Beginner's Guide to Managing Crypto Investments with Alerts

Cryptocurrencies are one of the newest asset classes in financial markets. The first cryptocurrency, Bitcoin, was only launched in 2008. Compared to some other asset classes, this is a very new market that has a lot of risks. As the market is still establishing itself, it can be hard to predict its movement in the future. Moreover, this is one of the most volatile markets with any news and events shifting pricing heavily.

With alerts, clients can stay up to date with news and price movements. In this article, we are going to look at a beginner’s guide to managing crypto investments with alerts.

How To Invest in Crypto

There are many ways to invest in cryptocurrencies, offering you access to a large market. These include:

Holding Cryptocurrencies

This is one of the most common approaches to cryptocurrency investing. An investor has the option to directly buy and store one or more cryptocurrencies. The most well-known cryptocurrencies, such as Bitcoin and Ethereum, are among traders’ top choices, as well as relatively unheard-of coins that have just been launched in an initial coin offering (ICO). 

Trading cryptocurrencies

Trading cryptocurrencies is purchasing and selling crypto assets on an exchange in an attempt to profit from price swings. This approach needs a thorough knowledge of the crypto market and a risk-taking attitude. The market is very volatile and investors can lose a lot of funds in this type of investment. 

Mining

Cryptocurrency mining and participating in crypto networks as a validator are two other ways to invest. Cryptocurrency mining is utilizing specialized hardware to verify transactions and add new blocks to the blockchain. The incentives that cryptocurrency miners and validators receive might be held as investments or converted into other currencies. However, the equipment and electricity needed for this procedure are expensive, and the process also requires technical know-how.

Crypto funds

Crypto funds are portfolios of cryptocurrencies that are expertly managed. Investors can select to invest in a cryptocurrency-focused fund if they don't want to use other types of investing. This type of investing allows investors who lack the knowledge or resources to manage their own portfolios to also invest in the market.

What are Alerts?

Crypto alerts are a particular kind of trading alert that informs investors of price movement, technical issues, or economic developments that could have an impact on a cryptocurrency’s worth. Essentially, crypto alerts let investors know when specific things happen. This enables investors to respond to the incident in a timely manner. The time-consuming task of fact-checking research can be contracted out, which gives the investors more freedom to operate.

Price alerts are the most fundamental alert kind that the majority of readers are already familiar with. With a standard price alert, investors can be notified whenever the price of a certain cryptocurrency drops or rises relative to a predetermined target. Price threshold is another type of price alert. This alerts traders when the price moves heavily over a certain period of time. Additionally, investors can utilize a price tracker to receive periodic alerts on a coin’s price.

Technical alerts let you know when certain conditions are met by technical indicators, such as the stochastic oscillator or the relative strength index (RSI). While Economic outcome alerts let you know about forthcoming events like central bank meetings and interest rate releases that could influence the cryptocurrency markets.

How To Get Alerts

There are several mediums people can use to receive alerts on their phones or computers. Investors can get alerts via Telegram, Discord, Slack, Email, SMS, Phone Call, Push, Browser Notifications, and Webhook Events. The platform an investor receives alerts on depends on the alert provider and the device of the user.  Fortunately, there are alert providers that support multiple ways to receive alerts. 

Final Thoughts

Before trading on crypto alerts, you should be aware that they shouldn't always be used as confirmation of a market move. It is usually preferable to use an alert as the foundation of a trade and then conduct your own analysis to see whether there is a possibility to benefit. It's critical to carry out your own technical and fundamental research before taking a position based on a crypto trading alert. This is because there is no assurance that it will result in a market movement.