Crypto Trading Signals – Things to Consider

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How To Use Crypto Trading Signals The Right Way

Please Note: This article is part of the Best Crypto Signals on Telegram article series, which explores and educates on how to trade crypto signals. The idea of crypto trading signals will rely on technical analysis indicators, upcoming news/special information, or a combination of both. Once enrolled in a channel, you will get the trading signals in a format like this DOGE trade from Fat Pig Signals:

Let’s review the signals above and explain what they mean so you can make an informed decision. At first, we see a small explanation or technical analysis of the trade and why they have chosen to take them. Most trades run against USDT or BTC unless stated otherwise. The buy area is the price at which you place your buy orders if you trade manually. If you use a trading bot like Cornix, the signal provider, Fat Pig Signals, will share the trade settings with the BOT. You only need to specify the allocation amount you want to use for each trade.

The invested amount/trade

One of the biggest mistakes novice traders make is to go all-in, hoping to double their account overnight. Slow and steady wins the race. So, what is your risk tolerance and trading style? How much should you invest in each trade? We think that 5% of your total capital should be the maximum. These 5% should be allocated with averaging in mind.

For example, If you have 10K USDT as equity, a cryptocurrency signal comes in with an entry spot at 0.093. 5% of your capital would mean using 500 USDT for this trade. However, we don’t place a single order with 500 USDT at this price. Instead, we spread 100 USDT orders every 2-3% in a range of 10% below the entry price.

This means you have 400 USDT to spread within this zone. This technique is called Dollar-Cost Averaging. In a volatile cryptocurrency market, prices may dip below Fibonacci levels, pivots, supports, or other key levels. Therefore, it is advisable to spread your buy orders across these levels. The downside is that you might invest less than you initially intended, but that is OK. Better safe than sorry.

The Telegram channels we selected here offer tested and working customer support and they can help you on your trading decisions. They should assist you in applying a reasonable trading strategy and technical indicators for your funds/equity, either through manual signals or through automated trading signals using a bot.

The Trade Signals Targets

Here, you decide if you want to lock in your capital longer, for higher rewards, or you want faster profits. T1 to T6 are the target sell levels. The higher the target, the longer it could take to reach it. We like splitting 50%/30%/20%, but it depends on how high the targets are. A great way to calculate the % to be sold at the short-term targets is the breakeven zone. Adjust the percentage values so that you reach your initial purchasing price. However, something is still left over from the purchased coin, so it becomes a risk-free trade.

The price jumps to T6 0.228 USDT, and you sell DOGE in the market’s worth of USDT. You retain USDT, exiting the trade and reducing your risk. Sell 50% at the first target, move the stop-loss to entry—risk-free, with profits secured. If you want to automate the laddering procedure in and out like described, we suggest the 3Commas Bot or Cornix. Often, you will find short-term targets, as well as mid-term and long-term trading signals.

Types of trading signals: Short-term, mid-term, or long-term?

There are three types of trading signals: Short-term crypto trading signals are supposed to hit the targets within a few hours or the same day. Mid-term signals take a few days to hit their targets. Long-term signals are meant to hold for up to a few weeks.

Please note: We mention mainly 3 trading platforms here. Binance, Bybit, and Bitmex are the platforms for cryptocurrency trading the providers officially committed to providing their analysis for. You can use trading signals on other exchanges if the coin is available. Let’s move on to the best crypto trading signals that the Telegram channels have to offer right now.

General Things To Know To Get Started

• Utilizing crypto trading signals effectively requires a balanced approach that integrates both the insights provided by these signals and your own analytical skills. Please start by selecting a reliable source of signals, such as the best Telegram channels, from our reviews. Those offer transparent trading performance metrics and a solid track record.
• Never go “all in” – diversify instead. Subscribing to all mentioned providers ensures you receive plenty of sensible trading signals. Use 1/10 of your available funds for each trade as a defined maximum.  Never invest all your BTC in one or two coins on your trading platform. Diversify your balance with *1/10. Remember to set a stop-loss 5% below your entry point on those unstable days. Always set a stop-loss at the entry point after the price increases. Always sell 30-50% of your investment, set a stop-loss at 5-10% below after reaching the first target, and use trading alerts.
• It’s essential to implement sound risk management practices, such as setting appropriate stop-loss orders to safeguard your capital against unforeseen market movements.
• Most experienced traders would use the first sell target and sell between 30 – 50% of the funds used in the trade. So basically, if you get three targets, you would set up three sell orders. Target 1 with 30 – 50% of your trade size, target 2 with 30 – 40%, and target 3 with 10 – 30%. Remember that the higher the target, the smaller the chance it will be reached. So if you don’t like to end up with a fraction of your investment as a bag holder, you should prefer a conservative route. Some of the channels we present sometimes offer signals based on unique information. It is advised not to be too conservative here, as this potential trading opportunity can explode to unbelievable heights.

DIY – Do it Yourself

• Should I learn to trade myself? Learning to trade can be a long and painful process. From EMA and Moving Averages to RSI and neural network-based trading, picking random information can be confusing. Choose a Signal Provider offering a comprehensive education pack to become a successful trader. Not all web information is correct or well-structured. A mentor from these providers is highly recommended.
• Keep in mind that this is not Forex trading due to the volatility. One should be careful with margin and leverage. Please ask yourself if this kind of trading strategy suits your trading style.
• In a nutshell, I’d recommend adapting to the overall environment. First, I would not use more than 5% of my equity per trade. This will make you feel easier if the price dips. In bear market conditions, trade only 5% on coins with strong fundamentals. Check socials and roadmaps. If promising market updates are upcoming, trade the signal without a stop-loss, as the news might trigger recovery. However, I get out of the trade once we hit break-even and don’t risk holding it for more returns. In bull markets, use a stop-loss on underperforming coins. It’s better to free up capital for rising opportunities.

STOP-LOSS or HODL

• Stop-loss or no stop-loss? This HODL question is highly discussed among successful traders and is difficult to answer. Several factors have to be considered. Let us think about this for a bit. Generally, the gains you can make with crypto trading are pretty high – without using any margin or leverage, as crypto itself is volatile enough. This leads to the chance to trade without any stop-loss and protect your overall equity in the long run. Worst case scenario: Every signal you trade hits your loss targets – this decreases your equity slowly trade by trade and removes the chance to recover from the particular trades. Using a stop-loss implies one of the few opportunities to burn crypto accounts. On the other hand, this locks your capital – if you take some losses within your loss targets, you might recover from these with a few other crypto currency signals.
• Dumps are likely to happen sometimes. You trade altcoins against BTC – this is risky per se, as everything depends on how Bitcoin moves. Bitcoin rushes, altcoins dump. Bitcoin dumps, altcoins dump. This is normal. The best environment for all crypto trading signals and crypto altcoin trading, in general, is when Bitcoin moves sideways. Be prepared for a price drop and keep 30% of your funds in Bitcoin. This allows you to buy the dip and hedge against losses. Don’t blame the signal providers for that. Bitcoin’s next move is difficult to predict, so they can’t foresee every drop. However, they will surely help you on the way up with good recommendations on what to buy in that particular dip.

Automation

• Can I just go for automated trading signals solutions? It depends. Of course, we all would love to earn money hands-free with automated trading. Today’s possibilities of machine learning algorithms should enable us to automate crypto trading, right? While we believe this data can be helpful, we would not rely on it – we cannot trust our funds to a fully automated bot. In our opinion, it is just a tool that can do great work – along with a pair of human eyeballs in front of the computer to confirm the validity of the signal. Don’t let the wish for overnight riches make you enable a bot to buy and sell cryptocurrencies without your confirmation.
• How to use Cornix as an add-on with the signals? The Cornix tech backend is pretty nice and -as an add-on- not bad. The Cornix Telegram bot is precisely that: a bot you can connect to your account after the first Cornix login. You can check out the Cornix bot with most signal providers’ 14-day trial, though you want to use it cautiously.
• We mention whether the provider’s signal works for leveraged trading on the Bybit platform. Please remember that cryptocurrencies are very volatile, and risks are involved in trading this way.

You have to be like water, as Bruce Lee said – don’t be a stick, but see what is happening around you and adapt your trading strategy with it.

Crypto Experts Round Table

Important Industry Figures Share Their View on crypto telegram channels & trading signals

Yes, we are biased – with the channels mentioned in the best signal groups on Telegram we had and still have good success with our trading. As you might know, emotions, subjective views, and trading don’t go very well together. So, we invited experts from the crypto industry to let us know their general views on crypto telegram channels and how to estimate the given trading signals.

We invited the big names to drop us a line on this important topic, and here they are! Enjoy the unbiased opinions and valuable insights by Crystal Stranger (Peacounts), Eric Kovalak (Vellum Capital), Maksym Nedobor (Hacken.io), Vikram Ramakrishnan (Quantlayer), Vyom Mahadevia (Cindicator), and Henry Stanley (ICOAxiom). Enjoy!

Crystal Stranger

LinkedIn: Bio: Crystal Stranger, EA, author of The Small Business Tax Guide, has more than 20 years of financial markets and tax experience, with a focus on international tax. She has been writing about Cryptocurrency tax and regulatory issues since 2014. Wanting to help her tax clients who struggled with regulatory compliance, she founded PeaCounts, a blockchain accounting Software Company building a revolutionary new payroll system using the token PEA. This new, transparent payroll will promote fair wages and eliminate the need for black market labor.

Crystal Stranger’s tip on how to estimate trading recommendations:

“I always try to look for numerous signals before moving into a cryptocurrency position. Digital currencies, in general, have fewer fundamental drivers than technical signals when compared with stock investing.

The most successful investors I know switched from Forex trading signals to cryptocurrency trading signals, as the fundamental drivers are pretty similar in being more economic and cultural. I like to see economic indicators and market factors for a move to buy in, such as numerous publications releasing positive news stories about crypto on the same day. 

Also, holidays in big crypto-purchasing regions such as China or Japan can influence the financial market. It is important to look for patterns and market trends based on certain times of the year. 

When the current market condition is low, many buyers are on the sidelines. Timing the bottom is a loser’s game. When moving positions into the market, it is better to cost average your purchases in. Pick a day and time each week when the market movements normally take a little dip and set a buy order for that time. This way you average out your cost of entry over several weeks to get a better overall price for placing your position.

Eric Kovalak

Website: www.vellum.capital
LinkedIn Profile: https://www.linkedin.com/in/erickovalak/

Bio: I am CEO and managing partner of Vellum Capital, a cryptocurrency and digital asset hedge fund based in Atlanta and Grand Rapids, MI.   My background is in derivatives trading and quantitative research. I have completed extensive work with options markets, cryptocurrency startups, and venture capital. I have a BA in Economics and an MBA.

Eric Kovalak’s tip on how to estimate trading recommendations:

Price-based trading signals are parametric – their indication is generally a static calculation from historical data. The signal may or may not be calibrated correctly, and the historical data may or may not have any value to tomorrow’s prices. A technical trader must have an opinion about the accuracy of their tool and the value of the data. Sometimes a trading signal provider tool will be too fast in a market and other times too slow.

This is a good problem to solve by the human mind, which can easily infer fast conclusions from visual data (looking at charts). Estimating the value of market data can be more difficult. Many times, people go deep into market microstructures in an attempt to find additional data points. But data often records a unique situation in history.

Data problems may be best solved with a large data set and data mining tools that can quickly find historical patterns and factors. Then the trader only has to determine if history is likely to act in a similar way in the future.  Generally, the best way to solve both of these problems is to gain robustness through simplicity. I’ve found large funds to use the 200-day SMA as a trade filter rather than draw lines all over a chart, so it ends up looking like a galactic battle plan.

Maksym Nedobor

LinkedIn Bio: Blockchain tech enthusiast. SMM director at Hacken OU (http://hacken.io/). My biggest passion is the economic and technical aspects of blockchain technologies. Professional trader and investor in projects with real working products.

Website

Maksym Nedobor’s tip on how to estimate trading recommendations: I rarely use crypto trading signals on Telegram; however, I have 3 main rules to which I try to stick too when trading with their help:

• Trading Signals must be technically compliant: if there is no analytics explaining why it’s high time to buy, I would never resort too
• The signal should not be “BUY NOW,” but it must determine the support level and growth target.
• Quality and trustworthy signals aren’t free. I believe that only 1% of such free trading signals on Telegram channels are trustworthy. BUT! This 1 % is usually marketing or promoting. On the other hand, paid signals is also an ambiguous point. The thing is that when you can trade and analyze the market dynamics, you don’t need to pay money for signals and pieces of advice.

Vikram Ramakrishnan

Twitter Bio: I’m Vikram Ramakrishnan, an experienced market analyst, and co-founder at QuantLayer quantlayer.com, a crypto market intelligence company.

Vikram Ramakrishnan’s tip on how to estimate trading recommendations: We monitor sources like what coin teams’ admins are saying in their chat rooms, github commits which are examples of what code has recently been incorporated into a coin’s codebase, press releases that coin teams are putting out, and a whole bunch of other sources. 
There are a lot of signals which can affect a coin’s price movement. For example, we captured the latest admin chatter on VEN when they were talking about airdrops. VEN moved +40% after the admin team explained when they were going to be doing the airdrop.
Another example was SUMO, when its Github repository got pulled from Github due to DMCA violations. SUMO sold off 60% because people were worried about the reliability of the team. 

Vyom Mahadevia

Website: https://cindicator.com
Twitter: https://twitter.com/Crowd_indicator 

Bio: Vyom Mahadevia, Crypto Trader at Cindicator

Vyom Mahadevia’s view on tip on how to estimate trading recommendations:

There are two main signal types out there:

1) Signals based on technical analysis
2) Signals based on detailed fundamental analysis research

1) Trading Signals based on Technical Analysis

• Short-term signals.

Most of the paid trading signal providers give short-term signals without any explanation, and I tend to ignore them. An example of such a signal would be something like this:

I tend to completely ignore this type of signal as there is no basis or explanation for it. These signal types might work in a bull market opportunity where everything is pumping, but it is very unlikely to work out in a bear market.

• Medium-term signals:

A chart with some form of TA or technical indicators usually accompanies these types of signals. To my knowledge, none of the crypto trading signal providers make long-term forecasts. Their forecasts are either really short-term or short/medium-term. In this scenario, where their analysis complements the signal, I recommend that traders conduct their own analysis.

Once you‘ve done your own TA, you can then check to see if the direction of the signal is in line with your analysis. If it is, then that would increase your confidence in the trade. And then, if the risk/reward ratio is good enough, you could take the trade.

The reason I say check the direction and the targets from the trading signals is that the analysis itself could be based on a completely different method of TA, so you don’t have to focus on that. You should stick with the technical analysis method that you are comfortable with using these trading signals.

2) Trading Signals based on detailed fundamental analysis research

This is more useful if the signal provider conducts legitimate research on a coin. With a wide range of coins constantly emerging, detailed research reports save you hours of personal research.

This type of research is usually also supported by price forecasts. What I would do with this type of crypto trading signals would first be to go through the report that they have published on a particular coin and see if it is worth looking into a bit more. If I find the coin interesting enough for a long-term investment then I would look into it further and conduct my own research and make informed decisions. It does help to weed out coins that aren’t worth spending too much time on.

Henry Stanley

Twitter Bio: Henry is the CEO of ICOAxiom.com 

Henry Stanley’s tip on how to estimate trading recommendations:

There are no trading signals that will be 100% accurate, you will have to do your own research, you’re not able to just make the trade and forget about it. It has to be closely monitored. As for if the crypto signals are good to enter, the only thing you can do is review the past performance of the trading signals provider, see if it makes sense, see how accurate they were previously, maybe view other signals from experienced traders, see if they have the same viewpoint.

Over time as you get better at trading crypto you will get a better feel for a trade signal. It is something that is learned with experience. An additional tip, risk only the amount of money you can afford to lose and watch the trade closely if it does not work out as expected then close out the trade and limit your loses.

A Warning: Be Careful With Shady Signal Providers

Unreliable, shady persons push random trading signals and promote the ones that end in profit in endless circles of self-adulation – even if the overall performance sucks. Even worse are Pump and Dump groups – some of them state that they are PnD, so at least you know that you are jumping into a significant risk for your capital. Others pretend to be serious altcoin telegram trading signals provider to lure you into their scheme – of course, they are the only ones who will profit at the end of the day.

However, how does one know a telegram crypto trading signal provider is a scam when joining it? Check out the trades they suggest; if they recommend some shitcoin and you open it on Binance and see already a large green candle, it is usually already pumped and is likely to die right after you bought some of it. Bad spelling and grammar and the permanent use of rockets, moons, and $ signs are added indicators. Be careful; those signal provider groups often use little pseudo-news to make you think they are legitimate.

Paid Crypto Trading Signals Leakage Groups

You might come across advertisements for signal providers that steal other groups’ signals and offer them for a lower price. Or even worse, re-sell it in a signals channel as their work. Of course, this will give them – and you as a buyer – bad mojo over time, but there is more why you should not fall for this scam.

Content-theft scheme

If you think about giving those scammers your money to support their content-theft scheme, you should think about the following:

• You will get the crypto trading signals with a delay, and timing can be crucial. They have to copy and paste it. They have to be around in time, as they never know when the next signal is going to be posted. So it can take hours until you get the signals, probably too late.
• You miss out many extras, like personal support. What if a trade didn’t work out well? The providers in this post can show you ways out of the trade with techniques like hedging. You are entirely on your own if you use a leaker channel.
• Crypto transactions are not reversible. One can offer all trading signals from all big signal providers in one place for 0.1 ETH – sounds like a perfect offer, right? However, why should they give you anything? The “seller” is an anonymous nobody who can just set a low price to convince you and exit – Crypto transactions are not reversible. You risk your capital with such purchases.  The providers we list here, are the ones with a reputation, they have to lose something. Crypto trading signals leaker channels not – they move on and open the next one.

About Telegram

Apart from the trading platform, this post contains only crypto trading providers operating on a Telegram chat platform. This paragraph shall clear things up for those who are new to the concept of the app and want to know how to join the trading signal provider’s Telegram channels. The cloud-based messenger app enables you to create an account with a sim-enabled smartphone and lets you chat with your contacts (similar to Whatsapp).

Your account is tied to your phone number, so you cannot open more and more accounts randomly. While the chat protocol offers “secret chats” with end-to-end encryption, the usual chat runs unencrypted, cloud-based on servers across the world. Besides the chat feature (which you can also use for contacts, not in the contact list of your smartphone and, e.g., find them in a chat room), you can create telegram channels. These feed you with pieces of information like those used for the signal provider telegram channels in this post.

How do you join a Crypto Trading Signals Telegram Channel?

If you want to join, you enter with a custom Telegram channel link; the channel owner will provide it to you once you sign up. If the channel owner posts something, you get a notification (in our case, for a signal) – these notifications are gladly highly customizable. Paid Telegram signal providers will let you pay the fee first and then send you a link to join, which expires. Alternatively, the channel owner might add you directly to the group if your security settings allow it. The channel search enables you to find old posts if you want to check the outcome. 

Many signal providers offer telegram group chats for the sake of transparency and to build a community around their channel. Most have free trading signals telegram groups and channels available, as well as hidden groups for their Premium or VIP members. You cannot access these directly. Also, here, you get a group invite link after you sign up, which we encourage you to do. Often, you can gather valuable contacts or find additional information and direct support. While Discord attracts many scammy projects, Telegram is much better in this manner. Telegram is available for iOS, Android, and Windows/Mac apps and is accessible per web platform.

Final Words For Your Crypto Trading Journey

We hope you enjoy this small selection and find a good crypto signal provider on Telegram that fits your needs. Hundreds of thousands of channels are out there, making it hard to find the right crypto trading Telegram group for you. While many of them are scams, we can vouch for these here. From our in-depth research, this has been the most promising if you follow the trading signals. Don’t overreact if the price sometimes dips and holds until targets are reached. You will have excellent chances to profit from these signal providers.

Always remember

If BTC runs or drops, no signal provider or trading algorithms can help, as this affects mostly all the altcoins. There is just one way out – HODL and AVERAGING until bullish and adapt your stop-loss strategy as I described above. That being said, keep in mind that everyone can have great stats for crypto trading signals if we’re in an alt season. The thing to determine if a group issues good Binance trading signals or not is if they hit bottom once Bitcoin makes big moves. Only this situation shows in the long run if a provider has market knowledge, good analysis techniques, and a good one to go with.

In some cases, you’d better hold back with trading signals and observe. Please note that we continually update this post with providers. We remove and add providers based on their performance and behavior with customers. Our goal is to show off the best crypto trading signals, especially altcoin trading signals, and make them accessible to you, though the provider market is very dynamic. If we see the performance of crypto trading signals dropping, we might remove signal providers anytime.