Table of Contents:
- 1. Introduction
- 2. Tutorial on cryptocurrency exchange
- 3. How to read signals provided in the groups?
- 4. How to check the exchanges on which the signalized cryptocurrency is located?
- 5. How to set selling targets on the exchange?
- 5. Should we use stop losses? What to do if there is no stop loss in a signal?
- 6. Summary
Hi there! If you found this article, then you are certainly a beginning trader or a man who is currently wondering whether cryptocurrency itself is the right thing for you. Let me calm you down – everyone was on the very same place as you now. Some delved more into the world of digital currencies, others were not interested with that topic at all.
Tutorial on cryptocurrency exchange
You probably ask yourself a basic question – what can be the best thing to invest your funds into? There are plenty of possibilities. You can, for example, buy BTC for all the cash. You can also diversify and split the capital among bitcoin and several/several dozen of altcoins. What’s next? Should we hold? Should we be active? It’s hard to tell. Everyone should decide which tactic is the best and after that, we should stick to it.
Our team consists of people who definitely have different views on that topic. We’ve got here people, who purchased hardware wallet, exchanged FIAT currencies on BTC, deposited their funds on a wallet and are about to leave it there for next several years. Of course we can also find here those, who love active trading. These people browse daily charts and follow news that can indicate increases or decreases in values. In that variant it is possible to depend on your own knowledge and experience. Of course you can also use the services of specialized signal groups. We decided to analyse some of them. Now you can find our precise comments in the search engine with signal groups on telegram.
And this is the place, where we would like to show you how to use payable signals in order to generate as big profits as it is possible without stumbling upon difficulties. Undoubtedly, applying to purchase/sell instructions gave by legitimate signallers is profitable. I will try to present the entire tutorial in the easiest way it is possible. Thanks to that, it will be very easy to understand even for the biggest cryptocurrency newbie.
How to read signals provided in the groups?
In fact, each group has got their own signalling system. All alerts may look a bit different. However, in most cases they are practically the same. In order to depict it better, I will be investigating two leading channels in our crypto signals services ranking. Down below you can find the screens of CryptoAlarm and 2moon:
Crypto Alarm – purchasing signal
In case of CryptoAlarm, command BUY appears on the first line. It means that the team offers us a signal to purchase. Next to the command, we’ve got the name of the coin, whereas in the brackets its abbreviation that is most often used. After reading the first line, we can see what cryptocurrency is suggested to purchase. Based on our example, the cryptocurrency worth purchasing was Chainlink (LINK).
The second line is simply the meaning of current price of the selected cryptocurrency. It is provided in relation to both BTC and to dollar. The last section in signalling schema is the target – these are the prices after which it will be profitable to sell coins. Based on the example provided above, we should set our sales in that way:
- 16.66% of the investment at the price of 0.0003600 BTC
- 16.66% of the investment at the price of 0.0003700 BTC
- 16.66% of the investment at the price of 0.0003900 BTC
- 16.66% of the investment at the price of 0.0004300 BTC
- 16.66% of the investment at the price of 0.0004800 BTC
- 16.66% of the investment at the price of 0.0005300 BTC
All the orders can be automatically set on every exchange. It means that you don’t have to worry about chart tracking. You just set sales and wait.
From time to time signals from CryptoAlarm can have special mark, which is Stop Loss. These are prices at which we should sell purchased item during its decreases, ensuring that you do not lose your funds.
2moon – purchasing signal
Purchasing alert from 2moon does not differ much from the previously described Alarm. The first line is once again the name of the coin and its abbreviation. Later on, we can find the representation of the current value (2moon gives us only its value in relation to BTC). The third, and at the same time the last position, one can find regards selling targets. Usually there are three targets. That is why we set each sale on 33.33% of the value we purchased. In the signal we offered, we purchase Chainlink (LINK) with its current value of 0.00012102 BTC and we sell it equally in the moments its value reaches the following prices: 0.00013500 BTC | 0.00014500 BTC | 0.00015500 BTC.
How to check the exchanges on which the signalized cryptocurrency is located?
In order to find out on which cryptocurrency exchanges we can find LINK, we should enter the page coinmarketcap.com. There, in the search box, we enter its name. After redirecting ourselves on a dedicated sub page, we click “markets” button. There, we can notice all the markets that offer trading with this particular coin.
How to set selling targets on the exchange?
In order to present the process of signal targeting on exchanges in the most accurate way, we will be using one of the most popular platforms, Binance that is. This is the place, from where we can purchase the currency provided in examples above. This is also where we are able to set our pricing goals.
Let us refer to the previously quoted signal from CryptoAlarm. As it was mentioned earlier on, we set 6 levels on which our funds will be sold. In order to sell, we obviously have to purchase the cryptocurrency. Let’s now begin the purchasing process. In our case, it will be 100 LINK. From the moment of providing signal to us, its value slightly dropped and currently estimates at 0.00033254 BTC. At this price we will open the purchase. Down below we provide you with the screenshot presenting the entire process.
After completing the order correctly, our account balance will be 100 LINK. It looks like the screens below present.
Now, the first step is already behind us. Let us handle the thing that will interest us the most, which is appropriate set of targets. In order to do that, we have to go to SELL LINK box. We will see three spaces out there. These are “Price”, “Amount”, and “Total”. In order to set target no 1 properly, namely selling 1/6 of our LINKs at the level of 0.0003600 BTC, we should enter:
- 0.0003600 BTC in “Price” box (the price of the target. It will automatically perform selling while reacing that threshold);
- 16.6 LINK in “Amount” box (the number of LINKs that will be sold on a given level. We’ve got 6 targets and the total amount of 100 LINK – splitting them equally, we will have 16.66 LINK for each target).
- In “Total” we do not enter anything. This box should fill in automatically, and its value will indicate the number of BTC we will receive after selling given target.
The activity presented above needs to be carried out 6 times while setting the right prices for targets on the levels of provided cryptocurrency predictions. The list of our open orders should look like this:
If you do not use Binance, then do not worry. Almost every cryptocurrency exchange looks the same and it is as intuitive as in case of Binance. If you possess the knowledge above, you shouldn’t have any problems with preparing the right selling targets on any of the exchange platform.
Should we use stop losses? What to do if there is no stop loss in a signal?
As you probably noticed, the cryptocurrency market is a place incredibly susceptible for all types of news and information. On the one hand, they can make all altcoins soar to the moon. The other time they can dump them in a few minutes and decrease the value by several, several dozen percent. That is why it is a good idea to secure our funds in some way. Now, I would like to explain how I do it and explain why, in my view, it is the most suitable solution for you.
I use an application called DELTA for the entire process (Delta for Android, Delta for iOS, and there is Delta for Windows). It is mainly a tool used for tracking your own blockfolio. However, it is quite useful for me because of different aspects. With the use of Delta, I can make alerts informing me about the decreases of the currency that I purchased earlier on by using a signal.
Let us use take a signal with LINK cryptocurrency from CryptoAlarm as example. In this case, we did not receive the level of stop loss in this signal. It doesn’t mean; however, that it is not a good idea to determine our own loss threshold. And although quite often all the signals are sold on targets, in this case this could be different. In any way, the one which secures his or her money will sleep better at night.
I always start from specifying how much money I am willing to lose on a signal. Let’s say that for a given signal with LINK, I am willing to incur a loss of 10%. Taking into account the purchasing price of 0.00033254 BTC, I calculate 10% of this value and subtract it from the purchasing price.
10% from 0.00033254 BTC is 0.000033254 BTC
0.00033254 BTC - 0.000033254 BTC = 0.000299286 BTC
I have just determined that in the moment LINK drops to the value of 0.000299286 BTC, I will sell it on my own stop loss. This is the maximum loss I can accept for this signal. Now I go to Delta and there, I set an alert that will inform me when LINK will approach the maximum loss threshold.
- 1. Open the tab with the chart icon on the bottom line of the application;
- 2. Search Chainlink currency;
- 3. Open “Alerts” tab;
- 4. Click on a bell icon over the text “Add your first ChainLink alert”
In the first box, I choose an crypto exchange where I keep this cryptocurrency.
In the second box I choose my LINK pair. Since I purchased Link with relation to BTC, then my pair is LINK/BTC. In the last line of the form I type in stop loss value, which is 0.000299286 BTC. Appropriately prepared alert on the base of our example should look as the following screen shows:
In this way we have got appropriately set alert. The moment we receive a notification about reaching the stop loss value, I simply enter Binance Exchange, then open the list of active orders, remove the active ones that regard LINK, and then I immediately sell them.
For me, trading with the use of this way makes me feel more secured. What is more, such alerts let me think twice whether I should sell selected cryptocurrency or whether I should increase the Stop Loss threshold, believing that the item will soar once again. Of course such situation does not happen very often. Still, I believe that it is a good idea to play actively on the exchange and get rid of elements that generate losses, and turn them into new signals.
I believe that the tutorial you just read explained and helped you in the right trading. The knowledge indulged in this article offer you basics when it comes to exchange trading. Thanks to these methods, you don’t have to delve into in-depth analysis, news, article reading, and getting to know advanced terminology. Almost everything happens automatically and the only thing you need to do is to cancel your targets settings in case of reaching stop loss price.