What is crypto signal?

Crypto signals are a set of recommendations from professional groups that tell individual traders what cryptocurrency to buy, the price to buy at, the sell-targets, and the stop-loss price.

These signals are based on the provider’s own research and are believed to have a high probability of generating a return. In this guide, we’ll cover everything you need to know about crypto signals, including how to get started, which signal providers to use, the recommended exchange for following signals, and tips for maximizing your returns.

So, let’s dive into the ultimate beginner’s guide to crypto signals.

What are Crypto Signals?

Crypto signals are specific instructions that inform you which cryptocurrency to buy, the recommended buy-in price, sell targets for profit, and stop losses to mitigate potential losses.

For example, a signal may recommend buying BTC on Binance at a price between $16500-$16600 and setting sell targets at $17000 and $17100 with a stop loss at $16200. When the entry price is reached, profit targets are hit, or stop loss is triggered, you will receive instant notifications from your provider.

It’s important to note that crypto signals are specific to a particular exchange, so you will need to have an account with that exchange to follow the trade. Major exchanges that most signal providers offer signals for include Binance, BitMex, Bittrex, and Coinbase.

For beginners, it’s recommended to start with Binance and BitMex.

Receiving Crypto Signals

Now that you understand what crypto signals are, let’s delve into the different ways you can receive them and ensure you follow them effectively.

One common method is Telegram, an instant messaging app that allows for bot functionality. These bots can issue command messages in group environments, including crypto calls that allow users to automatically place trades without accessing a cryptocurrency exchange.

Alternatively, some providers may send signals through email, though this method can be less reliable as it requires frequent checking to avoid missing a signal. To ensure you don’t miss out on any trades, it’s important to choose a method that works best for you.

Crypto Signals Providers

Now that you understand what crypto signals are and the various ways you can receive them, let’s discuss who provides these signals, how the groups are set up, and the process of joining them.

Many crypto signal groups can be found on Telegram, and joining typically involves contacting the admin of the group and paying a fee. While this may seem inconvenient, it can be a worthwhile investment as the signals provided by professional traders often more than makeup for the fees. In terms of structure, these groups on Telegram often have a similar setup.

For example:

• The Free Group on Telegram is a community of non-paying individuals who are interested in the premium membership. It typically has the highest number of members and provides signal providers with the opportunity to showcase the potential returns that paying members could receive. If you’re looking for the best free crypto signals groups, here’s our recommendation.

• The Paid Group If you trust a signal provider and want to receive their premium signals, you may decide to join their paid group. In this group, the provider must prove the value of your paid membership by sending profitable signals. If they fail to do so, they risk losing members when it comes time to renew their premium membership. For recommendations on the best-paid crypto signals groups, check out our recommendations.

Premium telegram groups for cryptocurrency often focus on a specific exchange, so it’s important to have an account with that exchange in order to fully benefit from the signals provided.

It’s also worth noting that there can be slight price differences between exchanges, so the price of bitcoin on Binance may not be the same as the price on Coinbase. In terms of pricing, these signal providers usually require a monthly payment to access their premium channels.

Payment can be made with cryptocurrency or with a card, though the latter option is not as common. To pay with cryptocurrency, you will typically need to inform the group admin of your desired payment method and send the payment to a specified address, along with the transaction ID as proof of origin. Card payments are generally accepted through VISA and Mastercard.

What makes one signal provider better than the next?

Notify you of updates. It’s essential for a crypto trading signal provider to keep users updated on any signals they issue. Without updates on the performance of a trade, following a signal becomes a frustrating experience. Therefore, providers should make sure to release updates on previously issued signals, such as whether the buy-in price has been reached or a profit target has been achieved. This way, users can stay informed about important developments.

Provide the latest news stories. To help their members make informed decisions, good providers should actively comment on any news stories that may impact their issued signals. They may encourage their members to hold strong and stay in a position despite negative news or advise them to sell. In any case, providers have more knowledge and should provide guidance on how best to navigate uncertainty. In other words, they should offer their members the support they need to navigate the unpredictable world of trading.

Provide technical analysis. While some traders are content to blindly follow signal providers, others may prefer to join a group that provides technical analysis (TA) to better understand the reasoning behind a signal. TA involves using historical trends to predict future price movements and is a common tool used by signal providers to identify profitable trades. When evaluating the credibility of a signal provider, you can consider whether or not they provide clear and understandable TA analysis. If the analysis is well-thought-out and easy to understand, it suggests that the provider knows what they are doing. On the other hand, if the analysis is nonsensical or non-existent, it may raise doubts about the provider’s competence.

Automated Trading. Automated trading is becoming increasingly common in the cryptocurrency market, as many traders use bots to execute trades quickly and efficiently. These bots are often integrated into the channels of signal providers, allowing users to easily follow signals and place trades with just a few clicks.

One popular bot for this purpose is Cornix, which can be integrated into a Telegram channel and accessed with the press of a button. However, it is important to note that in order to use this feature, users must first grant the bot access to their account through API keys. While some signal providers do not offer automated trading, it is always a good idea to give users the option to decide for themselves whether or not to utilize this functionality.

Benefits of Crypto Signals

Now that you are well-versed in crypto signal providers, what are the benefits of subscribing to one?

Some advantages include:

• The potential for high profits. By choosing a reputable provider with a successful track record, you have the opportunity to make significant returns on your investments.
• The ability to save time on research. Rather than spending hours analyzing charts and market data, you can rely on a professional trader to do the work for you.
• A learning opportunity. By reading the technical analysis and reasoning behind each signal, you can improve your own skills in spotting profitable trades. As you become more proficient, you may not even need a signal provider anymore.

In summary, crypto signals are a growing area within the crypto ecosystem that offer several benefits such as increased profitability, time-saving, and potentially serving as a learning opportunity. If you are able to find a reliable signal provider that has been thoroughly vetted, the potential for success is high. It’s important to view crypto signals as a way to supplement your income rather than as a get-rich-quick scheme. Even an extra $500 or $1000 in monthly income with minimal effort can be considered a success.