What are crypto signals?

Crypto signals are curated trading suggestions that alert traders when to buy or sell a cryptocurrency based on some predetermined analysis. These signals are shared in real-time, oftentimes by professional analysts or algorithms, and typically include critical trade details: the asset, suggested entry price, take-profit (TP) targets, and stop-loss (SL) levels.

Traders may generate these signals manually, or use algorithmic trading bots to automate the process. Manual signals are often informed by a blend of price action, technical indicators (like RSI, MACD, or Fibonacci levels), fundamental analysis (e.g., news events or economic indicators) and sentiment. Automated signals, on the other hand, rely on algorithms that scan the market continuously for optimal entry and exit points. These may even use machine learning models to adapt to market behavior over time.

Signals are typically distributed via platforms like Telegram, Discord, email or proprietary apps.

Here’s an example of what a trading signal might look like and how a trader might make use of it: 

Let’s imagine you subscribe to a crypto signal group. One morning, you receive this signal:

Buy Signal – Ethereum (ETH/USDT)
Entry: $3,200–$3,250
Take-Profit Targets:
• TP1: $3,350
• TP2: $3,450
• TP3: $3,600
Stop-Loss: $3,100
Confidence Level: High (based on RSI breakout and bullish volume)

You log into your Kraken Pro account and place a limit buy order for ETH at $3,220. You also set:

• A stop-loss order at $3,100 (to cap any potential losses)
   
• Take-profit orders at the three TP levels (either as laddered sales or alerts)

Over the next few hours, ETH moves up and hits $3,350 (TP1). You sell a portion of your position and move your stop-loss to breakeven. Later, ETH hits TP2, and you close another chunk for profit.

If ETH never reaches TP3 and reverses, your remaining position is stopped out (closed once it reaches your stop loss level), but you’ve already banked profit from the TP1 and TP2 levels.

Some signals may also include leverage suggestions (for futures trading), market rationale (e.g., trend breakout, RSI divergence), and timeframes.

How quickly traders react to signals is critically important. Crypto markets are extremely volatile, and the value of a signal can degrade quickly. Traders that act upon receiving a signal should ensure that every trade is risk managed, and refrain from ‘chasing’ the market. 

Whether a signal service is profitable or not means nothing if a trader does not follow the signal to the letter. In many cases, it may be more beneficial to let a trade go rather than take on unnecessary risk because you don’t want to miss out. 

Some traders automate signal execution through trading bots connected to exchanges, although this requires extra caution and deeper research.

Signals services come with a host of advantages and disadvantages which should be carefully considered before being used with real money. 

Expert analysis: while some may be rightly dubious of the term ‘expert’, finding the right provider can offer real time insights from traders with a proven track record. This allows you to benefit from their experience and time-tested expertise. 

Time-saving: signals may provide you with a back-tested source of actionable information, allowing you to focus on execution rather than time spent on research or analysis.

Learning tool: by reverse-engineering how the signals are generated, you may be able to analyze the rationale behind them to improve your own trading knowledge, and/or even enhance the strategy overall. 

Risk management: quality signals should have risk-management baked into them with regards to a stop and take profit. Just make sure you correctly calculate the position size for every trade according to your own risk appetite. 

Reduced emotional bias: following structured signals may help mitigate the impact of your own emotions, as trading decisions are taken away from you. Naturally, you still need to follow every signal exactly as instructed which presents a challenge in itself. 

Access to diverse strategies: with so many services on offer, take the time to find a strategy that suits your personality.

No guarantees: even backtested signals can fail or enter periods of extended drawdown (consecutive losses) owing to market volatility or unexpected news.

Over-reliance: depending too much on signals can hinder your own development and sense of autonomy. If you blindly copy signals from another trader, are you really learning how to trade? As the famous saying goes, ‘Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.’

Scams: many services charge exorbitant fees without any track record of profitability, or are just outright scams. Always conduct your own extensive research before parting with any money. 

Cost: premium signals can be expensive, don’t always justify the price and will eat into your bottom line as a trader.

Delayed execution: unless you are using an algorithm which reacts extremely quickly, delayed action on a signal often means entering at a less favorable price which may diminish any edge. Some delays may even render the entire strategy unprofitable.

Human traders who interpret market data manually using technical and fundamental analysis. These providers often offer commentary and educational insight with each signal, and may be popular for traders who want to learn while they trade. Manual analysts can quickly adapt to breaking news or unusual market behavior that bots might overlook.

These rely on pre-programmed strategies and technical indicators to deliver high-frequency signals. Bots are emotionless, fast and generally available 24/7. However, these may lack the nuance of human interpretation and discretion. While efficient, bots can generate false signals in choppy markets or fail to interpret contextual bias.

The following is a list of commonly cited crypto signals providers:

1. Crypto Inner Circle
The premium signal service specializes in Binance futures calls, sending out approximately 1–2 verified trading signals per day. Their Telegram channel boasts around 135,000 subscribers. 

2. The Haven

Dubbed as a ‘...a high-performance community built around live setups and shared learning’, The Haven gives members direct access to a host of well known crypto traders (such as Trader Mayne and Cold Blooded Shiller), who provide a stream of trading setups and 

3. RAVEN Signals Pro
RAVEN Signals Pro provides daily crypto and forex trade setups, claiming to have 88% accuracy. Their Telegram channel, with over 75,000 members, includes transparent performance stats and bot support.

4. Cryptohopper Marketplace
Cryptohopper provides an in-app, decentralized marketplace where users can subscribe to various signal services starting at around $10–$20/month.

A few things to note about these providers and signal providers in general:

• Claims about ‘success rate’ are not irrefutable proof that a service is in fact consistently profitable. Dig deep into any available data to confirm the veracity of any such claims. Ask the provider for more information if necessary. If the signals relate to trades taken on decentralized trading platforms, it should be easy to confirm if any claims about profitability are true or not. Ask for information about sharpe ratio and profit factor to get more detailed insight into the service’s efficacy.
• The barrier to entry is low for all these providers, and more broadly, scams are extremely prevalent in crypto. Do your own research before paying for any memberships. 
• If a provider is not prepared to provide cast iron proof that their service is profitable, consider that a red flag. Given the highly subjective nature of trading and the high variability in short term results, it’s relatively easy for anyone to give the impression that they are trading profitably when in fact they are not. 
• Look for groups with transparent leadership, verified track records and active member support.
• Take reviews on platforms like Trust Pilot with a grain of salt, as these can be easily gamed to make a service look better than it is. 
• Many traders with a large following on X have Telegram channels where they share their setups for free, with a full breakdown on any analysis (here is one such example by RektProof). Consider this as an alternative before paying for any subscription. 
• This article claims to detail the strike rate for many of the providers shared above, though the information therein cannot be easily verified. Therefore doing your own research will be essential in order to determine the actual value of any of the aforementioned providers. 

To choose the best crypto signals provider, assess the following:

1. Track record: look for consistent, easily verifiable past performance over a minimum of 12 months. If they have been trading on chain, results should be relatively easy to verify by tracking historical trade data. Avoid providers that don’t share historical results.
2. Transparency: reputable providers explain their rationale and share both wins and losses.
3. Signal format: are the alerts clear and actionable? Do they include entry, take profit, stop loss and rationale?
4. Platform: does the delivery method (e.g., telegram, email, app) fit your workflow and enable you to successfully take advantage of the signals?
5. Community support: engaged communities often share feedback, tips and additional insights. Perhaps consider talking with several community members to verify any bold claims before committing to any subscription. 
6. Trial access: many top-tier services offer trial periods or limited free access - you can use these to test out the service first. 
7. Risk control: signals should never be open-ended, and every step of the trade should be updated in real-time or outlined in advance. Look for consistent use of stop-losses and capital management guidelines.

User testimonials, third-party reviews, and public engagement on platforms like Reddit or Trustpilot can also be useful resources to review when performing your own due diligence. 

Quality providers often maintain transparency through open channels or documented trading logs. Watch for red flags such as unrealistic win rates, lack of transparency or promises of guaranteed high returns.

Crypto signals can be a useful tool. Use them wisely by following these practices:

• Act promptly: delays in execution reduce profitability. Set alerts and use trading apps (such as the Kraken Pro app) which enable you to act quickly. If you are able to, find a way to automate the signals. 
• Risk management: some traders opt to allocate a maximum of 1-2% of their total investable capital per trade, and use stop-loss orders to try and minimize potential losses.
• Cross-check signals: combine signals with your own technical analysis to increase confidence in the trade idea.
• Avoid overtrading: you don’t need to act on every signal or subscribe to multiple services. Being selective and using strategies that match your personality may prove more beneficial.
• Diversify: compare and backtest signals from different providers to find the best source of signals on offer.
• Log your trades: keep a trading journal to track outcomes and learn from both successes and failures, particularly if you are using your own discretion to manage trades. 
• Use demo accounts: test signal reliability in a risk-free environment before committing real funds.

Crypto signals can streamline decision-making and expose traders to profitable and backtested setups. By choosing trustworthy providers, applying sound risk management, and using signals as a complement to your own analysis, you can enhance both your performance and understanding of the market. Signals should be viewed as supplemental tools, not substitutes for knowledge and your own critical thinking.

Now that you understand how crypto signals work, start acting on these alerts today with Kraken. Our advanced tools and real-time pricing ensure you can react quickly to new signals and make the most of timely market moments.