If you don't have time to conduct market research or educate yourself about the crypto space, crypto trading signals could be the way forward. This controversial trading strategy is commonly discussed in terms of scams and fraud however, it is also possible to find legit trading signals that could help you to make profits from your trading.

In this article, we cover what crypto trading signals are, how to use them and how to avoid scams.

What are crypto trading signals?

Crypto trading signals are simply trade alerts for the cryptocurrency market. They can come from a human analyst or an automated software program and can be delivered via email, SMS, a trading platform or social media.

A trading signal will typically include details such as the asset to trade, the entry price and the take profit target. Some signals may also include a stop loss level.

Simply put, signals are educated suggestions that aim to help traders make profitable trades.

How do crypto trading signals work?

There are two main types of trading signals: technical and fundamental. Technical signals are based on chart analysis and focus on patterns such as support and resistance levels, candlestick formations and moving averages. Fundamental signals, on the other hand, consider factors such as economic news announcements, interest rates and political stability.

Some trading signals providers will rely on a single type of analysis while others use a combination of both technical and fundamental analysis.

When providers have conducted their analysis , they will send out trading signals to subscribers who can then choose whether or not to act on the advice.

Of course, it is important to remember that trading signals are never 100% accurate and there is always a risk of losses.

How to use crypto trading signals

If you decide that you would like to start using trading signals, there are a few things that you need to keep in mind.

First, you will need to find a reputable provider. This can be tricky as there are many providers offering signals and it is not always easy to know which ones are legit and which ones are not. Do some research and take your time before making your decision.

It is also important to remember that no trading system is perfect and there will always be some level of risk involved. Before using trading signals, make sure that you understand the risks and are comfortable with them.

You will then need to sign up to a crypto trading platform or exchange. We recommend SokuSwap because it is completely decentralized which gives you complete control over your funds.

Finally, don't forget to test out the trading signals on a demo account before risking any real money. This will allow you to get a feel for how the system works and whether or not it is right for you.

How to know if crypto trading signals are legit?

The first step is to research the trading signal provider. If they don't have a good reputation or track record, it's best to avoid them. It's also important to read reviews and testimonials from other users before signing up.

Another way to assess the legitimacy of a trading signal is to trial the service with a small amount of capital before committing more money. This will allow you to see how accurate the signals are and whether or not you're able to make profits from using them.

It's also important to remember that trading signals are never 100% accurate. Even the best trading signals will only be right around 60-70% of the time. This means that you will need to have a good money management strategy in place to protect your capital.

Crypto trading signals vs bots

Crypto trading signals and bots are both tools that can be used to trade the cryptocurrency market. The main difference between the two is that trading signals are created by human analysts and aim to simply guide decision making. On the other hand, bots automate trading to create a passive trading system so decide when to place trades for you.

Bots can be a helpful tool for traders as they can take on the task of conducting market analysis and executing trades. However, they can also be quite risky as they can make mistakes and cause losses.

Trading signals, on the other hand, provide an expert opinion on the market which can be helpful for traders who don't have the time or experience to do their own research.

Which one you choose to use will depend on your individual trading style and preferences. If you're new to trading, we recommend starting with trading signals as they can be a less risky option.

Frequently asked questions

How to find crypto trading signals?

The best way to find trading signals is to research different providers and compare their offerings. You can also read reviews and testimonials from other users to get an idea of what others have experienced.

How much do trading signals cost?

The price of trading signals will vary depending on the provider. Some providers offer free signals, while others charge a monthly subscription fee.

How accurate are trading signals?

Trading signals are not 100% accurate and will usually be right around 60-70% of the time. This means that you need to have a good money management strategy in place to protect your capital.

Do trading signals work?

Trading signals can be a helpful tool for traders who don't have the time or experience to do their own research. However, they are not 100% accurate and you will need to have a good money management strategy in place to protect your capital.

Posted 
Jul 3, 2022
 in 
DeFi Education
 category

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