin, is now double Ethereum's market cap.
The 10 largest coins out there in the markets for trading are listed below, together with a little insight of their market share respectively:
1. Bitcoin — 59%
2. Ethereum — 11%
3. Tether — 4.7%
4. XRP — 3%
5. Bitcoin Cash — 1.2%
6. Polkadot — 1.1%
7. Binance Coin — 1%
8. Crypto.com Coin — 0.93%
9. Chainlink — 0.9%
10. Litecoin — 0.88%
Now, you can see how Bitcoin dominates the cryptocurrency market.
Unlike most of the other stocks or investing instruments, crypto prices are extremely volatile. It can go up and down like a rollercoaster, and that is what makes it so fascinating for new players—it's the expectation of a quick high that is so luring. Like any other investments, you have to get well prepared before you go into the markets and start making your bets.
1. Your First Step into Buying Crypto
Find an exchange, a portal which connects you to the world of cryptos. Do some detailed research on which exchange you are going to sign onto. Check on the following aspects:
2. Sign Up
Once you have chosen the right exchange, sign up.
3. Deposit Funds
Transact your cryptos into your exchange account for future transactions.
4. Getting Started on the Actual Trading
Fundamental Analysis: Getting access to the cryptocurrency intrinsic value. Research on the economic, financial, qualitative, and quantitative factors that can affect the crypto you are trading on.
Technical Analysis: A study of past market data, its price and volume, making predictions based on past results.
Once you are prepared and start to trade, you have to also get to know the rules for trading. The basic groundwork of cryptos points to the future of money as well as its digital value. Their prices however would not grow eternally; as was said earlier in the article, the prices are like a rollercoaster, can go up and down, and can happen all in a second. So, making the right decision, targeting the optimal entry and exit price would be very helpful like any other investments. And how do you do that? You look for signals.
Crypto signals are instructions given on how and when to trade cryptocurrencies based on relevant information. They are trading ideas or suggestions on when to trade specified cryptos at a certain price and time. This information would include the type of coins to trade, the buying and selling price suggestions, the optimal stop loss level to minimize your losses in case there will be one.
They are generated manually and mechanically. Manual signals are provided by long-term investors and crypto experts. They are people with extensive market insights, and can make predictions based on past statistics and analyzing prices and trends. Mechanical signals are generated by computers by using coded algorithms.
Yes, they are. Especially for new investors. They can minimize the price newbies pay for learning how to trade.
Crypto signals are user-friendly, and can result in better trading results in less time, reducing learning costs, as was just mentioned.
【Automated Crypto Signals】Generated by computer software programs.
【Paid Crypto Signals】Provided by signal service providers; users can make periodic subscriptions.
【Entry and Exit Crypto Signals】Suggestions for trading actions.
【Buy or Sell】Suggestions to buy or sell at a prevailing market price is a CMP (Current Market Price) instruction. Whereas, an instruction given to buy or sell at a predetermined price is a pending order.
【Stop Loss and Take Profit】There will be set levels at which your trading will be automatically stopped to prevent massive loss.
【Manually】Most experienced traders would prefer manual execution. When signals are received, traders will follow the instructions and perform the actions manually.
【Automated】The signal provider's software is linked to your trading platform account. Once a signal has been released, the software will automatically perform the action.
⚠️ Important: Before choosing the exchange or a crypto signal provider, do some research!