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Cryptocurrency for Beginners

Do crypto trade signals work in 2024? Not for everyone

2 min read
If the signal is to short, the entry was right, you can still miss the trade because you misplaced your stop loss.

Do crypto trade signals work?

Crypto trade signals work extremely well when the signals align with the cryptocurrency trader’s goal and strategy.

Signals are an interesting time saving option for experienced traders who are looking to expand their current portfolio but don’t have time to do additional analysis.

On the other hand, the signals will not work if the trader does not already working trading strategy in place.

Crypto trading signals will also not work for those who are trying to avoid learning technical analysis.

 

Do crypto trade signals actually work?

Most crypto trade signals don’t work for beginner traders because the signals do not match the traders skill level and strategy.

So if you are a beginner trader and are lucky enough to find a signal channel promising a great ROI, you are likely not going to make profit immediately because the trader who is providing the signals have been back testing the strategy for years.

This means that the signal provider not only knows how to set his leverage but also how to set up his stop loss as well as when to get out.

 

Signals for high leverage scalper who does echnical Analysis on a 15 min timeframe won’t work for a beginner position trader.

However, swing trading signals on alts work well for scalpers, since they master.

 

For example:

If the signal is to short, the entry was right, you can still miss the trade because you misplaced your stop loss.

 

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What are crypto trading signals exactly?

Trading signals are trade ideas which experience traders share through paid or free groups.

It is extremely rare to find good signals in free groups because a good trader will usually find the process to boring to do it for free.

 

What are “Good” Crypto signals?

Someone who DOES NOT KNOW what they are doing will tell you to check ROI.

Ironically you have to be wary of those who say signals are good and equally wary of those who say they are bad

  • check the trading skills of the reviewer
  • size of the signal group
  •  the win rate which the person who back tested it is claiming
  • That the strategy aligns with yours

You will obviously make less than the person giving the signal because they back tested it for years

 

Types of crypto trading signals

  • High leverage
  • Low leverage
  • High Market Caps
  • Low Market Caps
  • Position trading (spot)

 

How to recognize fake signals

Youtubers and influencers are guilty of shilling tokens.

In other words, if an influencer or group has a sufficiently large following, they can easily influence the price of the token.

The problem is that these influence use their followings as exit liquidity.

This means they encourage people to buy, long or short a token and to the opposite.

 

The news

You’ve probably heard the saying that if it’s in the news it’s too late.

What you have to also bear in mind is that news and media outlets make money off of eyeballs and clicks.

Popular media may create a bullish article for bulls and bearish article for bears.

Pro-tip : Use onchain analysis to get accurate measurement on market sentiment

What’s great about on chain analysis is that, it is like a crystal ball with a front row seat in market activity. This means you can potentially be 24 hours ahead of the news.

 

To Conclude

Not not all signals are scams,

and even if the signal is good,

But you suck, then you are going to lose money.

Also, even if you’re  a decent trader you STILL might lose money IF you do not back test the signals first.

 

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