Trading crypto can be life-changing if you catch a cryptocurrency surging. But when you plan on trading cryptocurrency on a regular basis, you need to be realistic about your trades to make a profit even when there are no huge moves on the market.
For that, you need a well-structured plan, a good strategy and to constantly keep an eye on the market.
Fortunately, you don’t have to be permanently connected to the market in order to have successful trades. Crypto signals can help you set up trades with a good chance to end on the profitable side.
However, you need to be very careful when you choose such a provider.
Who Are These Signal Providers?
Experienced traders scan the news and make complex technical analyses in order to stay performant. They do so to earn a living out of cryptocurrency trading.
And after years of practice, they gain the ability to understand how the markets are moving and find the paterns that show if the price may go one way or another.
There is always room for mistakes in the cryptocurrency trading world. Still, these traders are vigilant enough to set up and use all the tools that can minimize their losses and maintain their portfolio profitable.
If they were not, they would have abandoned trading a long time ago.
When the veteran crypto traders get a decent understanding of the market and create systems that can achieve a high rate of profitable trades, they can establish a few signals that help them discern what actions to take.
And while some traders chose to keep the information to themselves, others decided to share it with the crypto community.
Some offer free crypto signals on Telegram; some choose to form exclusive groups where you can gain access by paying a subscription.
But just like in the stock market, there are many pretenders in the cryptocurrency trading world as well, and you need to be cautious about them.
Crypto Signal Provider Red Flags
Like it or not, the first red flag you may find when looking in a trading signals provider is that all the info he provides is for free.
There are a lot of scammers in the cryptocurrency world, and some may pretend to be signal providers to embezzle market attention towards a crypto asset or another.
What do they get out of it?
They may be looking to simply inflate the price and dump their cryptos on those who took their advice, or they might just want to get out of a trade from a crypto with no activity.
There are millions of reasons bad actors would want to fool inexperienced traders.
Therefore, don’t be cheap about it. It’s better to pay a subscription to a reputable crypto signals provider and receive legit advice than to have your portfolio suffer.
Next, a crypto signals provider CANNOT have a 100% success rate. It’s simply impossible.
The cryptocurrency market is volatile, and the graphs go all over the place. Inevitably, even the best cryptocurrency traders have failed trades.
A legit crypto signal provider will acknowledge he is not omniscient, giving you a realistic success rate (82%, for example) and explaining how to set and when to set your take profit, stop loss, or limit orders so you will stay on the profitable side even when the market is acting against you.
And last but not least, a crypto signal provider that only states his opinion and eventually tries to convince you to act on it is definitely not good.
A credible crypto signal provider will give you a technical analysis and explain why they believe the orders should be executed in a way or another. They would not try to compel you but present rational arguments.