Trading signals are messages to traders, mostly beginners, about profitable entry points to the market and about when it is necessary to exit the market in order not to incur losses. It is delivered in real-time. The scheme of working with them is simple: a trader or investor keeps the channel open and goes about their business, and as soon as the analyst determines that it is profitable to open an order and buy cryptocurrency, it reports this (gives a signal), and the trader receives the signal and follows the recommendations.
The trading signals supplier is a more experienced trader, a crypto-investor, or a group of people who analyze the market and determine profitable trading strategies. They choose entry and exit points from the market based on them, trade successfully, and simultaneously provide the same information to less experienced people — for money or free of charge.
Some trading signal providers don't trade themselves because, according to them, they use other strategies for making money on the crypto market that is incompatible with trading. Nevertheless, the market is analyzed, and trading signals are provided to those who need them. Of course, the providers of trading signals don't assume any obligations. It is always stipulated that the signal for a beginner is not a direct guide to action and the investor bears responsibility for any purchase and sale operations. They may follow all the signals, only some of them, or they may not follow them and act with them as they want.
Trading Signals in the Cryptocurrency Market
Trading signals are usually provided in a dedicated channel — in chats, instant messengers, social media, or other resources. Channels are of three types, depending on the conditions of analysts:
- Open. Signals are published in the public domain. Anyone can see them, and they are free.
- Conditionally open. Anyone who wants to see the signals will need to register or perform another formal action to gain access. They are free with very rare exceptions (the exception is when you need to send a message or something like that, but basically, this is an outright scam that has nothing to do with trading and is close).
- Closed. You need to pay a subscription to gain access. A subscription can be unlimited, or it can be monthly, three-monthly, annual, etc. Its cost varies greatly: it can be $50, and maybe $250. This price difference is explained by the difference in competence, the complexity of the analysis carried out, and the number of services provided.
New channels appear frequently. This event is announced on cryptocurrency forums, social media, and instant messengers. Many sites collect lists of Altcoin signals of all three varieties, describe in detail the conditions of each and indicate the average daily profitability that the channel provides, the number of subscribers, and the ratio of successful and unsuccessful transactions are displayed on.
How to Choose Channels
As mentioned above, channels that publish trading signals for their subscribers can provide free or paid access to information. Even if you pay a certain amount for access, you shouldn't blindly trust them. To protect yourself from scammers, you need to follow simple recommendations:
- Always be careful about channel selection. Of course, there are some good ones, but they are not easy to find.
- Before subscribing to a channel, watch the experts who give signals in real-time. Don't let them decide what to do with your assets if there is any doubt or distrust.
- Even when choosing a reliable channel in all respects, don't be too lazy to check information about it. Always analyze charts on your own and control token prices. If you don't like something, don't do something rash.
Be very wary of channels that zealously encourage you to buy coins from one place or another. You should never trust crypto signals blindly and never make purchase decisions purely from signals. It is your money that you're investing, and you should do your own research before trading.
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