If you are looking for an easy way to start trading cryptocurrencies, you may come across groups of Cryptocurrency Signals. But what is a group of cryptosignals and how does it work? More importantly, should you trust them with your own money?
What are groups of cryptosignals?
Crypto signal groups are online communities founded by cryptocurrency traders who share information about the market, their trades, cryptocurrencies and more. You can usually find crypto signal groups on popular social media platforms like Discord, Telegram, WhatsApp or Twitter.
The idea of a group of cryptosignals is quite simple. As a member, you will be notified of the best time to buy and sell cryptocurrencies. Signal groups can also tell you about exciting new projects so you can get involved as soon as they’re launched.
But are all crypto groups trustworthy?
5 Reasons Why Crypto Signal Groups Are Not Trustworthy
Ideally, all cryptocurrency groups provide reliable and accurate signals, allowing their members to make impressive profits. But this is not always the case, because you should not trust groups of cryptosignals.
1. You won’t learn anything about cryptocurrency trading
If you are looking for a group of crypto signals to join, chances are you are new to trading. This may not be the best solution if you are looking for a way to learn how to trade cryptocurrencies.
Most groups, especially those you can join for free, provide little or no information about trading. The administration simply publishes a message telling you which token you need to buy and when to buy it. And in most cases, you don’t have enough time to explore the project on your own.
Of course, some groups give detailed explanations of the following transactions, but this is an exception. And these groups are usually not free.
2. The crypto “signals” are probably copied from another source.
The truth is that you may not be the only newcomer to this group. If the admin keeps posting trading signals without giving reasons, these signals may have been copied somewhere else.
Many traders post their trades online, so it won’t be hard for group admins to find the next “signal”. They may do this to assert their authority if they are not competent enough. Then, if their “signals” stand the test of time, they can move from a free trading group to a paid trading group.
3. It can be expensive
As we already mentioned, there are some groups of cryptosignals that you can join for free, but don’t expect too much. Joining a paid group can be expensive as you can pay hundreds of dollars per month.
Even if you pay dearly, your transactions are not risk free. You can ruin yourself this way, especially if you mindlessly follow every trading signal.
4. It could be a scam
The cryptocurrency market has grown exponentially over the past few years, as has the number of scammers. If someone creates a crypto token for the sole purpose of taking their crypto investors out of the game, they must sell the token to attract investors.
Thus, they can create one or more groups of crypto-signals to find new buyers for their coin, which will soon be worth nothing.
5. The group assumes no responsibility
The more members in the group, the more successful it is. It happens that administrators exaggerate the results in order to increase their audience. If you show the difference between their statements and reality, you risk getting banned quickly.
If admins are the only ones who can post to a group, that’s a clear sign that they don’t want anyone to challenge their expertise and authority. There is also nothing to prevent moderators from abandoning or deleting a group as soon as they earn enough money.
What to do instead of joining a group of cryptosignals?
If a group of crypto signals seems suspicious to you, you better trust your instincts. In this case, you should look for alternatives to understand how the market works and learn best practices.
Luckily, you can gather useful information by avoiding unreliable groups of crypto signals.
1. Go to social forums
There are many social forums dedicated to cryptocurrencies and you can easily find them on Reddit, Twitter, Telegram, etc. In these forums you can learn about trading, market sentiment, new crypto projects, mining and everything related to cryptocurrencies.
As you might expect, many forums are filled with outdated information, hopeless crypto projects, or scammers. However, there are many crypto forums that share reliable information.
2. Learn from a reputable platform
When it comes to cryptocurrencies, many people and websites are promoting their knowledge of cryptocurrencies. So it can be difficult to choose someone to learn from.
You might be best off learning from a well-known crypto platform like Binance or Coinbase. And the best part is that these platforms will pay you for your education in cryptocurrency.
3. Copy Experienced Traders
In addition to teaching cryptography, some platforms allow you to copy other people’s trades. This way you can check how experienced traders manage their assets and see the results.
This is a good way to start trading if you don’t have the time or experience. However, you must remember that someone else is making the decisions for you.
4. Start With Fake Transactions
Once you have developed your trading system, it is best to test it out before investing. Test your strategy with a risk-free cryptocurrency trading simulator so you don’t lose a dime if your plans don’t pan out.
Once you become profitable and feel confident enough, you can start investing real money in cryptocurrency trading.
Should Cryptocurrency Signal Groups Be Trusted?
When it comes to groups of crypto signals, make sure it doesn’t sound too good to be true. If admins don’t reveal their identities, it’s best to stay away.
However, you need to keep learning because the more you know about cryptocurrencies, the more comfortable you will feel when trading. Luckily, there are many learning tools such as YouTube channels, forums, or podcasts.
The information on this website does not constitute financial, investment or trading advice and should not be relied upon as such. MakeUseOf does not provide trading or investment advice and does not recommend buying or selling any particular cryptocurrency. You should always exercise due diligence and consult a licensed financial advisor for investment advice.