Cryptocurrency Trading Signals
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The popularity of cryptocurrency in recent time can be associated with its swift turn around of investment into profit in percentage beyond the norms in the financial investment community. Due to this, a lot of people, both fresh financial investors, and seasoned ones are shifting their attention towards cryptocurrency.
Unlike other fields in the financial investment industry, cryptocurrency trading is relatively new, hence few experts with robust knowledge on crypto-related investments. In cryptocurrency, the natural order of investment is to buy any of the top cryptocurrency and expect or hope it increases in price and value over time. This in itself is not a flawed approach to trading, since cryptocurrency is being considered in the same light as gold or crude oil, which are all known to be investment havens since time immemorial.
With many people getting curious about what cryptocurrencies entail, the industry is gaining more trading volume, thus reducing the unpredictable nature and hyper-volatility of the whole trading system. Due to limited knowledge of crypto trading, more information such as manuals, guides, and roadmaps on how the system works is highly needed. Based on these, we now have several cryptocurrency signal providers.
What are crypto signals?
Crypto signals take different forms and patterns, but basically, they can be defined as series of data and information summarized into a simple and straightforward call to action trigger, that forecasts the price direction on a particular cryptocurrency. The signal information makes it possible for newbies as well as experts, to make trading decisions based on certain pricing prediction made by a cryptocurrency expert. The trade signals are then in turn used to make money, if they turn out to be right, which is not always the case. As an investor, you, therefore, need to be extra cautious when it comes to your money management principles.
Like the name suggests, a cryptocurrency trading signal originates from the English word ‘signal’ which translates into an action, sound or any form of interaction that give information about a particular preconceived subject matter. Since the information given by the signal provider translates into the receiver taking a particular action upon receiving the message, then the word signal perfectly fits the description.
How do cryptocurrency signals work?
Almost anything can be used as an input for crypto signals. All sorts of analysis, technical, quantitative or qualitative approaches could be used as a trade signal input. The main aim is to enable the investor to have an automated mechanical way to make decisions on investments without the inhibition brought about by emotions. The trade signal helps to devise whether to sell or not, an asset or other.
The trade signal is not only limited to the buying and selling of securities but can also be used in modifying portfolios: knowing the right time to invest more in a particular sector and ditching the other, that is, priority can be given to a particular asset class over others while using a trade signal. The complexity of a trading signal is limitless, it can, therefore, accommodate many inputs, but the more the inputs, the more time it takes to process. Since market changes are inevitable and unpredictably fast, the lesser the amount of input in a trade signal, the faster the output.
If you are knowledgeable in the art of computer programming, you can create your trading signals then sell them in the data marketplace. There are many signal providers out there, who basically offer signal services where customers can build trading algorithms without any prior experience or knowledge of computer programming. The process requires choosing whatever inputs you wish to use from the available lists and waiting for signals.
Basically, you just need to understand that signals cannot be generated without inputs, whether through quantitative, qualitative or fundamental analysis. It is upon a trader to either create his or her own trading algorithm or choose from the inputs provided by the signal services providers in the data science marketplace.
On a different note, signal service providers keep an eye on other groups to synergize analysis frameworks. Since signals cannot always accurately predict the upcoming flow of the price of cryptocurrencies, you need to be careful of what signals to use and what inputs to use to avoid losing your money peradventure it turns out to be wrong.
Can you really make money with crypto signals?
To directly answer the question, yes you can make money with crypto signals. Firstly, if you are an experienced programmer, you could create your own trading algorithms or system that works and put it up for a fee on the data market for prospective and existing investors to buy. Also, as an investor, you can search for a reliable signal provider and use their visual builders where you select among available inputs to create your own trading algorithm or system to forecast and trade in the cryptocurrency market.
The result of the trading signal relative to the direction of flow of the price of the cryptocurrency in question determines whether you make money or lose money, if it turns out to be right, you definitely make money from using cryptocurrency signals. So, even though we advise to leave the use of trading signals to the seasoned professionals, just about anyone can use the cryptocurrency trading signals, only the effectiveness might differ.
As the saying goes, the experience is the best teacher. The amount of investment and time you put into it is directly proportional to the amount of profit you can make in the crypto market. The probability of correctness of the signal determines if and how much of profit traders would make.
Where can you find crypto signals
You ought to know that we are not recommending anyone to rely on any crypto signals for their trades as signals for crypto can be very profitable when handled correctly but also disastrous when handled wrongly as you could lose all your money; the probability of profits is dependent on the correctness of the trading signals of which nothing is 100% accurate, and many fake crypto signals are out there. Upon knowing that, the next question is where can you find crypto signals?
Recently, there’s been an increase in the number of the trading signal for cryptocurrency services which makes it hard to separate the wheat from the chaff. Here are pointers to getting trading signals and a few tested and trusted crypto trading signal services gathered from our research:
Telegram/ discord signals channels-
Chatting apps such as Telegram, WhatsApp, etc with group creation functions has become a perfect place to get trading signals. There has been a great increase in the number of signal providing groups, especially on Telegram in recent times.
Although this is perceived as a really good option for receiving trading signal simply because it is fast, and as you know speed is very important when it comes to signals; most of these groups are being managed by private individuals hence no way of knowing if its all scam. The fact that most of the groups are closed group, whereby only the admin can make posts means you can’t see previous comments made by group members who have been scammed by the provider.
Nevertheless, in some cases, there has been reporting of some legit crypto signals providers. Statistically, this would be about 1 in every 100 channels. Therefore, if you happened to subscribe to a channel that works well, then the whole process becomes worth it.
As a rule, it is very important that you are referred to a signal group or channel rather than searching for one based on keywords. Also, once you join, take your time to see how it works over time before you start committing your hard earned cash to it. One good example of a crypto signal Telegram channel is cryptocurrency republic, with over 22 thousand members. (We do not recommend any provider, use this signals at your own risks)
Another method through which signals are being provided is through the use of a website. In this case, the signal provider issues a signal to registered members who have paid for a subscription on their website or app. Here you have to be on the website to get the signal as it drops and you also get further instructions on what to do. With this type of signal providing avenues, you can easily find reviews online from past paying customer of the services. This way you will know if the website actually delivers or it is just another scam.
Another avenue through which signals are being provided is through the use of a social network such as Facebook groups, Twitter, Tumblr, etc. Social network makes it easy for signal providers to issue signals without having to own a website. Social network signals can be paid or free, but it is usually free in most cases.
The signals are being provided by private groups or individuals who have to spend enough time trading cryptocurrency to understand it. Just like with other types of signal mediums, the profitability of these signals is based on whether you join the right type of group or you are being deceived by fraudsters. Therefore, it is upon you to do your research extensively before you pay for a signal service or use a free one.
Doing your own research
This is by far the most advised method for anyone into financial trading in the long run. Although it should be noted that this method takes time to master, hence recommended for those who are just starting out in financial trading. Beginners are advised to start with signal providers, and then as time progress, they can switch to trading based on their own research.
Signal providers can easily fold up at any time, or worst case starts giving out bad signals after some time. This is normal and has happened severally. In order to avoid being disadvantaged by such situations, it is greatly advised that you get hands-on with your trading approach and learn what it takes actually to trade the market.
The knowledge from this alone will help you as time goes on, simply because it is part of you and even if your current trading strategy starts to fail, you know where and how to fix things and start making a profit again. Another good thing about learning to trade yourself is that whatever you have learned can be easily transferred to other parts of the financial market. So in the case that one form of trading financial instrument is not performing well, you can easily move on to another one easily or better still trade multiple assets across different instrument sections.
Trading based on signals has been around for quite a while now, and it is showing no sign of slowing down anytime soon. Although there is surely going to be some really bad signal providers who are beginners themselves, the seasoned provider with accurate signals makes the whole process worth it.
So if you are looking for the best crypto signals providers that you can trust, make sure you take your time to research and select the best ones based on reviews and make sure you do not start trading based on this signals upon finding one. Take your time to examine and see if the kind of signal provided matches your overall taste and accommodate your current level of trading. Doing this will help you to save money in the long run, and you will be happier than most.
Thanks for reading through the article, we do hope you have learned a lot and enjoyed the reading, feel welcomed to explore our website for other articles related to cryptocurrency trading.