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This article talks about cryptocurrency signals groups, which are very different from notorious pump-and-dump, manipulation, or other sketchy groups where most members can end up getting burned. Iâve never participated in any of those groups personally and never intend to.
I spoke to a trader who goes by the pseudonym TazeMeBro in the Cosmic Trading cryptocurrency group about his experience trading cryptocurrency for one month. He told me he started with $200 and is currently at $1,000. For one month, especially one as turbulent as January, that was pretty impressive return on his investment. But the credit wasnât given just to his trading prowess; he had the advantage of being a member of a cryptocurrency trading community.
Discord - Free voice and text chat for gamers
The Not-So-Secret World of Cryptocurrency Signals Groups
What people think crypto groups are like
Cryptocurrency Signals Groups are communities of people who come together and share what theyâre buying, the latest news, pricing predictions, and other random things. Usually, there is a core team of staff in those communities that:
- Dig through the Internet in places like Reddit, Twitter, and Google News to collect the latest information on the cryptocurrency market, and
- Use various technical analysis on Trading View and Bittrex Enhanced (Google Plugin) to make trade predictions.
These groups are not secret, exclusive fraternities that require you to participate in hazing as a rite of passage or some minimum contribution amount; instead, theyâre very open groups (usually on Discord) that allow anyone to join (seriously, you can join right now by clicking the Discord link: https://discord.gg/meCudbf) and begin participating immediately. These groups are intended to bring together cryptocurrency trading enthusiasts together to help one another grow investments.
What the crypto groups are actually more like
The communities usually have three categories of members: 1) the staff, 2) the premium members, and 3) the free members. The staff are the ones who do the most research in the cryptocurrency space, and, based on their research, supply signals to the community. Signals are suggestions of coins that the staff (and sometimes community) recommend you to consider for your next purchase. I say recommend because it is ultimately your decision to buy or not, and it is your responsibility to manage your money; the staff can only provide suggestions and opinions of good entry and sell prices. More often than not, the trading suggestions (called signals) that the core staff puts out for the community hit their intended targets.
A premium signal on SWT from 1/23/2018 in the Cosmic Trading group hits 2 out of the 3Â targets.
Then there are the members, both premium and free. While there are some differences between the two tiers of membership, the main value proposition Iâve found is that premium members have access to more frequent signals than free members.
There are always primarily two choices when it comes to trading cryptocurrencies: hold Bitcoin and watch Bitcoin grow, or try to take advantage of the the fluctuations of altcoins to trade and increase your Bitcoin holdings (arguably, you could replace Bitcoin with any other coin in this scenario). If you start taking advantage of the signals and actively trading, youâll quickly find yourself more concentrated in your total BTC than your total USD/EUR/fiat.
Cryptocurrency Trading Groups: The Good
Crypto Group Cosmic Trading recording results of recent cryptocurrency calls that hit their targets
Quality signals are a huge plus. Usually, communities have two tiers of membership: free and premium. Both tiers have access to signals, premium members just have the added bonus of having access to more frequent signals than free members; in fact, I joined my first community last year after deciding to purchase a call recommendation from the free section of a group; that single call earned me enough profit to purchase a premium membership, which is what I used to buy premium membership.
You can start getting signals for free. Like I said before, there are premium and free members, and the main difference is that premium members have access to more calls. The free signals can be a way to try out the community. If you enjoy the profits from those calls (though not guaranteed), you can then decide whether you want to go premium or not.
More eyes to keep updated and educate you on the market. Doing research is a daunting task when you have more than 1,500 different cryptocurrencies to keep up with on a daily basis. If you join a community, there will be members with different coins that theyâre tracking and can inform you about, as well as other crypto-related topics such as ICOs and mining.
The community is also extremely supportive of one another, which can be a huge impact when it comes to keeping your focus after a bad trade or an overall bad day in the markets. Panic selling can burn many novice traders (it has definitely burned me in the past).
Cryptocurrency Signals Groups: The Not So Good
Signals/calls/predictions are what they are: glorified guesses. This is a cryptocurrency trading community, not a secret insider-trading, market-manipuation, or pump-and-dump group. The legitimacy of those types of groups are questionable. The groups Iâm describing are signals groups, and signals can never guarantee 100% accuracy. With that in mind, also remember to never put all your eggs in one basket; i.e., donât jump in 100% on anything. Iâve witnessed this in the past and sometimes it can turn out nasty.
Profitability is only as powerful as the market; i.e., results may vary. This means that when the market turns bear-ish, such as when Bitcoin started to tumble from its all-time high of $20,000 to the $10,000âââ$12,000 range recently, you will unlikely see as much profitability compared to a bull market. For example, TazeMeBro got in during a very bullish time after Christmas, which contributed to the growth of his overall holdings, but the recent bear market has probably impacted his overall holdings and resulted in his current total of $1,000.
The Various Aspects of a Crypto Group
Using Cosmic Trading as a template, here are the main sections and chat rooms you can expect out of a cryptocurrency trading group:
- Information: usually has the welcoming message for new members, any announcements, reviews from the current members, events/contests, and the rules that every member must follow to avoid getting banned (e.g., no spamming, no trolling, no FUD, etc).
- Chat: the primary chat rooms. The two main categories are Chat (free members) and Premium Chat (premium members). There is a third category of altcoins that are usually used to talk about altcoins and ICOs.
- Premium Membership: accessible if you have a premium membership. Lists of ICOs, rules, volume-tracking tools, etc.
- Signals: information and listings of free and premium signals and the results. For premium members, the signals are categorized across Bittrex signals, Binance, Short Term, Medium Term, and Long Term signals.
- Other: Miscellaneous conversation related to cryptocurrency, such as mining, technical analysis, investment guides, etc.
- Voice Channels: a default from Discord, it allows anyone to hop on voice chat with other members.
Getting Started with a Community
Move forward at your own discretion. Like I said before, this is not some secret formula for successful tradingâââsignals are ultimately glorified guesses and are never a guarantee.
First, consider setting up an account on both Binance and Bittrex, as most of the groups use these two exchanges to trade altcoins.
You can join the groups immediately. The majority of them operate on Discord, which is a program that lets you build chat rooms (originally built for a gamer audience as a modern and free alternative to things like Teamspeak). They have free and premium communities, and free communities are a great place to start off. As a free member, you still get access to the community signals from the core team, just not as many as the premium members have access to.
Discord - Free voice and text chat for gamers
If you enjoy cryptocurrency-related topics such as coin analysis and trading/investment, follow me on Medium. And as always, if you have any questions, you can ask me through DM on Twitter.
The Kinda Super Secret World of Cryptocurrency Signals Groups was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.