It is no longer news that the cryptocurrency industry has turned so many average income earners into overnight millionaires. Successful traders are privileged to get the correct information about the right time and price to buy a particular coin or token.
At the moment, there are tons of crypto signal providers in the market, thus giving traders the problem of selecting the right one. Many of these crypto trading signal providers have a good track record of giving out quality signals, while others are only in the business for the money.
Before considering the best trading signal providers, you might need help understanding what a trading signal is.
What are Crypto Trading Signals?
Crypto Trading signals are trading ideas from expert traders to buy or sell a particular cryptocurrency at a specific price or time.
Analysts usually give out vital information to their clients or subscribers after the trade is thoroughly researched, which mainly involves following news updates of the coin and studying its market data. Such as Binance Signals, FTX Signals, etc
The best crypto trading signals are prevalent because their followers believe that they do most of the work for them. However, crypto traders must manage their accounts and stay vigilant once they initiate trades.
How to read trading signals?
The biggest challenge that comes up is to understand them right. Receiving handy trading signals each day is all good and well. However, if you don’t know how to read or interpret them, they won’t help. As a rule of thumb, each signal will consist of the following:
- The ‘Action’ is a call-to-action that encourages you to either ‘Buy’ or ‘Sell’ the security, asset, or coin in question.
- The ‘Pair’ is a list of two different currencies, with the value of one quoted against the other for context.
- The ‘Stop Loss’ (S/L) is essentially an exit point designed to protect your investment. When actioned, the S/L is the preset price you are pulled out of a trade when losses occur.
- The ‘Take Profit’ (T/P) – This is the opposite of the Stop Loss. When actioned, the T/P is a preset price at which your investment is essentially sold or ‘cashed out’ when a certain level of profit is hit.
- ‘Current Market Price’ (CMP) – This is designed to help you compare the price of the currency pair when the signal was issued with the actual price at the time of submitting the order.
- For example, a signal may read: ‘Sell USD/GBP at CMP 0.9408 – S/L 0.9439 – T/P 0.9378’
- If we break this signal down, the signal is to ‘sell’ with the pair in question relating to US dollars and British Pounds. The CMP is 0.9408, and the signal is advising you to set an S/L at 0.9439 and a T/P 0.9378.
While this is all the information some trade signal providers will give, some companies, such as AltSignals, ensure their signals are delivered more user-friendly way, with all info included presented in an easily understandable and translatable format.
How Much Profit Can I Make Through Them?
We regularly receive this question: if it is possible to make profits following trading signals providers. The answer is yes. It is possible to make profits following trading signals providers. However, profits are not guaranteed.
Indeed, you can still lose money with trading signals providers. You should know that the team behind these trading signals groups has been working to create signals that follow specific indicators pointing to the best moment to buy or sell an asset.
If these signals are not accurate, the group would go under and not operate anymore. If you want to remain profitable trading with signals providers, you will also need to understand how the signals the groups provide will fit into your trading strategies. Each group is different and would send diverse kinds of signs.
Some Key Strategies
There are many different strategies on how to find accurate trading signals providers better. Here we give you some tips:
- Check the number of followers they have
- Confirm the followers were not bought
- Check their official site.
- Search for monthly reports about the signals provided
- Check their blogs to see if they have content uploaded regularly.
- See the comments on Trustpilot.
That’s how you can initiate your way to generate huge profits. Trading in the cryptocurrency market is not so easy, but trading signals providers help us remain profitable. Nonetheless, these best crypto trading signals groups do not guarantee results or profits. However, trading with signals can make the whole trading experience much better and more profitable if you analyze.