Crypto currency is a relatively new thing in present money market. The currency gained its relevance in a last few years. There are several crypto currencies available with bit coin being the most popular among them. So a new user who wants to get involved in such trading should have prerequisite knowledge about the market and loss/profit it can incur. To help these newbie several online sites have come up which provides information about the market. The person needs to register to that particular site and go through the graph and statistics generated from crypto signals before investing.
How it works?
A person who wishes to invest in crypto currency should first study the market and then purchase them. After purchasing the person have the option of reselling it within a short time after desired amount is reached or he/she can hold on to it for a longer time period. The latter one is more of an investment than trading. Now once purchased the concerned person must keep an eye on the value of that particular currency whether it is going down or up. There are several technical analyses that take place before generating crypto signals.
Factors that are considered for generating signals:
There are several factors that are considered before the website generates a signal. We will be studying few them for a better understand of how it works. The trends in the market that are considered are as follows:
- The primary trend: This is the major trend which may last more than 3 years.
- The secondary trend: These are the minor corrections that occur in the primary trend.
- Short swings or minor movement: These are the trends that occur due to news or word of mouth which may last within a range of 3hours to few months.
Now each market trends have 3 phases and they are as follows:
- Accumulation phase:
This is the phase when the investors buy a particular currency at a low price but has a prospect of rise in its worth.
- Public participation phase:
Now people comes to know about this currency and starts buying them resulting in increase of price.
- Distribution phase:
This is the phase when investors who accumulated start selling its currency at a higher price.
These are the factors that influence crypto signals and different telegram groups help its user to get the required information before investing money.