Cryptocurrency trading has created countless millionaires and billionaires. Many of these traders use crypto signals to aid their trading. This overview shows the three main types of crypto signals, their applications and profitability. 

What are Cryptocurrency Signals?

Cryptocurrency signals are forms of guidance that inform a crypto trade. Cryptocurrencies have price movements, like stocks. You can gather information from the cryptocurrencies to inform your trades and make better decisions. These signals can come in many forms. Signals can be very powerful tools for those looking to learn more about crypto trading. 

Types of Crypto 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 code that tells it to buy when the price drops and sell when the price rises. 

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 Apps for Crypto Trading Signals

There are many apps and groups that 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.