Now that the year 2020 is finally close to an end, it will without a doubt, leave the global economy in a very bad position. As per many economic analysts, the global economy will need some time in order to regain its lost might.
The pandemic has rendered companies and corporations from around the world in a very bad economic situation. However, the cryptocurrency industry is experiencing something entirely opposite to the global economy. At present, the cryptocurrency industry has a user-base of more than 100 million unique/active users.
When it comes to cryptocurrency trading, the process is as simple as stocks trading. In cryptocurrency trading however, you buy crypto-tokens instead of the actual assets of a company. Then the next part is simple as all you need to do is monitor the crypto-trading markets and observe its price and demand in the crypto-markets. If the price of the cryptocurrency grows higher than the purchase price, you can sell it or some part of it to make profit against the sale.
Although the cryptocurrency trading may seem very easy and simple in theory, it is definitely not the case when doing it practically. When you start trading in cryptocurrencies, you will realize that there are numerous crypto-trading markets followed by thousands of cryptocurrencies.
Why Does Crypto-Trading Need Trading Signals?
When you set foot into the cryptocurrency trading, you will realize that the crypto-markets are so vast that it is almost impossible to keep an eye on all of them at a single time. However, the cryptocurrency industry is the latest trading instrument in the online trading markets. This is the reason why even the cryptocurrency trading brokers are not as experienced and experts as the brokers running other instruments.
This is where the cryptocurrency trading signals come in. These signals act as indicators, suggestions, and recommendations for you, providing you with the latest information around the cryptocurrency of your choice.
The signals provide you with information around buying, selling, or trading a particular crypto-asset at a particular time. These can either be generated manually by a crypto-trading analyst/broker or with the help of crypto-bots or algorithms.
Manual Trading Signals
In manual cryptocurrency trading signals, there is a real-time analyst or team of analysts who monitor the cryptocurrency trading markets. Their main goal is to collect as much data as they can around the crypto-markets, currencies, prices, volatility, demand, events, historical reports, and based on this data, the create charts and graphs giving them a formal appearance.
With this information, the analysts are able to create forecasts for all the cryptocurrencies that they provide their services in.
When it comes to manual crypto-signals, all the information gathered by the crypto-analysts is organized keeping you convenience in mind. Then the information is shared with you manually via email, text, or even phone calls depending upon the broker’s/provider’s preferred mode of communication.
Then it is up to you whether you would like to take can action based on the information that has been provided to you or not.
Algo-Bot Trading Signals
As mentioned previously, as the crypto-industry is new as compared to other trading instruments, the manual trading signal approach also is not that much reliable. Another disadvantage of manual trading signals is that it requires your input in taking the actions suggested to you by the crypto-trading analysts through the signals.
This is where algorithmic as well as bot crypto-signals come in and offer an extra pair of hands. There are many top notch crypto-trading brokers like EZDSK, that have adopted algo and bot signaling system as analyzing the crypto-markets manually is not everyone’s cup of tea.
When it comes to algorithmic and bot signaling, these entities perform the same analysis and gather the same information but process it in a matter of seconds than hours or days. Once the forecast has been created, instead of sending you a signal, they perform the cryptocurrency trade on their own based on the actions that you have already fed through the crypto-trading platform. These particular features are called bot-trading and algo-trading.
When it comes to algorithms and bots, your only contribution is to pre-decide the buying volume/price and selling volume/price based on the data collected by the tools.