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Crypto Signals: An Ultimate Beginner’s Guide

A set of instructions from a signal provider that tells an individual what cryptocurrency to buy, at what price, and what sell-targets to use, is called Crypto Signals. These signals are trade suggestions that the provider has researched and believes will make a good return.
This ultimate guide will show you everything you need to know about cryptocurrency signals. It includes how to start, which signal providers you should use, which exchanges we recommend to follow signals, and our top tips to maximize your return. Let’s move on to the ultimate guide to crypto signals.
What are Crypto Signals?

Crypto signals, as mentioned previously, are a set or instructions that you receive directly informing you which cryptocurrency you should buy. The following information is typical of a signal:

The cryptocurrency to buy – The signal will indicate which cryptocurrency should be purchased, e.g. BTC, ETH and XRP
The buy-in price is the price at which you should buy cryptocurrency.
Sell-targets – This is the price at which you should sell cryptocurrency in order to make a profit
Stop Loss – This is a mechanism that automatically exits your position in order to minimize losses

The signal provider will usually give you an estimate of the entry target rather than an absolute value. Instead of specifying an $8500 buy-in price per bitcoin, a signal provider might offer a range between $8500 and $8600 per bitcoin. This allows traders to have a lot of flexibility in determining the right buy-in price, which could impact their profit.

If your crypto signal provider recommends a trade, you can expect a nice return.

You will be notified by your provider immediately when the entry price is reached, any profit targets are met and if the stop loss is activated. This is an excellent way to stay informed about trades without having to manually go to the exchange.

You probably know that crypto signals are specific to cryptocurrency exchanges. You will need an account on the exchange to be able to trade signals. Binance, BitMex and Bittrex are the major exchanges for which signal providers provide signals.

Receive Crypto Signals

Although there are many ways to get signals from providers, Telegram is the most widely used. Telegram, an instant messaging app with the same look and feel as WhatsApp, is called Telegram. Telegram is unique because of its bot functionality.

Telegram bots are programmed to automatically handle messages. These bots can be used to communicate with users by issuing commands in group environments. These bots can issue crypto calls, which allow users to place trades automatically without needing to log on to any cryptocurrency exchange. All trades can be placed through Telegram as long as you have the right permissions.

Email is another way to receive crypto signals. Many people are not able to subscribe to Telegram and want to generate returns. Some signal providers opt to send signals via email. This has the disadvantage that you might miss a signal if you don’t check your email every now and again. This is contrary to receiving a notification immediately from your provider when a signal arrives. Although it isn’t the most common method for receiving crypto signals, it works for some people.
Crypto Signals Providers

We now have a better understanding of crypto signals and the different ways they can be received. Let’s walk through their setup and how to join them.

First, Telegram is home to a large portion of the crypto signals community. Typically, you will need to contact the signal group administrator to sign up. They will guide you through the process of paying and joining.

This section of the guide will explain how signal providers organize their groups. These groups all use Telegram so a typical structure might be:

Telegram Group Free – This Telegram group will include all non-paying members who are interested signing up for a premium membership. The largest group usually has the most members. This gives signal providers an opportunity to show non-paying members how much they could make if they sign up for a premium membership.
Paid Group – You may sign up for the paid group if you feel confident in the signal provider. Here you will receive all premium signals. The provider must show the value of the service by sending signals that produce returns to this group. Failure to do this could result in members not renewing premium memberships for the next month.

Many premium telegram groups have a cryptocurrency exchange focus. It is important to create an account with the exchange provider you are sending signals to. Price discrepancies exist between cryptocurrency exchanges. This could mean that an $8500 bitcoin price on one platform might be $8,550 on another.

These signal providers typically require that you pay monthly for access to their premium channel. There are two options for payment:

Cryptocurrency (BTC, ETH etc)
Card

Cryptocurrency – This is the most common way to gain access to premium groups. You would tell the admin of the group in which cryptocurrency you want to pay. They will then give you an address to mail it to. You may also need to provide the transaction ID for proof that the payment was made from you.

Card – This option is available to those who are not as tech-savvy. However, it is very rare for many organizations to offer this option. VISA and Mastercard are the two major payment processors.

Now that you are better acquainted with the characteristics of a crypto signal provider, what should you be looking for in one? Although providers can vary depending on who you are, the basic features of a crypto signals provider are:

Receive updates via email
Provide latest news stories
Perform technical analysis
Automated trading

Notifying you of updates – This is something we briefly mentioned in the guide. However, a signal provider for crypto trading should always give you an update on any signal that they have issued. It’s not a good user experience to decide to follow a signal and then not know how your trade is doing. Providers will ensure that they provide updates on all signals previously issued, whether it’s an update on the buy-in price or profit-target. You can rest assured that you’ll receive a notification whenever something important happens.

Keep you informed about news stories. Good providers will comment on news stories that could affect their signals. They may encourage members to stay strong, despite receiving bad news, or encourage them to sell. Providers will be perceived as having more knowledge than their member and will seek guidance on how to navigate uncertainty.

Technical Analysis – While some people will simply follow the signals of their signal provider blindly, if you want to learn more about why a signal was issued, you should join a group that offers technical analysis. Technical analysis (or TA) is the use of historical trends in order to predict future price movements. These tools are what signal providers use to help identify profitable trades. The fact that a provider issues TA analysis can be used to determine the provider’s competence. It could indicate that the provider is competent if they post well-written and understandable analysis. If the analysis is not clear or non-existent it could be a sign that the provider isn’t credible.

Automated Trading – Automated trading has become a standard in cryptocurrency trading. Bots will often be the source of trade activity in the order books of cryptocurrency. This is due to the many advantages one provides. Bots have the greatest advantage in execution speed. Providers will often offer the option to allow their members to follow the signals through the use a bot when they send them out.