How to use Crypto Signals When Trading With Poloniex?

Poloniex Exchange is a digital assets trading and exchange platform. The exchange is a subsidiary of M/S Polo Digital Assets Limited, a parent company. The parent company has its headquarters in the Republic of Seychelles, where it was established and registered. Hence, the headquarters of the Poloniex Exchange subsidiary is also located on the African Island.  

The exchange legally operates in a lot of countries except for a few such as the United States, Sudan, Cuba, North Korea and Syria. Poloniex processes nearly 5,000 Bitcoins worth of transactions per day. 

Initially, Poloniex had its headquarters in Delaware, U.S. The exchange was also established by Tristan D’Agosta in 2014. However, the exchange faced a cyber attack in 2014 just days after its launch, which resulted in a loss of $50,000.

The exchange took it upon itself to bear the loss and returned an equal amount of the lost BTC. It would later rise from the setback in 2016 and increase its daily trading volume. In fact, Poloniex was the first crypto exchange to list Ethereum (ETH). 

Pros and Cons of Trading on Poloniex

In this section, we are going to look at some of the pros and cons of trading on the Poloniex cryptocurrency exchange platform. 

Pros

Cons

What are Poloniex Crypto Trading Signals?

Poloniex crypto trading signals are a set of buy/sell instructions for a crypto asset listed on the Poloniex Exchange, which helps you to form the basis of taking profit as well as the point of placing a stop loss. 

The trading signals could be manually generated by an individual or a team through scouring and analysing digital asset markets. 

Sometimes, a piece of software fed with market analytics can generate such trading signals by monitoring the markets. 

Forex trading signals have existed for decades. On the other hand, crypto signals have only existed for a few years and are a comparatively new niche. You will notice there are lots of crypto trading signal providers due to the low barriers to entry associated with crypto. The crypto market is awash with lots of trading opportunities and therefore utilizing signals is a good way to remain on top. 

A crypto signal takes the following basic format. The provider announces to subscribers to open a position at let’s say $10,000 and sets a profit target at $15,000 and a stop loss at $9,000. Sometimes, the signal provider could also ask subscribers if they can add or take off risk. 

Trading crypto signals on Poloniex Exchange

Prerequisites include: 

Find Futures on the Poloniex homepage. If you intend not to use leverage, go ahead and click the Trade button on the homepage. 

Both the Futures and the Trade Buttons are marked in red boxes on the screenshot above.

Remember to transfer the needed amount of funds into your Futures wallet. Then go ahead and choose our preferred signal pair to begin trading.

Also, remember you are trading depending on the signals you got from your provider. The parameters you will fill in include leverage, the value of your trade if $25 or $50, whether you are opening a short or long position, the stop loss and the take profit. 

Once you are done filling in the trade according to the signal parameters, the next step is waiting for the order to be filled. Simple as it sounds. If you came all this way, you are comfortable using crypto signals when trading with Poloniex. There are other advanced aspects such as taking a profit without having to close the position. However, we are going to cover such topics in subsequent articles. Take note that the above steps are the only crucial information you need to get started on Poloniex with crypto signals. 

Transparency – are the signals transparent. Is the team behind the signals honest and clear about their wins and losses? Avoid picking a dubious signal provider claiming they have a perfect win rate, yet lack the proof to back up their claim. A quality and genuine provider will be honest about their losses as well. 

Frequently Asked Questions on Poloniex crypto signals

Slippage – Slippage is the extent of a price change between the time you started your trade to the time you successfully concluded the transaction. In arbitrage, it means the price could change to your disadvantage after you have just bought the coin. Slippage could be a small amount of money but it really counts in the cryptocurrency market. Crypto trading requires you to trade within tight margins and you, therefore, require to put much thought into all these costs, including the costs of a reliable crypto signals provider.