How can you spot an authentic crypto signals provider? What are the factors to consider when comparing them? In this article, we will look at all the criteria to be considered to make sure you choose the right crypto signal provider.
Study the provider’s reputation
Just like when choosing an online broker, reputation is everything when choosing a signals provider.
So how do you know if a provider has a good reputation and is worth checking out? Your first instinct should be to do a Google search. Look for answers to questions such as: Is the signal provider subject to a lot of criticism or praise? What are the ratings for these signals on the major comparison sites?
Consider the markets covered
Some crypto signal providers do not limit themselves to one market, but there are many that specialize in either stock, forex … Therefore, it is important to choose crypto signals that relate to your market of choice.
Look at the performance history of the provider.
All reputable crypto signal providers will provide you with a performance record detailing their past trades.
This is a great way to get an idea of key factors, such as
- Profits generated
- Risk taking
Look at the provider’s time horizon
As a rule, crypto signal providers specialize in a time horizon (short term, medium term, long term):
- Very short-term signals are called scalping signals.
- Best Crypto signalsfor positions lasting a few hours or a day are called day-trading signals.
- Beyond that, they are called swing crypto signals.
The important thing to consider here is your availability and your appetite for risk. With scalping signals, you will have to accept a lot of risks, and you have to be available to follow several signals a day.
Day-trading signals are often sent in the morning at a fixed time, and can easily be replicated before you turn to your daily activities. Swing trading signals, which are generally fewer in number, are even easier to follow.
The assumed rate of gain
One of the most common misconceptions in the cryptocurrency industry is that “the higher the win rate, the better the trading strategy or system”. Indeed, it doesn’t matter if crypto signals are right on 90% of the trades if the 10% of losing trades result in significant losses that offset the gains of the 90% of winning trades.
Furthermore, a high success rate can sometimes mean that the stop-losses of the crypto signals are very wide, and therefore the signals are very risky. In the end, it is better to have signals with many small losses and a few big wins, than signals with multiple small wins, which can be wiped out by one unlucky position.
How to spot a scam from a crypto signals provider?
A lot goes on in this industry, including scammers who will do anything to get you to pay for their business alert services. Here are some tips on how to spot the most common scams:
If a signal provider is showing strange results every month, it’s still a scam. Often, the results they provide are false or they are taking a big risk. It is important to always look at the relationship between results and risk. It is impossible to earn 100% per year without taking excessive risks and sooner or later your account will collapse!
If a crypto signal provider guarantees a certain profit at the end of a period, in most of cases it is a scam. It is just a marketing technique to attract customers. They may promise a refund if you don’t achieve certain results ….., but in reality, you will never get your money back or lose most of it. There are exceptions, but they are very rare. In this case, pay attention to the trader’s track record. If he is as good as he claims to be, believe me, the trader will not bother to collect a few hundred dollars from private clients selling his trading signals.
I have written several articles and books about Bitcoin, Ethereum, Litecoin, Ripple, Monero and other popular cryptocurrencies. My work has been featured on major media outlets such as CNBC, Forbes, The Huffington Post, etc.