Crypto signal providers are now in their hundreds – potentially more. The idea is simple. By paying the signal provider a fee, you will receive regular trading suggestions. The platform will provide these suggestions through their own analysis, or utilize an automated algorithm that is backed by advanced technical indicators.
Either way, it’s not uncommon for crypto signal providers to make unverifiable claims regarding profit levels. While a number of providers are perfectly credible, many are not. With that being said, how can you separate the wheat from the chaff?
UK-based signal service provider Learn 2 Trade – which offers daily trading suggestions on both cryptocurrencies and forex, has provided some handy tips on how you can stay safe when choosing a new provider.
Explore Where the Signals are Derived From
If providing profitable crypto or forex signals was that easy, we would all be doing it. Unfortunately, the trading suggestions are only as good as the source. As such, your first port of call should be to ascertain how the signal provider actually yields its trading suggestions. This is typically from one of two sources – either through manual analysis or through automated technologies.
Regarding the former, there is no issue per-say if the signal provider bases their trading suggestions on human analysis, especially if this is provided by a seasoned investor with years of experience in buying and selling digital currencies. The only caveat to this is that human analysts are limited in the number of crypto pairs that they can research.
On the contrary, Learn to Trade notes that providers utilizing automated technologies can analyze dozens of pairs at any given time. As the underlying algorithm is tasked with scanning the crypto markets as per its pre-built conditions, it can achieve this goal 24 hours per day.
What Metrics are Contained Within Each Signal?
Once you’ve assessed how the suggested trades are derived, you then need to explore what information you’ll be privy to within each signal that arrives. This particular step is crucial, as if certain metrics are missing, the signal is virtually worthless.
For example, all of Learn 2 Trade’s crypto signals outline what the automated technology has identified, what currency pair it relates to, and whether the subscriber should place a buy or sell order.
Even more importantly, Learn 2 Trade subscribers will receive the required entry price that the order should be executed at, as well as a suggested stop-loss trigger. Members also receive a suggested take-profit price, which ensures that subscribers can lock-in their gains when the trigger is met.
Unfortunately, a lot of crypto signal providers active in the market offer just a fraction of the aforementioned information. While they might notify subscribers of the relevant crypto pair and entry price, such providers often fail to insert the suggested exit points.
How are Crypto Signals Sent?
You then need to assess how you will be receiving your free forex signals. Crucially, the cryptocurrency markets move at an incredible pace, so you’ll want to choose a provider that sends notifications in real-time. This will give you enough time to set up your entry and exit orders, subsequently ensuring that you never miss a profit-making opportunity.
Those with accounts at Learn 2 Trade have the option of receiving instant notifications via Telegram, email, or RSS feed. These crypto signals are distributed as soon as the underlying algorithm spots a particular trend, which is imperative.
With that said, some signal providers opt to send trading suggestions in daily batches – typically by email. By the time members get around to scanning through the signals, the opportunity has often passed.
Does the Provider Offer a Trial or Money-Back Guarantee?
One of the most important metrics that you need to look out for when choosing a new crypto signal provider is whether or not the site offers a trial of some sort.
This might be in the form of a 7-day trial where you can test the signals out prior to making a financial commitment. Alternatively, platforms like Learn 2 Trade offer new members a 30-day money-back guarantee – no questions asked.
Either way, this allows you to assess the accuracy of the trading suggestions that you receive during your trial period. Upon receiving each signal, you can either place orders through ultra-low stakes, or simply refer to a demo account. At the end of your trial, whether or not you continue with your subscription will be determined by the results of the signals.
In summary, it comes as no surprise to learn that crypto signals are becoming more and more sought after by retail traders. This not only includes novice crypto traders, but also traders with a wealth of experience in the industry.
However, it’s crucial that you spend the required time to research a signal provider prior to parting with your money. By following the tips outlined in this guide by Learn 2 Trade, you can ensure that you only use credible crypto signal providers.