Nowadays, it’s easier than ever to trade cryptocurrencies. You are exposed to them on mainstream trading apps, even within mobile banking apps.
And besides mainstream platforms, you have many centralized cryptocurrency exchanges, decentralized exchanges, and liquidity providing platforms to back them up.
The cryptocurrency trading world is clearly superior in 2021 compared to the 2017 level.
But the hurdle that prevents many internet users from trying cryptocurrency trading is not accessibility anymore.
It’s knowing what to do and when to do it.
And here is where crypto signal providers come in.
Five tips for choosing a crypto signal providers
It’s no surprise, but not every individual that claims to give out crypto signals can be trusted. Not even if he offers information for free. That’s because bad actors may target novice traders to “advice” them to act in ways that can hurt their portfolios.
That’s why you have to pay attention to a few things before you subscribe to a trader’s crypto signals.
1. They communicate signals through Telegram
These days, we have quite a few communication apps and platforms. But the fact that a trade signals provider uses Telegram to disseminate information can be a good pointer that a said trader is used to the cryptocurrency world.
It’s a known fact that Telegram is heavily used within the cryptocurrency world by projects and traders.
And it’s better if the signals provider communicates through Telegram so you can see their message faster and act timely.
Emails get lost, or you might just not read them. Custom websites may be troublesome because you constantly have to check them. But a messaging app is easier to use for fast communication.
2. They offer a free plan or a free trial
Free things rarely deliver good results. And that’s the case with crypto trade signals providers as well.
But there is an exception. Look for providers that offer a way to test the quality of their signals before paying a subscription.
Experienced crypto traders that are sure of the signals they provide will allow you to test their service before getting you on board as a paying user.
3. They have a high Succes Rate
To be worth even the effort to join a free signals group, a provider needs at least to commit to a high success rate. We’re not talking 100%. It’s impossible to be 100% right in the crypto market.
But an honorable 82% success rate is just what you need.
4. They offer technical analysis to back their signals
A signal without a technical analysis to back up the advice is just an opinion. It’s crucial for the crypto signals provider you choose to offer technical analysis and data that objectively shows the accuracy of their suggestion.
The crypto world may act unexpectedly at times, but acting knowingly never hurts and shows that the signals provider is actually putting work into it.
5. They use, recommend, and explain more than one type of trades
A good crypto signals provider will help you with more than just market execution. They will provide info on swing trades, scalp, and use different types of trades like buy stops, sell stops, and buy limits.
Besides that, the signals provider should also specify what Entry, Take Profit & Stop Loss to set for your orders.