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What are Crypto Signals?

The Crypto Signals are basically a set or instructions that a signal provider sends to an individual. They tell them which cryptocurrency to buy and at what price. These signals represent trade ideas that have been researched by the provider and are therefore highly likely to make a profit.
This ultimate beginner’s guide to crypto signals will help you learn everything you need about them, including how to get started, which signal provider to use, which cryptocurrency exchange to recommend, and what top tips you can follow to maximize your returns. Without further delay, let’s dive into the ultimate beginner’s guide to crypto signal.
What are Crypto Signals?

As mentioned above, crypto signals are an informational set sent to you that informs you of the best cryptocurrency to purchase. These are the most common signals:

The cryptocurrency you want to buy – This signal will tell you which cryptocurrency you should purchase, e.g. BTC. ETH. XRP
The buy-in Price – This is the price you should attempt to buy cryptocurrency.
The sell-targets are the price at which you must sell cryptocurrency to make a profit.
Stop Losses – A mechanism that allows you to exit automatically from a position to reduce losses

A signal provider might give you a range rather than an absolute value for the entry target. A signal provider may offer a range from $8500 to $8600 per Bitcoin, rather than specifying a buy in price of $8500 per Bitcoin. This gives traders plenty to choose the best buy-in price since this could affect their profits.

If the crypto signal provider that you have subscribed to recommends a great trade, then you should hopefully make a nice profit.

Notifications from your provider will be sent to you immediately upon: the achievement of the entry price, the hit of any profit-targets and the activation or deactivation of the stop-loss. This is a great way to keep informed about trades, without needing to log on to the exchange.

As you probably already know, crypto signals can only be used with specific cryptocurrency exchanges. To trade off a signal you must have an account with the exchange. Binance and BitMex are some of the most popular signal providers.

Crypto Signals

There are several ways to receive signals, but Telegram is the most preferred. Telegram is an instant messaging application that looks and feels like WhatsApp. Telegram however has some unique features that make it stand out, including its bot functionality.

Telegram bots can also be programmed to automatically manage messages. These bots are typically used for group communication, where users can issue command messages to them. These bots are able to issue crypto calls which allows users to automatically place trades without the need to go to an exchange. You can trade all you want through Telegram, provided that the appropriate permissions are in place.

You can also receive crypto signals via email. People who want to generate returns by signing up to a signal group might not have Telegram. Therefore, some signal providers choose to send signals by email. However, if you aren’t checking your email frequently, you could miss a signal. This is different to being notified immediately when a signal comes in by your provider. This is not the most popular way to receive crypto signals. However, it can work for some people.
Crypto Signals Providers

Now that you know what crypto signals are, and which ways you can get them, let’s take a look at how these groups work and what it takes to join.

First of all, Telegram hosts a large part of the crypto signal community. You will need to contact an admin of the signal group to join. He/she will walk you through how pay and join.

This is an excellent moment to show how these signal providers arrange their groups. Telegram is the only way to get these groups together. A typical structure could be:

Telegram Group Free: This Telegram group contains all non-paying members interested in signing up to a premium group. The most popular group is the free one. It usually contains the most members.
Paid group – If you are confident that the signal provider is trustworthy, you might sign up to their paid group. This will give you all the premium signals. This group is where the provider must demonstrate the value that you have paid by sending signals which generate returns. They risk losing their premium members if they fail to do so.

Premium telegram groups often have cryptocurrency exchange-specific members. It is therefore important to open an account on the exchange that your provider sends signals for. The price differences between cryptocurrency exchanges can be slight. For example, an $8500 price for bitcoin on one platform could actually be $8550 for bitcoin on another.

In terms of pricing, signal providers will usually require that you pay monthly to access their premium channel. Two main payment options are available:

Cryptocurrency (BTC, ETH etc)

Cryptocurrency: This is the most popular way to access premium groups. Typically, you would notify the admin of your group which crypto currency you wish to pay in. Then they would provide you with an address to send it. As proof of payment origin, some groups require that you send the transaction ID.

Card – If you aren’t very tech-savvy, you have the option of paying by card. However, not many groups offer this option. VISA, Mastercard and other major payment processors are included.

You now have a better understanding of crypto signals providers. What are the main features to be aware of? While providers may vary depending upon which provider you choose, these are the main features that a crypto signal provider should possess:

Get notified about updates
Provide latest news stories
Offer technical analysis
Automated Trading

Notifying you with updates – Although we’ve already touched on this briefly in the guide, any crypto trading signal provider should give you regular updates about any signal they issue. You don’t want to be blindsided by a signal that doesn’t give you any information about how your trades are performing. Providers will make sure you get updates on all previous signals, regardless of whether they are updates on the buy in price, profit target, or any other important information.

Information updates – Providers who are good will comment on any news stories that might affect the signals they have issued. They can encourage their members not to give up and keep fighting, even if they receive bad news. Or they might encourage them to sell. A provider will be perceived to have more knowledge than their members and will look for guidance on how to navigate any uncertainty.

Provide technical analysis – Although some people may be content to follow the signal provider’s calls blindly, it is possible to find out more about why the signal is being issued by a group that does technical analysis. Technical analysis, also known as TA, simply uses historical trends to forecast future price movements. These are tools signal providers will use to identify profitable trades. It is possible to use whether a provider chooses to issue TA analyses as a factor in determining the provider’s competence. Providers who post clear, well-written, and easy to understand analysis could be a sign that they are competent. The provider’s credibility may be at risk if the analysis is not logical or isnon-existent.

Automated Trading–Automated trading is becoming a common feature in cryptocurrency trading. The majority of trade activity that you will see in the orderbook of a cryptocurrency is bot-related. This is because of the numerous advantages one has. Bots offer speedy execution which is why providers often have the option for members to follow signals sent by bots.