Crypto signals are defined as a set of instructions packaged as trading tips that help traders to invest wisely. The signals allow traders to avoid apparent pitfalls that could easily cost them money. Signals can be created by a software or through the knowledge and opinions of experienced traders. 

Experienced traders and analysts with long track records are the ones tasked with building crypto signals. Note that the trading signals provided by experienced analysts are not products of guess work. Hence you can easily rely on them and overcome the entry barriers to trading crypto.

Market analysts undertake thorough technical and fundamental analysis of particular cryptocurrencies to come up with detailed crypto trading signals. The format entails details of the entry level price, stop loss and profit take target.

A crypto signal in its most basic form would look like this: 

Trade Ripple (XRP) – Sell – $0.55  – TP $0.40 – SL $0.70

In most cases, crypto signal platforms will provide a short term signal with all targets mapped.

How to use ByBit for trading signals

You need a ByBit account to continue. Once done with registering your profile on the official exchange account, come back here and learn the exact way of trading ByBit using trading signals. We will make the assumption that we have received Futures trading signals. 

Prerequisites include: 

Step 1: Go to derivatives

Locate USD-M Futures on the ByBit homepage. Navigate to the Derivatives Button at the top of homepage. If you do not intend using leverage, click Spot located under Trade. Depending on your preferred base stablecoin, you can choose between USDC and USDT. in our case, we are going with USDT Perpetual.

At this point, I am already assuming you have already loaded your Bybit wallet with funds. As well as transferred the funds from your funding/spot wallet to the Futures wallet. 

The next step is to now set up the leverage. We have two options when customizing leverage, Cross or Isolated margin. Cross means the leverage will affect your entire capital irregardless of whether its in an open position or not. Isolated means the leverage will not affect your balance in the Futures wallet. We recommend using Isolated. An Isolated leverage ensures you reduce the overal risk spread just incase you have several Futures positions you want to open simultaneously.

After picking Isolated, set your leverage to 2X through the steps shown on the image below and confirm. Since our signal is a buy action, we will set the Long Leverage to 2.

The next step is implementing the signal you received. On the right sidebar, is an open and close bar. Choose the Open Position Bar and click on Limit.  You will then need to tick a box written :

Checking the box will display two text boxes where you can now customize your take profit target and stop loss target depending with the signal you received. In our case, we have a buy signal for the ETH/USDT pair at $1350, a take profit target at $1600 and a stop loss target at $1100.

After the above steps, its time to open our long position. We intend to use $25 to open a buy position at $1350. The other parameters include to set up a TP and a SL at $1600 and $1100 respectively. 

This is the final step and at this point you only need to patiently wait for your order to fill. Something else you need to look at is how to ake profit without closing your position. Nonetheless, we are not going to cover that topic in this article. But generally, this is all on how to use crypto signals with ByBit.

How to identify the best trading signals

Since you have already learnt how to trade Bybit with crypto signals, lets scratch the surface a little bit more. In this section, we answer how to find the right trading signal. 

1.What other features are available besides crypto signals? 

A good signal provider provides more than just signals. This could be news coverage, events, live updates and detailed description of the methodology they use for a particular trade. Choose a provider that offers passive learning besides earning. 

2.Do they have a free trial or money back guarantuee? 

A service provider with either a free trial or money back guarantuee indicates the team is not just out for money. They have an urge to grow their customer relations and are invested in the long term growth and advancement of its subscribers. 

3.What are you instincts telling you? 

Your gut instincts will always warn if something is not right. The right service provider will not relay any red flags or cause any doubts. Therefore, try as much as possible to rely on our gut feelings when choosing the right trading signal provider. Just incase you identify any redflags, the provider is not worth the risk. Hence, flag it down. 

4.What’s their track record and experience? 

Identify a service provider that has been around for a while. Newcomers have high chances of getting things wrong. A seasoned team of analysts and signal providers with years of experience are the most preferred choice. Also take note of the platform’s reputation and its historic perfomance. Consistent positive testimonials and ratings are signs of a credible provider. 

5.Are they honest and transparent?

A quality provider is transparent when communicating their wins and losses. It is not possible to have a long streak of wins only if there is no back up proof. Genuine providers will back up their wins and admit losses on the way. 

Risks of using crypto signals when trading

Pros of Crypto Signals

Cons of Crypto Signals

Why use Crypto Signals with ByBit?

Security and data privacy – you need not to worry about the safety of your funds when trading with Bybit. The platform follows a strict data privacy protocol to ensure their user data is safe and can never fall in the hands of unscrupulous individuals.