The Ultimate Guide to Crypto Alerts

Finding the right way of using crypto alerts can be challenging even for professionals. We decided to put together a comprehensive guide to using the TradingView bot alerts and other types of signals. We will try to cover sources, delivery methods, testing methods, interesting strategies that newcomers can use with ease, and more.

What are crypto alerts for trading?

Over 65% of all retail traders eventually lose money. Some estimates say that the number of investors who do not succeed is closer to 90%. Experts are trying to explain such high failure rates and use a variety of good arguments, but one of them pops up all the time. Inexperience is the core reason why so many newcomers fall short of building a good portfolio.

Crypto alerts are simple signals that come in many forms. They are designed to give retail traders a heads-up when something important is about to happen in the market. Alerts are calls to action that are often used irresponsibly by, again, inexperienced retail traders. The answer to the issue must be something along the lines of “get better and trade more”, but many investors have neither time nor funds to acquire the necessary level of experience.

Understanding when to listen to alerts and how to maximize profits is a much easier endeavor. The learning curve is much smoother and you can test signals before applying them to the conditions of the real market.

Usually, when we say “alerts” we mean one of the following:

• Trading advice from experts. A word of advice from experienced professionals can be extremely useful to newcomers. Social media influencers, YouTubers, and experts on Discord and Reddit can all be knowledgeable and provide great tips.
• Signals for automation. These are usually alerts that can be interpreted by bots. They can be delivered through partner networks within the industry or by strategies deployed on TradingView via webhooks. Since retail traders have to choose strategies and tinker with settings, results depend on personal expertise.
• Signals from specialized websites. Some of the best crypto alert sites deliver alerts that can be used for automation or manual trading. It is quite hard to identify a good supplier without actually trading with them, but it can be done if you are willing to put some time and effort into the testing process.

When it comes to cryptocurrency alerting services, retail traders are often the ones who take responsibility for the outcome of their investment activities. Many advisers and signal websites have disclaimers pointing out that they are not responsible for any losses suffered by users of their services and that signals should be considered non-advisory and educational in nature.

Only a handful of companies provide actual financial advice via trading signals, but their degree of responsibility is also quite low. Retail investors interested in using crypto trading signals should remember that the final decision on using alerts is theirs alone!

Which are the best crypto alerts sites?

Websites supplying trading crypto signals to retail traders are quite popular among conservative investors who used to rely on advice from professionals and newcomers seeking help from trained specialists. A typical crypto alert platform charges users for its services with fees often making a significant dent in potential earnings.

While many such sites claim that they deliver high annual returns and produce signals that are correct more often than not, one must be mindful of possibly cherry-picked data and insincere messaging. For example, 18% annual profitability could be a median with over 50% of investors earning way less or losing money. 84% correct signals may refer to the number of alerts that were followed by short-lived or small price movements insufficient for profitable market positions.

Finding a good website that delivers on its promises and can be used in a variety of ways is a challenging endeavor that often leaves a bitter aftertaste. Below are some examples of websites offering trading signals. Note that we do not endorse any of them and only describe them to illustrate this guide.

• TPHIT or Take Profit HIT is an online service that offers a flexible service that encompasses many investment avenues including airdrops, trade signals, community discussions, expert analysis of the market, and more. You can also engage in auto trading and read insightful articles if you upgrade your plan. The flexibility is nice but pricing may scare off newcomers.
• AltSignals.io is a popular destination for novice crypto investors looking for advice. This crypto price alert app is neatly designed with its user interface polished enough to make newbies feel at home right away. The service is integrated with many third-party providers including multiple automation vendors. You can check the historical performances of signals available to everyone in the “results” section of the website.
• Learn2Trade has been around for many years and has a good reputation among retail investors which is a rare occurrence in the world of financial advice. Newcomers may check it out for free Forex and Crypto signals that are updated regularly. Paying customers enjoy additional features including individual support, personal advisors, unlimited signals, and more.
• Dash 2 Trade is a DeFi-adjacent project with its own token and unique investment products. The platform tries to be the Jack of all trades by offering everything from free crypto alerts to automated trading systems. Judging by the token’s performance and some testimonials, the platform is not as polished and flexible as some other similar websites.

Where to get free crypto alerts for trading?

The biggest question for many is how to get crypto alerts for free. We have to start with a warning that free products are rarely of top-notch quality which is true for virtually all industries including the realm of financial advice. If you have a budget that can be dedicated to paying for signals, it is a good idea to work with a trustworthy professional instead of betting your hard-earned cash on a freebie.

You can look for free crypto trading signals in many places:

• Check out some of the best free crypto signals Telegram groups and Discord channels. Many communities have experienced veterans and trained analysts. They often provide excellent signals to all users with no strings attached. On the other hand, the social media space is tightly packed with all kinds of projects many of which are quite underwhelming or even fraudulent.
• Free crypto signals from established providers. Many platforms, like the aforementioned Learn2Trade, offer their users some freebies as a gesture of goodwill or a promotion. Many of these signals are produced by the same algorithm or team of experts that is responsible for paid alerts. These signals are relatively safe.
• Social media platforms. Influencers and aspiring analysts often make their analytical work public. Trusting suggestions from people without formal education, proven experience, or a publicly available portfolio is quite dangerous. Many influences often promote shady services and may hype some assets to “rug pull” their audiences later.

Should I trust free crypto alerts providers?

Many journalists and industry experts believe that free financial advice does not carry any value by the nature of it being public. The market is affected by masses of retail traders doing the same thing simultaneously making any “correct” publicly available alert useless for the vast majority of traders.

Another issue is the true expertise of the people behind signals or algorithms that produce them. Some signal suppliers do not disclose any information about their experts and methods of technical analysis used to produce alerts citing safety concerns and protection of technology.

Trusting unverified and untested providers of free crypto alerts is not a good idea for retail investors who want to make informed financial decisions.

How to pick a good free crypto alert supplier?

Despite many issues with free suppliers, you may attempt to find some that can be trusted. It takes much time and effort but may pay off greatly in the long run.

Here are some tips on how to pick reliable crypto alert services that offer freebies:

• Perform vigorous testing. You can use a wide range of widely available tools to check the quality of signals. Most centralized exchanges and brokers offer demo accounts with virtual money for manual testing. If you want to automate everything, the paper-trading tool at WunderTrading is a great choice.
• Read user reviews and comments. Feedback from those who tried following free signals is the best indicator of what you can expect. It is not a good idea to believe every word you read online as many negative reviews could be a result of someone just being bitter about bad luck. However, seeing multiple takes makes it easier to make a good decision.
• Listen to established specialists. See if you can verify the credentials of influencers and advisors you want to follow for free signals. Many true experts don’t have anything to hide and allow their followers to thoroughly research their backgrounds.

Make good crypto signals yourself!

Some do not like receiving any advice from strangers. Contemporary retail traders can use a variety of analytical tools on multiple platforms and custom-made instruments on TradingView. This platform is an excellent choice for both experienced analysts and newcomers. Informative yet comprehensive charts, thousands of user-rated strategies, and more allow for stress-free analysis that can be performed by even inexperienced users.

You can try using other terminals like Meta Trader 5 but TradingView appears to be a superior choice due to its many advantages like a vibrant community of power users who produce and discuss sophisticated analytical systems often designed with very specific assets and market circumstances in mind.

Since you can easily automate trading on TradingView, it can be considered one of the best crypto alerts sites. However, you should be careful when selecting a strategy to work with.

How to pick a good strategy for profitable crypto signals?

The TradingView community has developed many interesting strategies which were vigorously tested by retail traders. You can test publicly available systems after reading what others have concluded after using them.

Here are some tips on how to pick a good strategy:

• Use time-tested approaches. When it comes to cryptocurrency alerting methods, falling back on good old tricks like RSI trading is a good idea. Markets have cycles and we have established ways of identifying them. There is no need to invent a wheel when we have a whole car readily available.
• Use the “Strategy Tester”. This tool on TradingView is a great way of checking how your strategy performs against the market history. You will be able to confirm the winrate, measure the share of false positives, and make adjustments to continue iterating.
• Look for advice from veterans. Browse TradingView’s forums and dedicated communities on Reddit and Discord to find good strategies that others have rated highly. Some systems are quite reliable and produce consistent profits for their users.

Great technical indicators for crypto alerts

Reading candle charts and understanding patterns are quite useful skills. However, automated trading systems work noticeably better with technical indicators like RSI, MACD, or Stochastic. It is up to you to pick how complicated the technical analysis will be. In many cases, indicators simplify the analytical work and help retail traders build efficient automated trading systems.

Many advanced crypto alert strategies are based on using combinations of indicators that we will discuss below.

Relative Strength Index (RSI) is the Jack of all trades

The RSI is a go-to momentum oscillator for thousands of retail investors. It is used in technical analysis to measure the speed and change of price movements. It oscillates between 0 and 100 and is typically plotted as a line graph alongside a price chart. RSI is calculated by comparing the average gains and losses over 14 periods (you can adjust the value).

It is common to think of RSI above 70 as an indicator of an overbought market. Downtrends often follow such readings. When the indicator falls below 30, it points to a potential buying opportunity.

Stochastic Oscillator works great for crypto

This tool is often cited as one of the most popular among retail crypto traders. Utilizing stochastic enables you to find favorable market entry points for big swings. This indicator highlights instances where an asset is oversold or overbought, hinting at potential price retracements.

For profitable trading, apply this indicator on the Bitcoin chart and keep an eye out for signals on correlated assets. Automated robots will execute trades slightly ahead of the market, granting a slight edge. It is a good trick if you plan to work with altcoins.

Bollinger Bands (BB) helps you confirm signals

BB, short for Bollinger Bands, stands as a potent instrument for the utilization of price standard deviations from their medians in analytical work. Two SD lines form a channel wherein a moving average of the median price fluctuates. A breach of either channel boundary signals a potential emergence of a new market trend.

Bollinger Bands functions as a standalone indicator with remarkable efficacy, yet it can also validate signals generated by other indicators like RSI. We strongly advocate for keeping BB constantly in view to provide a contextual understanding of price fluctuations and periods of volatility. Notably, this tool demonstrates a consistent ability to predict trend formations.

Moving Average Convergence/Divergence

If you ask an average retail trader how they identify reversals or decide whether current trends are getting stronger, the vast majority will answer “MACD”. Here are some of its undeniable advantages:

• Trend Identification. The instrument was designed to search for strong price vectors. It uses two moving averages, short and long, to determine the strength of a trend.
• Signal Generation. The MACD line itself is the difference between the two MAs mentioned above. When MACD and the signal line cross, it is a strong indication to open a long or short position. It usually depends on the direction of the crossover.
• Divergence Detection. One of the biggest advantages of this instrument is that it shows the divergence between MACD and actual prices in the market. Divergence indicates that the price reaches a new high or low without a confirmation.
• Flexibility. The versatility of the tool is the reason why so many retail investors use it religiously. It is an excellent measuring instrument for overbuying and overselling target assets. It works for any type of asset traded on financial markets.
• Visual fidelity. Many good indicators do not have the same level of popularity as MACD simply because their UI feels either too simple or too complicated. This indicator is great precisely due to its simplicity.

Other good indicators to try

Here are some more notable technical indicators excellent for analyzing cryptocurrencies in various situations:

• Moving Averages. Two types of MAs are used the most. A simple moving average or SMA and an exponential moving average or EMA are staple tools for identifying trends while searching for potential support and resistance levels.
• Ichimoku Cloud. The indicator shows a comprehensive image of the market. It can find good support and resistance levels, and identify trend direction and its momentum. The complexity of the instrument often puzzles newcomers without any prior experience with technical analysis.
• Volume Profile is a great tool for analyzing the activity of traders and compare it to prices. You can search for support and resistance levels or look when prices consolidate.
• On-balance volume (OBV) shows you the flow of volume. You can judge whether the market oversells or overbuys the asst. The tool assesses the current values of accumulation and distribution of trading volumes to find when price retracements or complete reversals of trends may happen.
• Average True Range (ATR) measures volatility. It simply calculates the average value for the gap between high and low prices over a specified period. Use this indicator to adjust delayed orders and make your strategy safer.

It is a very short list of technical indicators that can be useful to a retail trader who wants to run a complex automated trading system. You should experiment and look for combinations of analytical tools that work well. For example, you can use a combination of RSI and Stochastic to find opportune moments to launch a Grid trading bot for maximized profitability.

Automating your crypto alerts with bots

Finally, we have to talk about the importance of automation. It is crucial for the success of your investment activities in the crypto market to learn how to set crypto price alerts up and send them to an automated trading system. With the currently existing variety of bots like GRID, DCA, and arbitrage, having good signals is more important than ever.

Again, we have to reiterate the significance of using paid crypto alerts or analytical strategies that you personally tested multiple times. Relying on freebies from shady sources is a sure way to failure. So, let’s talk about how to use crypto alerts effectively by automating your trades.

How to find a good automation vendor

Partnering with a great supplier of trading automation solutions is incredibly important. Finding a good automation platform can be challenging due to the saturation of the market, but better companies stand out thanks to having distinct advantages over the competition:

• The user interface must be concise, simple, and functional. It should not overwhelm you with unnecessary information or force you to study navigational patterns.
• Advanced technology is a must! Companies that do not push the boundaries of what is possible do not deserve your attention. For example, WunderTrading is a great example of a company that invests in technology with its strong shift toward implementing novel AI solutions.
• Flexible pricing is a good identifier of a thought-out business that wants to achieve long-term success. You should be looking for platforms that have comprehensive subscription plans.
• The diversity of the product lineup. Modern retail traders should have access to a wide range of customizable trading automation instruments. Look for places where you can launch Grid and DCA bots as well as other popular systems.

How to create a custom automated trading system

Any contemporary ATS consists of three main components:

1. A signal supplier.
2. An automation software or platform.
3. A centralized exchange that executes trades.

It is possible to engage in risk-free strategy testing through paper trading and venture into innovative products such as AI-assisted statistical arbitrage bots. The possibilities are endless if you choose to work on the WunderTrading platform.

To get started, follow these step-by-step instructions:

1. Visit the official WunderTrading website and register for the service.
2. Log in and link your CEX account.
3. Get the API key from your centralized exchange to connect the desired account.
4. Navigate to the Dashboard on the WunderTrading website and select a suitable subscription plan.
5. In the Dashboard, choose the bots you intend to deploy (e.g., DCA, GRID, signal, copy trading, etc.).
6. Start making a bot by selecting "Create a Bot" from the menu.

It's crucial to adjust the parameters of your automated trading system. Here are key settings that demand special attention:

1. Delayed orders. Stop loss and take profit settings are in the Advanced Settings section. These orders play a pivotal role by setting target profitability values, maximum risk tolerance, loss protection, and more.
2. Position size. Bots are designed to utilize all available assets for trading. Hence, selecting an appropriate position size is essential. Choose between absolute values and a percentage of the account balance. Many experts recommend allocating around 1% - 2% of total assets for a single market position.

To add some context: employing a crypto signal bot entails slightly more complexity than straightforward automated trading systems. You must have a reliable signal provider so look for the best crypto alerts sites.

The main takeaway

Even the best crypto alert sites often produce unreliable signals and lead retail traders into difficult-to-navigate market positions. If you are searching for the best app for crypto price alerts, make sure to conduct meticulous testing and vet well-performing suppliers. It is entirely possible to build a successful trading strategy based on crypto alerts, but you should be aware of potential risks associated with following someone else’s analytical work.