Crypto Signals are playbooks cryptocurrency trading ideas sent from a signal provider to a subscriber. They have become extremely popular as time savers and gem hunting spots for profiting in crypto markets.
Signals are essentially messages that inform a person about a trade idea based on the provider’s parameters for making a trade. It contains information such as the cryptocurrency pair the signal is for, trade execution details such as where to buy it and sell it, and at what price to close the position.
In this guide, we’ll walk you through everything you need to know about cryptocurrency signals. We’ll show you how to get started understanding crypto signals, signal providers to use, the exchange we recommend for following signals, and the best tips for maximizing your returns.
What is a Crypto Signal?
Crypto Signals are automatic trading recommendations that provide traders with information about which cryptocurrency to buy, the price to buy at, the sell targets, and stop-losses.
By subscribing to a signal service, traders can receive actionable price alerts in real-time and implement these signals accordingly. These signals are trade ideas that the provider has researched themselves.
While providers typically place a high probability of making a profit in their trades, people must do independent research, including checking the past performance of the signals provider.
In general, a crypto signal will include the following:
- The Cryptocurrency ticker — Each cryptocurrency has a unique abbreviation or a “ticker” to identify the transaction. The crypto signal provider may write tickers in various formats, such as BTC, BTC-PERP, BTC-USDT, (FTX: BTC), etcetera.
- The buy or short-sell price — The price at which a signal suggests buying into the specified cryptocurrency.
- Sell (take-profit) or short-covering targets — The price at which a signal suggests you sell the crypto or cover your short position to secure profits. It often bases execution on specific support and resistance levels.
- Stop-loss parameters — This is the functionality for automatically exiting a position at a strategic price level to mitigate losses or secure profits.
The example below contains all of the mentioned characteristics:
As seen in the image above, you have a signal that tells which cryptocurrency to buy.
It also lists the trade’s transaction type and trade’s exchange.
Finally, the signal lists how much free capital to allocate.
The example trade signal also provides two target entry prices, four take profit targets, and the stop-loss configuration.
As the trade plays out, the crypto signal provider will push updates like the one below, indicating whether any entry, take-profit, or stop-loss targets have hit a trigger.
Any decent crypto signals provider will send instant notifications to your associated device and application when any of the respective asset’s price targets hit.
Premium providers share ongoing in-depth analysis in one or many formats, such as video content, to complement their trading signals.
As you can see, crypto signals keep you informed about potential trades without requiring you to discover setups independently.
Discover New Crypto Projects — A Hidden Perk of Using Crypto Signals
Crypto signals are an effective way for traders to access a wide variety of new cryptocurrencies.
The signals provider saves you a lot of work by providing a playbook for trading the crypto market while simultaneously exposing you to otherwise unknown crypto projects.
Signal providers often also manage an online community, blog, Youtube channel, podcast, or newsletter. They will typically provide a technical and fundamental analysis of the projects for which they release trading signals.
Combined with your risk management plan and research, joining a crypto signals service can help you go further in your trading career.
How Do Crypto Signals Work?
Crypto signals are usually cryptocurrency exchange-specific, meaning if you want to follow the signal precisely, you must have an account with the coinciding exchange. Major exchanges that most signal providers prefer include FTX, Binance, BitMEX, Kraken, OKEx, and Bybit.
Most signals will apply no matter where you access the specified asset. Still, not all assets for which you’ll receive signals will be available on any number of exchanges.
For example, you may receive a trade signal for asset XYZ, applicable on the exchanges where XYZ is tradeable. You wouldn’t be able to make the trade on any exchanges where XYZ is untradeable.
Beginners may miss out on some setups for that reason, but they can stick with the safest exchanges containing a great number of options to choose from, and that will increase their accessibility to their provider’s signals.
Mitigating Risks When Using Crypto Signals
The most important thing you need to know about crypto signals is that they can be incredibly profitable. But it can also be extremely dangerous.
When trading complex financial instruments like cryptocurrencies, you need to have an effective plan of action, and so should your crypto signals provider.
A solid strategic plan should cover what can go wrong, take-profit targets, and how much risk a trader can handle in their portfolio. If your signals provider does not reflect a good strategic plan, you should look elsewhere.
Without a proper risk management formula backed by independent research, you ultimately blow up your account.
Crypto signals are not perfect!
Many people have concluded that crypto signals hold some level of authority for what the market will do next. But like weather reporters, we should base their projections against our own experience and prepare for the weather turning foul.
What’s most important is that you measure crypto signals and the signal provider, be it a human or a bot, against your own risk management rules.
Pay attention to any details provided by the crypto signal creator. Details to know include – stop-losses, take-profit targets and parameters, and leverage. Also, be aware of any specific crypto exchange listed in the signal details and whether the trade will utilize cross-leverage or exotic collateral (e.g., “cross-leverage”).
How to Receive Crypto Signals
Crypto signal providers will most likely run their service via “push notifications” on Telegram (and Discord, to a lesser extent). Telegram is an instant messaging app with unique bot functionality. It has become the dominant choice for crypto signal providers in recent years.
Telegram’s compatibility with custom bots makes it a uniquely effective application for seamless, instant communication with subscribers.
“Bots” in this context are programs designed to manage instant messaging services and data collection automatically.
On Telegram, these bots behave like individual user accounts, and users interact with the bots via command messages in groups hosting the bot or through direct messages.
Signal providers can program a bot to publish cryptocurrency signals and even allow subscribers to place trades automatically.
Many traders are busy and have managed their risk in a way that allows them to respond to a bot’s signals rapidly.
To use shortcuts like that, users must provide certain permissions on their exchange account, which allow for one-click trades directly through Telegram.
Another way of receiving crypto signals is email. Some people interested in signals groups may not have access to Telegram, so a provider may also publish signals via an email subscription list.
With the rising popularity of Substack and similar subscriber-based newsletter services, we’re likely to see more hybrid signals-newsletter groups over time.
The clear downfall of email-based crypto signals is that unless you’re checking your emails often, you may miss a signal. Because many signals base execution on low time frames, subscribers are likely to miss several calls. Compare that to instant notifications as soon as your provider publishes a signal, and there’s no competition.
Choosing The Best Crypto Signals Providers
Now that you have a better understanding of crypto signals and their structure, let’s walk through joining crypto signals groups.
Most crypto signals communities reside on Telegram, so download the Telegram app on your mobile device or computer if you haven’t already.
Joining a Telegram crypto signals group usually entails contacting an admin of the signal group, who then walks you through how to pay for a subscription and navigate the group’s various features.
You’ll find two kinds of crypto signals groups — Free and paid.
A free signals group will include paying and non-paying members. It is primarily the group’s sales funnel to increase free members’ interest in subscribing to the paid side of the group.
The signal provider often displays completed signal results and testimonials to non-paying members so that they have an idea of the group’s value before joining. Be sure to look around for a free trial to the premium group!
Free groups often have more members than paid groups. Still, the size of the group doesn’t always reflect the quality of the community or any free signals that admins and other members provide.
However, providers often reserve the good stuff for paid members. These are the users most committed to seeing the signals group develop and succeed.
Many people get stuck on the price tag of a signals group and assume that because the free group appears “dead,” the group has low value.
However, impatient people miss how much time and work creators put into the paid side of the group. A paid signals group is like an exclusive club, and a paywall is a price people pay for quality.
A paywall also acts to filter spam and toxic people, helping the community to develop value. Once you’re behind one for long enough, you may come to appreciate its existence.
Paid groups publish premium signals for paid members, typically entail a private discussion forum and other educational resources and investor insight.
Members often feel camaraderie or exclusivity in paid groups. That’s because they tend to receive much more attention from the signal providers and admins. Many people join a paid crypto community for the signals but stay for the people.
The bonus of a paid group is that the signals provider must demonstrate their value by sending signals that reliably generate returns. Paid group providers are in the business of having you subscribe next month.
After all, barring an incredible community, it’s unlikely for anyone to continue paying for a service that does not deliver results.
Premium groups sometimes have special partnerships that lock most of their signals to a specific cryptocurrency exchange. Always check which exchanges you’ll need to have an account with that exchange to accurately receive signals from your provider.
The pricing structure will vary with signal providers. Still, in general, it will require a monthly payment to access premium content.
Payment options generally come in two formats:
- Cryptocurrencies (ETH, BTC, USDC, and etcetera.)
- Card (Debit or Credit)
Cryptocurrencies are the most popular payment method for accessing premium crypto signals groups. Many people find crypto payments to be a more secure payment method than with cash or card.
Customers are beginning to pay with crypto more often because of the perceived anonymity, speediness, simplicity, and affordability when compared to traditional payments.
Signals providers often prefer crypto payments because no one can fake the transaction. Keep in mind that many crypto groups require proof of payment, like a transaction ID, before providing access.
Debit or credit card is a less popular option of payment for crypto signals providers. Consider all the reasons crypto payments ideal, find their opposite, and confidently apply those cons to paying with a card. Card payments are often reserved as a fallback option if the user cannot pay with crypto.
What do you need to look out for in a crypto signals provider? Providers vary, but the features they should have include
Notify you about signals (email or push notification)
Trading signals are great, but they’re even better when you know how well the trade is performing! Good signal providers make sure to give updates on their signals, so you never feel like you’re trading blindly.
Provide a newsfeed of the group’s activity and announcements
Good providers will also comment on any news stories that may affect active signals. By separating unbiased info from sensational news, signals providers can protect their audience from misinformation.
The best providers will tell you when to be wary of a news story, what’s part of the genuine trend, and what’s nothing more than clickbait.
Publish regular, timely technical and fundamental analysis
Technical analysis (TA) alludes to using historical trends of assets to predict future price movements.
Beyond increasing their credibility in knowing what they’re doing, by sharing TA, signal providers transform their group for signals into an educational insight hub.
Signal providers that share technical analysis playbooks and education provide their users with tools of the trade and tactics unique to that single community.
An ideal crypto signals group would also have one or more of the following:
- Automated Trading integration (i.e., Cornix)
- A robust and active online community (forum, Discord server, Telegram group)
- Multimedia content (video, podcasts, newsletter)
- Educational materials (articles, online courses)
How To Start Using Crypto Signals
Are you looking for the best crypto signals? AlphaTradeZone is your best option at the moment, period.
1) Once you’ve installed Telegram, be sure to reach out to our head analyst, @AlphaTeamSupport, and join the free crypto signals group on Discord.
You’ll also need to install Discord to access all of the premium content and signals.
After you’ve joined the Discord server, feel free to contact the admin via ⭐AlphaTradeZone®#4675, and they’ll walk you through how to get started.
2) You can pay for your AlphaTradeZone membership via any cryptocurrency of your choice. The web page will redirect you to speak with the admin on our Telegram group.
3) Once you’ve registered and confirmed your premium membership, the team will work alongside you to ensure you can follow their signals as easily as possible. If you have any issues, please direct-message an admin.
Still on the fence? Here’s a review of our services.
To Conclude About Crypto Signals
Signals groups for crypto are booming. And with those booming signals comes a whole lot of noise. But have no fear!
You’ve read this guide and can now cut through the crap and find out what’s valuable, so you don’t miss out on the blockchain revolution.