This one is pretty explanatory. After all, it goes without saying that you will need to know which pair our signal relates to. We should note that my team of crypto analyst specialize in a wide range of cryptocurrency markets. Not only does this include crypto-to-fiat, but crypto-to-crypto pairs, too. For those unaware, a crypto-to-fiat pair will contain one digital currency like Bitcoin and one fiat currency like the US dollar. In this example, the pair would be represented as BTC/USD.
An additional key metric that is mandatory in the crypto signals space is the direction of the market. In other words, should you go long or short on the trade? Without this information, the crypto signal would be worthless.
Make no mistake about it – the best crypto signals will always come with the required limit order price. If you are new to trading, you generally have two options when it comes to entering the market. By default, most online brokers ask you if you want to place a ‘market order’. This simply means that the broker will execute your trade instantly – at the next available price.
So far, we have established that the best crypto signals will tell you what pair to trade, whether you should go long or short, and what entry price you should set your limit order at. However, this is only half the battle. After all, in order to trade in a risk-averse manner, you should have an entry strategy in place.
There is one more important piece of information that the best crypto signals will provide you – and that’s a suggested take-profit order price. This works the same as a stop-loss order, but instead of mitigating our risks, it will seek to lock in our profits from the trade. In the example we gave earlier, we noted that the suggested take-profit order price is $238.74. This sits at 3% above the suggested limit order price of $231.79 – meaning that we seek to make gains of 3% on this particular crypto signal. Once again, should the take-profit price get matched by the market – the crypto broker in question will automatically close the trade. As such, we can lock in our profits without needing to sit at our device to manually exit the position.
Leading on from the above section on stop-loss and take-profit orders, my team of crypto analysts will always have a risk/reward ratio in mind when sending out crypto signals. Leading on from the above section on stop-loss and take-profit orders, my team of analysts will always have a risk/reward ratio in mind when sending out crypto signals. In the example above, the risk was 1% – as that is what our suggested stop-loss price amounted to. The reward part of the equation was 3% – as that’s where we positioned our take-profit order. Crucially, most of the crypto signals that we send out will follow a 1/3 risk/reward ratio. In simple terms, this means that we are risking 1% of our capital to make gains of 3%. In doing so, we only need to have one successful trade out of every three to make a profit.