What are cryptocurrency signals and which ones are the best?
Bogdan LashchenkoIntroduction
With the advent of the digital asset world, people weren't too concerned about buying or trading assets. The more widespread cryptocurrencies became and the more stories about acquiring wealth in an easy way emerged, the more people wanted to start joining the community of digital asset owners and traders.
However, as we know, all cryptocurrency enthusiasts fall into two global categories: those who make money from it and those who lose out on it. Obviously, this is how the market works and if there was no second category, there would be nowhere for the first category to take the money they earn.
So, more and more people want to learn how to make deals properly, whether they are day traders or long-term investors. The latter are less concerned, because even if you buy BTC at $69,000, you can still make a profit after waiting 2-3 years. But traders who are not ready to wait long want to join the army of people making successful trades. It is for such people that automated ways to follow the market began to appear. They are called screeners.
Earlier we told you what screeners are. This time, let's talk in more detail about cryptocurrency signals, which are mostly one of the trends in the field of cryptocurrency screeners.
What are crypto signals?
Cryptocurrency signals are events that give traders and investors an idea of exactly what is happening in the market right now, or to be even more precise, they give signals to enter a position.
When it comes to day-trading or swing trading, these signals show that a particular crypto-asset may be heading up in the near future, thereby signalling to traders that it is worth opening a long trade. They can also signal that the digital asset may lose value in the future. In such a case, investors can get rid of their savings in order not to lose money, while swing traders can open a short trade and profit from the downward movement of the coin.
In addition, some screeners are able to give signals to crypto-enthusiasts about certain news, which in turn can lead to a rise or fall in price. Screeners can both scan news and take it from reputable sources and show market and public sentiment towards a particular digital asset, as well as referring to technical analyses. It is through the use of technical analysis that some screeners are able to provide strong buy or sell signals for assets.
This is achieved by analyzing the many factors that influence the rise or fall in price. Hence the need to use such signals. Of course professional traders, who are among a few successful traders on the market, know when to enter and exit a position because they have a strategy that has been tested over the years. But what should people who do not have this knowledge, but want to make good trades?
In that case, firstly they need to build up their knowledge about cryptocurrencies, and secondly they can of course use cryptoscriners, which use technical analysis tools as analysis. They will not give 100% profit, but if they find good signals, but if they stick to risk management and money management, then they can be successful. That's assuming a good cryptoscriner.
Beware of "crypto-experts" influencers who share "secret 100% working strategies and signals" on social networks. Such pseudo-experts can give 10+ or more signals a day that are not backed up by absolutely nothing and it will not be any different from random trading. It should be understood that they make money just from "subscribers" who buy access to "miracle signals". It is better to use verified sites that actually use technical analysis to obtain data.
So what kind of screeners can be used as crypto-signals? We'll tell you about that next.
DYOR.net
DYOR.net is a great cryptocurrency screener with a great bias towards technical analysis. We talked about it in an earlier article. This time we'll say it again and say that this resource will not only be a great inspiration for traders and investors looking for good market entry opportunities, but also a good source for tracking the situation through technical tools.
The best thing about DYOR.net is that it is free and it has a very well designed interface. Absolutely no one will have any difficulty understanding it.
Clicking on the Trend Scanner tab will open a menu with all the digital assets available and show the situation at different timeframes. There is a choice of 15 minute timeframe, 1 hour, 4 hour, 1 day and 3 day timeframes. In each of these, the toolkit will show a number of factors that suggest the token is likely to go up or down. Let's take the TRX/USDT pair as an example. on the 1-day timeframe we can see that all the technical analysis facts tell us that the coin will go up in the near future.
From the screenshot, we can see that the following facts speak in favor of growth:
- ADX>25 (Average Directional Index is more than 25)
- MA7>MA25>MA99 (7-day Moving Average is higher than the one shown at 25 and 99 days respectively)
- Supertrend is long (Global trend is moving up)
- Price>MA7 (Price is higher than 7-day moving average)
- Price>Tenkan Sen (Price is higher than the Ishimoku indicator)
- MACD>0 (Convergence/Divergence of moving averages above 0)
- and others
According to the technical analysis, so far, there are no factors that would indicate the upcoming decline of the coin, which is quite important.
All this tells us that the system, which automatically performs the analysis, shows a good signal to buy this coin in the medium term and a good entry into long positions. So we have seen how a free resource can give good buy signals. Again it is worth noting that if technical analysis tells us that the coin is likely to go up, it does not guarantee this outcome, but the probability of such an event is quite high.
That's why DYOR.net is a great resource with cryptosignals content for those looking for such interesting solutions. Nevertheless, it needs to be monitored manually and watch the market situation. If you subscribe to the premium version, you can activate to receive notifications of such good entry points, but there is not much need for that as the functionality is good enough in the free version as well.
AltSignals
This resource is also quite interesting. Unlike DYOR.net and other similar scanners and signal services, there is no free subscription here, while VIP access will cost $120 per month, $420 for 3 months and $1145 for a lifetime subscription.
Unlike many cryptosignals, AltSignals does not offer many daily buy or sell signals, but several dozen per month. AltSignals has seen a tendency to move from quantity to quality signals, which can be seen in the history of their signals. While in June 2022 they used to give 120+ signals, there were months after that when the amount of signals did not exceed 40, 30 and even 20 a month. You can check the entire history in the "Results" tab. It's also noteworthy that they don't hide the negative months.
Rating aggregator Trustpilot marked 4.9 out of a possible 5, and the score is based on more than 500 reviews. The authors of the 1-star reviews all claim that AltSignals helped them lose their deposit in 1 day, a few hours and a few minutes, indicating that they neglected money management and risk management.
We repeatedly say that these two components are vital factors in decision making and successful trading, which can be either day trading or swing trading.
Notably, payment is not only accepted by Visa and Mastercard, but also in the form of digital assets. Another point in favour of AltSignals is that they do not give signals for futures trades exceeding 10x leverage. These are mostly 3x-5x leveraged trades. The company itself is based in Scotland. Given how cryptocurrencies are treated in the UK and how strict the laws are there, the administrators of the project should not engage in shady activities.
If you decide to buy trading signals from AltSignals, you will get an email and a link with instructions on what to do next after you pay. If you are not even particularly knowledgeable in the world of crypto-trading, you will not be left to your own devices, as the administration has left instructions for those who have not made transactions before and tells about the importance of risk management and money management and stop-losses. The whole process of receiving signals will be done in one of the world's most popular messenger, Telegram.
AltSignals will suit those users who have already decided they want to part with a certain amount of money in order to try trading. It is useless to say how effective these or that signals are until you have tried them yourself.
Conclusion
We have mentioned only 2 services with signals, as most of them either give free advices that cannot be considered as a reliable source of information or invite you to sign up for a low price VIP-service, which is also questionable. If you want to try signals for free, DYOR.net is excellent. If you are ready to give your hard-earned money in an attempt to get quality signals, you can try AltSignals, which has a good base of loyal customers.
In any case, do not forget about risk management and money management. We talk about it very often because it is the key to successful trading. If you want to join the army of people who are making money in the market and not becoming whale fodder, you cannot avoid these rules.
Bogdan Lashchenko – content manager at EgamersWorld.Bogdan has been working at EGamersWorld since 2023. Joining the company, he began fillin the site with information, news and events.