Cryptocurrency signals offer various advantages and can help improve the outcome of any trading you perform. But before anything else, you need to know how to read or understand them, how to apply their settings accurately, and finally where they come from.
This guide will help you understand everything about cryptocurrency signals, including how to get started, which providers are worth your time and money, and the main tips for maximizing your gains.
The best crypto signal services for 2021
This section will review several providers, trying to determine who is the best crypto signal service.
1 – MyCryptoParadise: Best Crypto signals platform with extremely high success ratio
2 – eToro: Good broker for beginners
3 – Bitcoin Trader: Automated cryptocurrency signals
4 – Learn2Trade: Reputed crypto signal provider
In order to understand what crypto signals are, how they work, and their specifics, first let’s understand these terms.
What is a crypto signal?
Cryptocurrency signals refer to a set of instructions sent by a signal provider to an individual to tell them what cryptocurrency to buy, at what price to buy, what the selling targets are, and finally, at what price to set the stop loss. These signals are trading ideas based on multiple parameters that depend on the cryptocurrency signal provider.
Cryptocurrency signal providers offer insights to traders by offering a set of instructions that specify what cryptocurrency they should invest in, at what price to buy it, and how much profit they can expect. Crypto signals are used to purchase crypto-assets such as Bitcoin or Altcoins at specific prices at different times. Crypto signal providers provide these cryptocurrency trading signals based on the current market conditions that can affect their value.
A signal usually contains the following information:
- The cryptocurrency to be bought (or sold) – The signal will indicate which cryptocurrency to purchase., e.g. BTC, ETH, XRP
- The buying price – The price you should aim to pay for the cryptocurrency
- The target – The price you should sell the cryptocurrency at when it reaches a certain price making your profit.
Stop-loss – The point at which you give up a losing position to avoid bigger losses
How do bitcoin and crypto signals work?
Most cryptocurrency signals are either based on email or text messages, often Telegram, and are very easy to understand.
Telegram is an instant messaging application that has some unique features. It’s popular among cryptocurrency Signal traders, who use it for its security and decentralized nature.
While Telegram is the most popular method for receiving signals, some providers choose to send them via email. The major downside to this method is that you may miss out on a signal if you don’t frequently check your email- and e-mail notifications are not as timely as those from Telegram.
Moreover, cryptocurrency signal providers will often offer a variety of channels to receive signals.
How can crypto trading signals help you trade?
In this section, we will detail the benefits of cryptocurrency signals.
Can be highly profitable
A major advantage of subscribing to cryptocurrency trading signals providers is that if they are profitable as advertised, it can be a very lucrative endeavor. Even though not everyone becomes rich from using these signals, there are likely people that make enough profit to get by. What’s more, depending on the provider you work with, you could help build a greater portfolio.
You don’t have to monitor the markets
Using a cryptocurrency signal provider can help you save time. You no longer need to spend hours looking at charts or doing the research yourself, as long as your signals return greater than what you paid for them.
Subscribing to a crypto signal provider opens you up to the education of expert traders. While insightful, many providers offer information about market trends without insights from why these patterns might be present, so make sure you do your own research and continue learning as well.