How to Read Crypto Trading Signals

There’s a lot of excitement surrounding crypto right now, and that’s got a whole lot of people thinking about making their first purchase or expanding their portfolio. Buying into crypto markets can indeed be exciting, but it can also feel overwhelming for those new to crypto or to those with limited knowledge. It’s understandable since we’re putting our hard earned money on the line every time we make a trade. For this reason, many people turn to crypto trading signals to help better inform their decisions. 

Crypto trading signals let us know when the markets are ripe for change, and they can help us rack up big profits and avoid taking substantial losses if we know how to use them. Luckily, if we don’t know much about trading signals, that’s no longer a problem. We’ve got fantastic software options that break it all down for us. Let’s take a look at what crypto trading signals are and how to use them to complement your investment strategy.

What are Crypto Trading Signals?

When it comes to your personal trading strategy, signals should play an important part. You can’t always be on top of everything going on in the market, so getting timely information from those who are on top of it can ensure you make the right moves at the right time.

If you’re just learning how to read and utilize crypto trading signals, you may not yet fully understand what they are or how they are used to inform trading decisions. Put very simply, crypto trading signals are triggers that alert you when to buy or sell your cryptocurrency, based upon a variety of indicators. There are two types of trading signals, and they are defined by how the signal was generated.

Automated Signals

Automated signals, or algo trading signals, are generated by an algorithm that reads the market trends and alerts the trader to conditions that indicate it may be a good time to buy or sell an investment or security. They very often involve technical analysis, which is the process of using the charts themselves to inform trading decisions. 

Technical analysts look for patterns in the charts that have a history of indicating either a bearish or bullish continuation or reversal. If the pattern has a history of leading to big gains, it may be time to buy. On the other hand, if the pattern has a history of preceding a large dip, it may signal a great time to sell. The algorithm works as a virtual analyst, and alerts you when it predicts either bullish or bearish breakouts.

Manual Signals

Computer algorithms can’t always gather relevant information as quickly as humans can. That’s why we need another type of trading signal to bridge that particular gap. Manual trading signals are generated by an individual rather than a computer algorithm. 

The individuals that generate manual trading signals are usually an analyst, a trader, or a group of them with extensive experience and a proven track record of success. 

They may also be industry insiders who have thorough knowledge of a company’s strength based on fundamental analysis. Fundamental analysis involves combing through a company’s financial statements, intellectual property, leadership, and any other traditional measure of an investment’s intrinsic value.

At their base, trading signals are a fairly simple concept, but the most important part of reading crypto trading signals may be understanding how and when to act upon them. Luckily, if you find a great provider, they can take a good portion of that work off your hands.

Where to Find Crypto Trading Signals

If you’re going to utilize trading signals, you’ve got to know where to get them. There are a number of different communities and services that will alert you to the signals you’re after, and knowing which ones are worth your time will help protect your investments. Who will you trust to help you make decisions with your money? Let’s look at some popular ways people access the crypto trading signals that allow them to make informed decisions at the right times.

Trading Platforms and Signal Providers

Not everyone has the time or energy to learn how to read crypto trading signals. It’s a complex topic, and it can be invaluable to get some help with it. Trading software in the twenty-first century is incredibly adept at combing through technical and fundamental data and can alert you to triggers before you’ve even had your morning coffee—no need to read and interpret the signals yourself.

In addition to providing crypto signals, most reputable trading signals providers also provide everything from ETF trading signals to forex swing trading signals. No matter what your investment strategy looks like, you’ll be able to get all your signals in one place. You’ll even be able to get your crypto and forex trading signal alerts right on your phone, allowing you to instantly make the moves that make you money.

Discord Trading Signals

A rapidly growing segment of the trading community has turned to Discord for their trading signals. Discord is a social media platform that allows users to communicate via voice calls, video calls, text messaging, and media and file sharing. They can communicate via private chats or online communities called “servers.” 

The good and the bad is that servers have been popping up left and right surrounding crypto trading signals. Some are better than others and finding a community that you connect with is going to be the ticket for getting signals you can trust. If they’ve got a good track record of making timely transactions, they can offer some great advice.

trading strategy signals

Copy Trading

There is a practice popular with many traders known as copy trading. It is possible to tie your trades to another trader, meaning you make the same moves with your investment that they do. It can be a tempting prospect for hands-off traders, but there are certain risks that come along with giving up control of the trades you make.

Allowing your moves to mirror theirs means you may make trades you otherwise wouldn’t. There is always the chance that you lose money based on the transactions that trigger your own. Be sure you’re aware of that chance and are comfortable with it before engaging in copy trading.

Consider the Source

One of the most commonly asked questions about trading signals is, are trading signals reliable? It’s a simple question with a complex answer. Basically, a trading signal is only as reliable as the source. 

As you begin your journey into the world of crypto trading signals, you’ll come across both free and paid services. One isn’t necessarily better than the other. Here’s why.

Free Services

If you’re getting free trading signals from an unreliable source, basing decisions on them could prove to be a bad idea. Since anyone can post on forums and chat rooms, there’s no guarantee that the person or algorithm generating your signals has any experience in trading successfully. Be sure to take any signals from free sources with a grain of salt. If you see a track record of success, the source may know what they’re talking about, and following their advice could net you some nice profits.

Paid Services

Price doesn’t always dictate quality, and navigating the world of paid services can be just as tricky. You can pay large amounts for services that promise huge returns and never see them. Some services make their money through paid subscriptions to their personal advice rather than signals created through solid algorithms or experienced analysts. 

If you’re going to use a paid service, make sure to go with one that’s run by professional analysts or works with solid algorithms. It’s also great to go with one that has enough features and resources to fully educate you on the decisions you’re making. Services that offer a wide range of features can help you make improvements in all aspects of the trades you make.

Selecting a Crypto Trading Signals Provider

There are a number of factors to consider when choosing a provider for your crypto trading signals, and it will all come down to a combination of price and expertise in the end. 

Are trading signals worth it? If you’ve got a good source, crypto trading signals can help round out your trading strategy and possibly make you some good money. 

You can even use your signal provider to help you in understanding Forex signals or crypto trading signals if you choose one with a wide range of features. Whatever you’re looking to accomplish with your investments, Chartprime has the tools to help you make the decisions that make your money grow.

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