Crypto Trading Signals – Things to Consider
How To: Using Crypto Trading Signals The Right Way
The idea of crypto trading signals will rely whether on technical analysis or on 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:
Let’s go through the signal above and explain, what it all means. At first, we see a small explanation of the trade signals and why they have chosen to take it. The majority of the trades are running against BTC if nothing else has been stated. The buy area is the price in sats where you place your buy orders. If you have 0.1 BTC to spread, you could set a buy order for 0.03 at 2350. Then another one of 0.02 at 2330 all the way down to 2300.
Please Note: This article is part of the “Telegram Crypto Signals” to explore and educate in the complete crypto trading signals/education.
This way you are averaging your trade for the case the price drops further and gives you a better entry price in the mean. You might have seen that I use odd numbers for the buy orders and you should do that as well. 2352 is more likely to fill than 2350 as most newbies will place buy orders at the bigger round numbers. You judge by reviewing the crypto signals above.
The invested amount/trade
One of the biggest newbie mistakes is it to go all-in and to wish to double your account overnight. Slow & steady wins the race. So how much should you invest in each trade? We think that 5% of your total capital should be the maximum. These 5 percent should be placed with averaging in mind. Example: You have 1 Bitcoin as equity. A cryptocurrency signal comes in with an entry spot at 0.0023475. 5% of your capital would mean to use 0.05 for this trade. But we don’t place this order with 0.05 at this price. Instead, we spread 0.01 orders every 2-3% percent in a range of 10% below the entry price.
We have 0.04 sat to spread in this zone. This technique is called Dollar-Cost-Averaging. In a very volatile trading environment like with cryptocurrencies, we have to expect that the price will move below fibs/pivot/support/whatever spots. This makes it advisable to spread your buy orders all over the place. The only annoying thing is that you will likely invest less than you actually wanted, but that is OK. Better safe than sorry. The telegram channels we selected here have tested, working customer support. They should help you to apply a reasonable trading strategy for your funds/equity.
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, T2, and T3 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 a bit on how high the targets are. A great way to calculate the % to be sold at the short-term targets, is the breakeven zone. To adjust the percentage values that you reach your initial purchasing price. But still have something leftover from the purchased coin, so it becomes a risk-free trade. Simplified example to get you the basic idea: You bought 1 Bitcoin of VIBE at 3150 sats.
The price jumps to 5500 sats and you sell VIBE in the worth of 1BTC to the market. You will still have VIBE in your account and are officially risk-free now. Another great technique is to sell 50% at your first target and move your stop-loss to your entry price. Risk-free trade again, with profits locked in. If you want to automate the procedure of laddering in and out like described, we suggest the 3Commas Bot. Often you will find short-term targets, mid-term, and long-term trading signals.
Short-term, mid-term or long-term?
Short-term crypto trading signals are supposed to hit the targets within a few hours or the same day. Mid-term take a few days to hit its targets. Long-term signals are meant to hold for up to a few weeks.
Please note: We mention mostly three trading platforms here. Binance, FTX, and Kraken are the markets the providers officially committed to providing their analysis for. You can still use the trading signals also for example as Poloniex trading signals if they have the coin in their offering. Let’s move on to the best crypto trading signals telegram channels have to offer right now.
Valuable Altcoin Crypto Trading Signals Tips / General Things To Know To Get Started
- Never go “all in” – diversify instead. If you subscribe to all the mentioned trading signal providers in this post, you should get plenty of trading signals that make sense. Use 1/10 of your available funds for each trades 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 stop-loss 5% below of your entry point at those unstable days. Always set a stop-loss at entry point after the price increased. Always sell 30-50% of your investment and set a stop-loss at 5-10% below after reaching first target.
- Most traders would use the first sell target and sell between 30 – 50% of the funds that have been 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%. Keep in mind, that the higher the target, the smaller the chance that it will be reached. So if you don’t like to end up with a fraction of your investment as bag holder, you should maybe prefer a conservative route. Some of the channels we present offer sometimes signals based on special information. Here it is advised not to be too conservative, as these trading signals can explode to unbelievable heights.
- 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. So be prepared for the dump upfront and keep 30% of your total funds in Bitcoin to be able to buy the dip and hedge yourself out. Don’t blame the signal providers for that. Bitcoin’s next move is difficult to predict, so they can’t foresee every upcoming drop. However, they will surely help you on the way up with good recommendations on what to buy in that particular dip.
- We mention if the provider’s signal works for leveraged trading on Bitmex trading platform. However, please keep in mind that cryptocurrencies are very volatile and there are risks involved in trading this way. Keep in mind that this is not Forex trading and due to the volatility. One should be careful with margin and leverage. Please ask yourself if this kind of trading is suitable for your trading account.
- Stop-loss or no stop-loss? This HODL question is highly discussed between cryptocurrency traders and is not easy 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 – and that without using any margin or leverage as crypto itself 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 stop-loss – 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 an account in crypto.
- On the other hand, this locks your capital – if you take some losses with stop-loss, you might recover from these with a few other trade signals. 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. If you have to trade in bear markets, I would trade this 5 % only on coins that have strong fundamentals in the pipeline, check the socials, check the roadmap (also other facts for that coin can matter, check our coindata.io review on these factors). If I see they have stuff upcoming, I decide to trade the signal without stop-loss, as there are chances to recover due to the news that coin/token will bring up soon. However, I then get out of the trade once we hit break-even and don’t risk holding it for more returns. In bull markets, it is different: If everything keeps going up and I am on one of the few coins that suffer, I use a stop-loss, as it makes no sense to keep my capital locked in there, as most of the opportunities go up. You see, 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.
- How to use Cryptoping as an add-on with the signals? The cryptoping tech backend is pretty nice and -as an add-on- not bad. Its signals are nothing where I would throw money blindly on it, but if you can effort to load up a cryptoping coin, you can use it for confluence reasons and get a double confirmation. The cryptoping telegram bot is precisely that: a bot you can connect to your account after the first cryptoping login. This service monitors the crypto markets and notifies you when an asset gets an unusual amount of market action – so basically, nice add-on, though it needs human confirmation. You can check out the crypto ping telegram bot with a free trading signals trial, though you want to use it with caution.
- Should I learn trading myself? Learning to trade can be a long and painful way. From exponential moving average (EMA) or Moving Average to relative strength index (RSI) up to trading based on a neural network – it is a rabbit hole which leaves you lost if you pick some info here and some info there. If you want to achieve this goal and become a trader yourself, we would suggest going with one of the Signal Providers that provide a decent education pack within their service offering. Not all info on the web is correct, nor structured in a helpful way, which is why we suggest to get yourself a mentor from one of these providers.
- Can I just go for automated trading 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 that 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 enabling a bot buying and selling cryptocurrencies without your confirmation.
Crypto Experts Round Table
Yes, we are biased – with the channels above we had and still have good success with our trading. As you might know – we think 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 view 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 by Crystal Stranger (Peacounts), Eric Kovalak (Vellum Capital), Maksym Nedobor (Hacken.io), Vikram Ramakrishnan (Quantlayer), Vyom Mahadevia (Cindicator), and Henry Stanley (ICOAxiom). Enjoy!
Bio: Crystal Stranger, EA, author of The Small Business Tax Guide, has more than 14 years of 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. Cryptocurrencies, in general, have less fundamental drivers than technical signals when compared with stock investing.
The most successful investors I know switched over from Forex trading, as the fundamental drivers are pretty similar in being more economic and cultural. I like to see economic reasons for a move to buy in. For example, 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 market. It is important to look out for patterns based on certain times of the year.
Right now the market is low, so many buyers are still 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 that the market normally takes 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.
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 derivatives trading and quantitative research. I have completed extensive work with option 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 be solved by a 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 microstructure in an attempt to find additional data points. But data often times 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 patterns and factors in history. 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 though 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.
Bio: Blockchain tech enthusiast. SMM director at Hacken OU (http://hacken.io/). My biggest passion is the economic and technical aspects of blockchain technologies. Trader and investor in projects with real working products.
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 to 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 to.
- The signal should not be in a form of “BUY NOW” but it necessary has to determine support level and growth target.
- Quality and trustworthy signals aren’t free. In fact, I believe that only 1% of such free trading signals Telegram channels is trustworthy. BUT! This 1 % is usually marketing or promoting one. On the other hand, paid signals is also an ambiguous point. The thing is that when you can trade and analyze the market, you don’t need to pay money for signals and pieces of advice.
Bio: I’m Vikram Ramakrishnan, 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.
Bio: Vyom Mahadevia, Crypto Trader at Cindicator
Vyom Mahadevia’s view on tip on how to estimate trading recommendations:
There are two main types of trading crypto trading signals out there:
1) Signals based on technical analysis
2) Signals based on detailed fundamental 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 types of signals might work in a bull market where everything is pumping, but it is very unlikely to work out in a bear market like the one we are experiencing right now.
- Medium-term signals:
These types of trading signals are usually accompanied by a chart with some form of TA on it. To my knowledge none of the crypto trading signal providers do long-term forecasts. It’s either really short-term or it’s a short/medium-term forecast. In this type of scenario where the signal is complemented by their analysis then I would recommend traders first 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 because 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 research
This is something that is more useful if the signal provider conducts legitimate research on a particular coin. There are so many coins out there and there are new ones that are coming out all the time so if you get detailed research reports on a particular coin then it saves you the trouble of having to spend hours researching it.
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 but it does help to weed out coins that aren’t worth spending too much time on.
Bio: Henry is 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 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 ended 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 signal providers to lure you into their scheme – of course, they are the only ones that 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 Bittrex 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, 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 it is legit.
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. 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.
Apart from the trading platform, this post contains only crypto trading providers that operate on a chat platform called Telegram. This paragraph shall clear things up, for those that are new to the concept of the app and want to know how to join trading signal providers 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 in a chat room), you can create telegram channels. These feed you with pieces of information like used for the signal provider telegram channels in this post.
How to 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 you once you signed 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 signed up, which we encourage you to do. Often you can gather valuable contacts or find additional information, as well as direct support. While Discord in comparison 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 cryptocurrency telegram signal provider for your needs. There are hundreds of thousands of channels out there, which makes it hard to find the right crypto trading telegram group for you. While many of them are a scam, 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 hold until targets are reached. You will have excellent chances to make a decent profit with these signal providers.
Always remember: If BTC runs or drops, no signal provider 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
In some cases, it is better to hold back with trading signals and observe. Please note that we continually update this post with providers. We remove and add providers per their performance and behavior to their customers. Our goal is to show off the best crypto trading signals and especially altcoin trading signals and make them accessible for you, though the provider market is very dynamic. If we see the performance of crypto trading signals dropping, we might remove signal providers anytime.
This article is for educational purposes only. We are no financial advisors. The information provided from Smart Options is for informational purposes only. It should not be considered legal or financial advice. You should consult with a financial advisor or other professional to find out what may be best for your individual needs and risk tolerance.
Please do your own research and never let anyone trade your account for you. We do not support or advertise Fund Management in any kind of manner. We solely review signal providers, their work/analysis/provided education. Please read this disclaimer and leave the website if you disagree with it.