Crypto is where the signals industry is at its wildest. Telegram is full of groups promising 10x calls and guaranteed pumps, and most of them are noise, scams, or both. But crypto trading signals done properly, with real analysis, stops and reasoning, can be a genuine edge. Here is how to tell the difference.
How crypto trading signals work
Same principle as forex signals: an analyst sends you the coin, the direction, the entry zone, the stop loss and the targets. The difference is volatility. Bitcoin can move 5% in an hour and altcoins can move 30%, so the risk management has to be tighter, not looser.
The red flags of a crypto signals scam
- Guaranteed returns or daily profit promises. Nobody can guarantee anything in crypto.
- No stop losses, just hold and trust. That is not trading, it is gambling with extra steps.
- Pump calls on tiny coins you have never heard of. Often the caller bought first and is selling into you.
- Screenshots of wins with no verified track record and no losing trades ever shown.
- Pressure to deposit with a specific unknown exchange through their link.
What good crypto signals look like
A proper crypto setup names a major, liquid market like Bitcoin or Ethereum, gives a clear invalidation level where the idea is wrong, sizes the trade so a stop out costs you 1% or less, and explains the reasoning: the level, the structure, the catalyst. If you cannot explain the trade back to someone, you should not be in it.
Position sizing for crypto volatility
Because crypto moves so violently, your stop distances will be wider, which means your position sizes must be smaller. The maths never changes: decide the pounds you are willing to lose first, then let the stop distance set the size. A 1% risk rule matters twice as much in a market that can gap through your stop.
The bottom line
Crypto signals are a tool, not a lottery ticket. Use them to learn how experienced traders read the market, manage your own risk on every trade, and stay far away from anyone promising guaranteed gains. We cover crypto alongside gold at Affinity, always with the reasoning, the stop and the targets, because the goal is for you to trade it yourself one day.