Want to boost your crypto trading game? Explore Benzinga’s recommendations for the best crypto signal providers this year and make informed investment decisions.
If you are interested in crypto trading but don’t know where to start, using trading signals can be a great way to learn the ropes and get acquainted with the trading process. Additionally, in 2024, there are tons of platforms to receive signals and fine-tune your trading strategy to potentially profit. Let’s take a look at some of the top trading signal providers for 2024.
What Are Crypto Trading Signals?
There are three main crypto signals that traders use: trading bots, copying trades from experienced investors and technical indicators. Trading bots are programs that are coded to read the price of cryptocurrencies and automatically trade the crypto based on parameters set in the code. For instance, a trading bot can have codes that tell it to buy when the price drops below a certain level and sell when the price rises above a certain level.
Copying the trades of experienced investors is also a crypto signal. An experienced trader will notify a group of investors, telling them the trades they are making. The investors in the group can then use this information and make their own trades accordingly. The members of the group rely on the expertise of the trader giving the trade ideas.
Last, you can read technical indicators of cryptocurrencies to inform your trades. Look at indicators like the moving average (MA), relative strength index (RSI) and average directional index (ADX). Reading these indicators can provide you with insight into the price movements of a cryptocurrency. While there are many different types of indicators, trading bots, copying trades and technical indicators are the most used signals.
Best Cryptocurrency Signal Apps
Many apps and groups provide crypto signals. However, not all of them are good. Here are some of the better apps that can provide helpful signals to investors and improve their trading strategy.
eToro
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eToro offers a unique feature called CopyTrader. It allows traders on the app to find featured traders and information about their returns and past trades. Once you have funded your eToro account, it is easy to begin looking for traders to copy.
You can choose from many traders with different risk tolerances, so make sure you select a trader you’re comfortable with. With just the click of a button, you can begin to copy their trades. The process automatically copies trades of the selected featured investor. The service is free and a great way for beginners to study the trades of more experienced investors. Traders who are copied receive payment for their services as part of the Popular Investor Program.
3Commas
3Commas is a powerful tool that allows you to aggregate and trade with multiple crypto brokerages, such as Coinbase and Kraken. The site gets the data of your portfolios using an application programming interface (API). This feature allows you to view and trade with all your portfolios in one place.
The site offers more than 3,000 trading bots, each with its own parameters and strategies. The site is easy to use and there are bots to suit the needs of every investor.
Altrady
Altrady is a program that allows you to automate your trades with its smart trading feature. The program tracks common and advanced indicators and automatically makes trades. You can customize your risk tolerance and the types of trades you want to execute. The service makes automatic trades under guidelines set by users. It also has scanners that can provide quick information regarding sudden changes in the market.
Using the program is simple. Download the software, connect an exchange and start the smart trader. The smart trader is a great tool to understand how coding and programs can assist traders.
Best Cryptocurrency Signals Telegram Groups
1. Today Trader
Today Trader takes a look at cryptocurrencies that could potentially blow up in the future. The trader hopes to find cryptocurrencies before they take off, using a mix of psychological and technical analysis.
2. Crypto Whale Pumps
Crypto Whale Pumps aims to provide investors with knowledge of the latest crypto presales, which are when investors buy a token at launch. It also provide signals on trades throughout the day.
3. Binance Killers
If you trade on Binance, the signal group called Binance Killers could be a good option for you. The group specializes in tokens that trade on Binance, offering free and subscription-based signals for traders throughout the day.
4. Wolf of Trading
Designed for beginner traders, Wolf of Trading provides a mix of signals, market commentary and a space for members to discuss ideas. It allows members to test signals with paper trading before committing to actually investing their own money.
5. Crypto Bull
The Crypto Bull group takes a slightly more analytical approach to providing signals. It uses a variety of indicators within the crypto market (Bitcoin hash rates) and outside of crypto (the U.S. dollar) to create signals for its members.
6. WOLFX Signals
WOLFX Signals provides users with signals for short-term trades, usually taking place within an hour or day. The free group can receive 1-2 signals per day, while the paid group can get up to 4 per day. The signals also come with risk management levels and reasonings behind the trade.
7. NFT Signals
While the other signals focus on cryptocurrencies, NFT Signals looks at trading opportunities in the NFT sector. The service ranges from freshly minted projects to potentially undervalued collections and could be a good way to diversify the signals that you receive.
What Are the Pros and Cons of Using Crypto Signals?
Pros
- Learn about markets: Trading signals can provide a great opportunity to learn about markets. By seeing the trades that others make, you can learn the important factors that others consider when making trades and create your own strategy.
- Save time: Following markets closely takes lots of time and not everyone is able to do so. By using signals, others can follow the market for you, while you can benefit from their expertise.
- Diversification: Signals can provide an opportunity to diversify your risk by exposing you to new assets and trading strategies that you do not currently have in your portfolio.
- Remove emotional element: With trading bots, you can remove the emotional element of trading. This can ultimately result in better performance in the long run, as the strategy is executed exactly how it was intended and without human interference.
Cons
- Cost: While some signals are free, most cost money. This is usually in the form of a monthly subscription. The cost can vary depending on the quality and amount of signals as well.
- Delayed information: Some signals come out moments after the trade was meant to be opened, which can lead to non-optimal entry and exit from trades and smaller profits/bigger losses.
- Poor signals: A huge risk of using signals is that the signals are not profitable. This is a real risk, as no human or bot can consistently beat the market. This is especially true with crypto, as it is volatile and unpredictable.
- Market manipulation: Some signals are used for the gain of the person who sends out the signals. This is usually in the form of a pump-and-dump, in which the group will signal to buy an asset they already own to send the price higher before they exit for a profit.
Generating Passive Income with Crypto Trading Bots
Crypto trading bots can provide a way to generate passive income without having to constantly monitor markets and can give new traders insight into what to look for in a trade and how to time the market. However, not all signals are profitable, and some can cause you to lose money. It is important to consider your own risk tolerance as well as what you are looking to get out of the signals before choosing and beginning trading.
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About Caden Pok
Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.