Trading signals: your compass in the chaos of the crypto market

See someone make 5x gains in BTC and think, “How did they know when to enter?” The answer: they probably followed a trading signal. But here’s the crucial part: blindly trusting signals is like driving at 125 mph without seeing the road.

What is a signal really?

A signal isn’t magic. It’s simply a recommendation on when to buy or sell an asset. It can come from an algorithm, an analyst with 10 years of experience, or a recurring chart pattern.

The beauty is that it saves you hours analyzing charts. But the risk is that if the analyst or bot is wrong, your wallet suffers too.

The 3 types you need to know

1. Automatic vs. manual signals

• Automatic: A bot scans 1,000 charts per minute and tells you “buy here.” Fast, but emotionless and lacking context.
• Manual: An experienced trader studies news, charts, and data. Slower, but with reasoning behind it.

2. Technical vs. fundamental (the real difference)

Technical signals look at patterns: “ETH broke resistance at $3,700 → buy at $3,800.” They’re quick.

Fundamental signals look at the big picture: “BTC hash rate is rising = the network is stronger = better for the long term.” (Hash rate is the computing power used by miners to process transactions. The higher it is, the faster and more secure the network.)

The best signals combine both: news + chart pattern = more solid entry.

3. For each type of trader

• Spot trading: Buy and hold the actual asset.
• Futures: Trading with leverage, higher risk.
• Scalping: Small profits in minutes, requires precise signals.
• Long-term investing: Signals for holding 6-12 months.

How to tell if a signal is worth it

Not all signals are equal. A good one has these ingredients:

1. Reliable source. Who’s giving it? A proven bot or a random Telegram user?
2. Reasoning behind it. “Buy because yes” = garbage. “Buy because RSI is oversold and there’s support at $X” = okay.
3. Stop-loss and take-profit. If it says “buy” but doesn’t specify where to set the stop, it’s incomplete.
4. Time frame. A signal expires. If a week passes and the price hasn’t moved, it might no longer be valid.

Real examples

BTC futures signal:

• Entry: $99,000
• Target: $102,000
• Stop-loss: $98,500

ETH technical signal:

• Broke resistance at $3,700 → buy at $3,800 with a target of $3,900

The uncomfortable truth

Pros: saves time, learns from experts, improves your odds.

Cons: no signal is 100% foolproof. Blindly following without understanding the reasoning can lead straight to losing money. Beginners make this mistake all the time.

The secret: Signals are a tool, not a cure-all. Use them as a reference, but always do your own homework. Read the news, review charts, understand why the signal says what it does.

Trading isn’t just about following signals. It’s about developing judgment, experience, and knowing when a signal makes sense and when it doesn’t.