Cody, who lives in Florida, began his writing career focusing on the “bread and butter” subjects of stocks, EFTs, and bonds – topics he continues to cover to great aplomb here at TradersBest.com. However, in recent years, Cody has become particularly interested in crypto, so he now heads up our coverage of this fascinating world alongside his more conventional duties for the site.
Crypto trading signals refer to buying or selling indications given by trading experts to help traders manage their investments profitably. Ever since the market-leading cryptocurrency, Bitcoin, emerged back in 2009, an increasing number of people have shown interest in crypto signals.
Most people follow these signals in hope of making the most out of their crypto investment journeys with minimal efforts. However, there are thousands of crypto trading signals available online, out of which only a few are credible. Continue reading this guide to learn more about the best crypto trading signals and where you can find them.
The crypto market is known for being highly volatile, which makes it a high-risk market for investments. However, a massive number of investors have made a fortune as a result of this volatility. The million-dollar question is; how do these traders know when and where to invest?
No matter where you invest, proper research is essential to ensure your investment won’t go down the drain. This includes staying updated with crypto news, technically analysing relevant statistics, and implementing crypto trading strategies accordingly. Although, sometimes, carrying out research may seem like a hassle. This is where crypto trading signals come to the rescue.
For all those who lack the knowledge, expertise, or even the time to research where they should invest, crypto trading signals are the easy road to take. Signal providers primarily focus on technical & fundamental aspects of a cryptocurrency to present trading signals that offer good potential returns on investment. Sometimes, this is done through algorithms. For instance, AtoZ Markets is a Forex signal providing platform that uses a systematic algorithm-based process to develop and provide traders with high quality trading signals.
Get AtoZ Markets Premium Trading Signals
+30 Premium Trading Signals
Unlimited access to indicators
QA session with an AtoZ Mentor
Sign Up Now!
Understanding the importance of financial & technical analysis
Financial and technical analysis, when combined together, are the backbone of investment research. Technical analysis refers to the use of statistical and mathematical models to determine the direction of a market. The concept behind technical analysis is that when it comes to markets, history tends to repeat itself. Similarly, market & price trends are highly effective when it comes to determining a specific asset’s price direction.
Technical analysts consider several factors when studying any market movements and trends. These include economic and behavioural principles as well. On the other hand, fundamental analysis focuses on macroeconomic, microeconomic trends, the competitive landscape, and industry situations.
Luckily, more times than not, technical & fundamental analysis, when applied effectively, have proven to increase potential profits on investments. For instance, quality signal providers, such as AtoZ Markets, design algorithms that utilize fundamental & technical research to develop effective trading signals.
Pros of crypto trading signals
Keeping in mind the overwhelmingly volatile nature of the crypto market, having access to reliable crypto trading signals can be highly beneficial for traders. The top benefits of crypto signals are:
Receiving trading signals that are reliable, diminish the need for traders to constantly track the market & remain up to date with every fluctuation. In shorter words, trading signals simplify crypto trading by offering calculated trading suggestions.
Following trading signals can help you learn more about trading cryptocurrencies – for instance, the factors to consider before investing in crypto & what elements to focus on while managing your investments.
If provided by a reliable source, trading signals can help you build a profitable trading journey & recognizable portfolio. Though there is no certainty as to whether a trading signal is correct, there’s still a high chance if you get the trading signal from the right source. Just make sure that you choose a signal provider that has proof of high profitability or satisfied clients.
Cons of cryptocurrency trading signals
The major drawback of crypto trading signals is that thousands of crypto signal providers are now on the internet. The increasing number of crypto trading signals available makes it hard for traders to determine which ones are legit, and which are scams. Hence, accepting any trade signal comes with a high level of risk.
Most crypto quality signals that are from a reliable and reputable source come at a price. It’s not common for crypto experts to share their signals for free – they either sell it for a cost or ask you to get a subscription. Sometimes, paying the cost of these signals isn’t worth it. However, in some circumstances, it may be worth each penny. Nonetheless, it’s an added cost for an investor.
Guide to choosing the best crypto trading signals provider
With the market being flooded with thousands of signal groups, you must find the right one for your trading journey. Here are a few factors that determine whether a trading signal group is worth joining or not.
Cost & affordability
While some trading signal groups are free to join, others charge traders a fair amount of money. Considering that traders enter investments in hopes of multiplying their funds, the ongoing cost of crypto trading signals may seem unnecessary. However, it depends on every investor’s individual budget and preference. Some may go for paid signal groups simply because they’re confident that the signals provider can help them make the most out of their trading journey.
However, a decent amount of signal providers don’t charge you a penny, yet offer decent signals with a fair amount of success stories. Hence, the wise thing to do is try out free signals on a demo trading account. This way, you can determine whether the signals are effective or not without risking any money.
Regularity: How often will you receive signals?
It’s always preferable to receive several trading signals throughout the day. However, some trading providers will send you no more than one trading signal every day. This isn’t enough for traders that want to adapt to a particular trading strategy. It also leaves little space for judgement. After all, you can never trust a trading signal 100% – and there should always be an option to choose between a few signals.
Online Reviews: Is the signal provider reputable?
The easiest and most effective way of determining whether you should join a signal providers group, is to check the online crypto signals reviews. If people seem satisfied with the signals, you can go for it. However, watch out for signal providers with negative reviews. The online reputation of a signal provider speaks volumes for their reliability.
Risk-level: Are the signals too risky?
Every trading signal provider applies a unique strategy while sending out signals. Some trading signals may be high-risk, whereas others may be moderately risky. Make sure that whichever signal provider group you join has a strategy that suits your mindset. The last thing you want is to receive trading signals that make you anxious or don’t seem right to you. This is where research comes in, once again. Thoroughly analyse the trade signal providers past signals, reviews and patterns before signing up with them.
Is the provider well-aware of the market?
A prominent sign that indicates a signal provider is legit would be a crypto news section on their webpage. Anyone who regularly updates investors regarding ongoing market news, crypto prices and relevant details is likely expert enough to share valid trading signals through thorough market analysis. Some signal providers offer automated trading signals through expert designed algorithms or crypto trading bots.
Paid signal vs free signal: Which is the better option ?
While having free signals may seem like the budget friendly option, often paid signal providers offer more signals with additional information. For instance, a good paid signal provider is likely to offer you details such as stop-loss limits and profit targets – they’ll also ensure that they provide information supporting the signals they offer.
That being said, we believe having free crypto signals as well as paid signals is the best case scenario. This way you can test both types of signals, and benefit from additional services that come along with the paid signals. AtoZ Markets offers a free Forex trading signal per day to all their users. However if you subscribe, you can receive up to 15 forex signals a day and these signals have the potential to add immense value to your investment journey. In fact, their additional services include an AutoTrader as well. That being said, you can download their application free of cost and begin your investment journey with the help of credible signals & top-notch services.
Get AtoZ Markets Premium Trading Signals
1. Choose your AtoZ Markets Premium plan
2. Learn how to use the signals from our guide
3. Open a trading account with a reliable broker
4. Copy the daily trading signals
Sign Up Now!
How to reduce the risk of loss while following crypto trading signals
Once you’ve found a reliable crypto signals provider, your work still isn’t complete. While a signal provider may be reputable and reliable, no signal can be 100% accurate. The last thing you’d want to do is blindly trust the signals and risk your investments. Here are several things that can help you reduce the risk of loss while trading cryptocurrencies through crypto signals.
Use stop-loss orders
Using a stop loss while placing an order is a must unless you’re 100% confident in your trade – which is rarely possible. Reduce the risk associated with your investment by ensuring you don’t lose more than a certain amount of your funds. Some expert investors suggest that you should lose a maximum of 3% of your funds in any given trade. After that, be ready to use a stop-loss order.
Make a profit target
Just as you use stop-loss to ensure you don’t lose more than a certain amount of your funds, the safest way to trade is to make a profit target as well. This way, you won’t have to risk your profits after achieving your goal – in hopes of further multiplying your funds. An ideal profit % to target, in the beginning, would be 3% of the total investment. Once that is achieved, you can look towards new investment opportunities.
Don’t blindly follow a crypto signal provider, especially when your funds are on the line. Any quality crypto signals provider will give its users details behind each of their signals – make sure you double-check those details. If you’re not confident about double-checking due to lack of knowledge, take advice from a crypto trader you trust. Alternatively, you can take online courses to better understand how these signals work and what factors are considered while sending them out. After all, knowledge is the key to growth, even when you’re investing.
Telegram: The crypto signal haven
If you’re an investor who takes even a bit of interest in ongoing news & happenings in the crypto market, you’ve probably heard of telegram by now. Telegram is a free instant messaging software where you can find thousands of crypto signal groups. It’s a cross-platform with several features, including end-to-end encrypted video calling, VoIP and file sharing.
Though you’re probably wondering why crypto signal providers prefer using Telegram rather than any other messaging software? Simply because Telegram is known for its efforts towards prioritizing user privacy. Considering the sensitivity of crypto trading signals and their impact, providers want to ensure that nobody can hack into their group or steal any information unauthorised.
Another benefit of crypto signals Telegram is that the application allows crypto signal providers to use more messaging bots. This is especially beneficial for those who want to create & share broadcasts regularly.
Final thoughts on finding the best crypto trading signals
Whether you’re a beginner in the crypto market or have been trading for a while now, crypto signals can be an efficient way of managing investments. Although, it’s not always as simple as it seems. Out of the thousands of crypto signal providers that are offering services for free or at a cost, there are only a few that you can rely on.
It’s essential that you carry out research before signing up with a signal provider. For instance, you should know the reputation, costs, signal regularity and risk level of the signal provider to begin with. An effective way to judge whether a trading signal provider is right for you is by applying their signals on demo trading accounts. This way you can judge the signal’s credibility without risking your funds.
If you’re interested in some of the top crypto signals Telegram, you can look up Universal Crypto Signals or Fat Pig Signals. Also, if you’re interested in trading Forex Pairs with quality Forex signals, you can look up AtoZ Markets.
Best Crypto Trading Signals – FAQ
😏 How do trading experts discover trading signals?
Any Investment demands market research to help determine how the investment should be managed. However, not every investor has the time or expertise to figure out whether or not an investment is a good idea. This is where crypto trading signals come to the rescue as they are trading ideas provided by trading experts. However, the effectiveness of these signals is highly dependent on the expertise of the provider. Not every signal provider is good at what they do, so you have to look out for scams or unsuccessful signals.
🧨 How to avoid crypto trading signals that are scams?
Ever since the crypto market has become increasingly popular for investments, thousands of crypto investors started offering crypto trading signals. However, the increasing number of crypto signal groups has made it difficult for investors to judge whether a signal provider is legit or not. You simply cannot trust a signal unless it is from a reputable source in the first place. Other than that, there are a number of things that can help you determine the legitimacy of a trading signal provider.
🔥 Are crypto trading signals ideal for beginners?
While trading signals are designed to make life easier for investors, the outcome of a trading signal depends on several factors. For instance, is the signal provider reliable? Are you using stop-orders? Do you have a profit target in mind? Do you have the knowledge to determine whether the signal is likely to succeed? These are just a few of the questions an investor needs to think about before signing up with a signal provider.
✅ How to sign up for crypto trading signals on telegram?
A Telegram is a messaging software where thousands of trading signal groups are present. While some are recognised for excellent signals, others have a bad reputation. The most important part of joining a trading signal group is ensuring that you’re well aware of the group’s reputation & costs. You can also join a trading signals group and try out the signals on a free trading demo account to ensure they work well for you.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.