What is Signal?
Let's find out Signal meaning, definition in crypto, what is Signal, and all other detailed facts.
A Signal is a guideline that helps a trader to decide whether to buy or sell an asset. Additionally, it can indicate which group of assets seems to be favorable and which doesn’t. A signal is not a fixed indicator, therefore, time is always of the essence when dealing with it. Once a trader receives a signal, they must take action immediately for the most profitable outcome.
It’s important to keep in mind that a signal is not a guarantee for success. Especially in the cryptocurrency market, which is high in volatility.
Usually, one can find signals without spending a single penny, however many traders prefer to put the process of handling signals into the hands of the more knowledgeable and accomplished investors or other groups. You can find many of them on social platforms like Telegram.
Generally speaking, these groups have certain criteria in order to be accepted. It could be a one-time payment, a subscription plan, or simply inviting 10 people to join the group within a set period of time.
Although, you should always proceed with caution when in contact with these groups since some of them take advantage of your inexperience. An infamous example of this type of behavior is a pump and dump (P&D) scheme. Groups that utilize P&D schemes can garner up to tens of thousands of members which, in turn, allows them to manipulate the prices. By the time you receive the signal and make a purchase, the asset will already be pumped by the members of the group resulting in an inflated price that is quick to be corrected.
Signals can be obtained by conducting a fundamental analysis among others like a technical or sentiment analysis. In addition to this, studying the current trading patterns and historical data which provides records of asset prices for up to 10 years can help locate the correct signals.
On top of that, individual researchers and research groups, traders, tradings funds, and many other sources can assist in uncovering a signal.