Although you can find cryptocurrency news, enthusiasts, debates, and discussions on just about every social media platform these days, there’s a place that crypto traders frequently refer to as home, and that’s on Telegram channels.
The brand awareness is definitely there because it’s projected to cross the one billion user count by the end of 2022 and currently attracts over 550M+ active monthly users.
While Telegram is favored for many reasons, crypto traders seem to gravitate towards one of its main features, which is the trading or signal channels. Users even discovered that to streamline the trade process further, using a trading bot with Telegram signal services was possible.
So what exactly is a telegram channel for crypto traders? Does it live up to all the hype and fulfill our expectations? Let’s find out.
Defining a “Channel”
It’s common to hear Telegram being utilized by the crypto community for purposes other than trading, but in those cases, it’s more common to see Telegram “groups” being used instead of “channels”.
A Telegram channel is much different from a Telegram group in various ways, the primary ones being that a channel is read-only, meaning that you receive but cannot send messages (while groups are interactive); and the other main difference is that channels, often times referred to as a “signal groups”, are used primarily by traders.
Within these channels, live trading setups and information is shared with thousands of traders, alerting them to when the best time to enter a crypto trade may be.
In these alerts or signals, it’s common to find information such as the asset name, at what price to buy or sell it, and what the suggested stop loss should be set at. Some channels focus solely on alerting you when to sell an asset, while others only inform you when to acquire.
Types of Channels
There are two main channels: a manual and an automated channel.
A manual channel is most times operated by an individual trader and, in some cases, a group of traders.
These traders usually will have either years of experience (possibly even decades) in the market, successful track records, and proven winning trading strategies, or in the best case scenario, a combination of all three.
Their goal is to provide their followers and community with live and actionable signals on when and what asset to trade – signals or information that can be immediately put to use and make profitable trades.
As the name suggests, the traders will have to manually type this information to send to their followers whenever they come across a new trade opportunity.
An automated channel for crypto traders is operated by coding language, otherwise called a bot.
Traders program this bot to adapt and implement their own trading conditions and strategies, search the entire crypto market to find tokens that meet those conditions, and then simultaneously send a signal or alert out to their followers, notifying them immediately of the opportunity.
With a better understanding of the different types of channels, it’s time to check out their benefits.
Also Read: 10 Tips to Survive Crypto Bear Market
Pros of Channels
Telegram trading channels provide many benefits for both the publisher or owner of the channel and their subscribers.
For one, since the crypto space is so large, an individual can’t identify and capitalize on every beneficial trading opportunity that presents itself within a market trading day – after all, the crypto market never closes.
Even then, when it comes to inexperienced traders, or even those utterly new to cryptocurrency, trading channels make it possible for anyone to immediately begin learning about trading while earning from trades.
A substantial hurdle for every trader to overcome is their emotions, and by relying on unbiased data from the channel, which cares nothing about which way the asset is headed and only when the best time to enter or exit the position is, a trader places themselves in the best possible position to succeed.
This means that the channel provides prime trading tips regardless of the market conditions and sentiment, bull, bear, or even sideways market.
It’s also an excellent way for newer traders to begin training themselves as it allows them to “shadow” or closely follow an expert’s trail of trades.
Channels usually present opportunities throughout the day, and if one were to remotely follow this schedule, it would also help teach newer traders to not dwell on a single trade, whether that be not gloating or sabotaging themselves excessively.
But of course, all of these benefits are only relevant if you are using a reputable Telegram crypto trading channel.
The freedom from big tech censorship and a somewhat private but easy-to-use platform are all undoubtedly benefits. However, there are a few things to keep in mind when searching for your perfect platform.
Crypto trading Telegram channels have attracted and encouraged many traders to create their channels on telegram; while they all may be efficient traders, everyone has their own trading style and strategy – and not one size fits all.
Some channels may focus specifically on one type of trading, such as day trading. In contrast, other channels may be dedicated to strategies like swing trading.
While this is unquestionably a benefit as it provides traders the freedom and variety to find the perfect channel for them, it can take some time and effort before finding the right one.
And, of course, as with anything new, there will be a learning curve around using the technology itself. Nonetheless, there are many guides and tutorials to accommodate you on your journey.
Things to Remember
Telegram channels for crypto traders can undoubtedly act as an enhancement to any crypto investing strategy. Sure, there are some red flags to be cautious of, but due diligence should always be a must, no matter the size or type of investment, and this is no different.
Remember to thoroughly research any trading channel you are considering joining – look for social proof and feedback from actual customers.
And last but not least, if it sounds too good to be true, that’s because it usually is!