Why can signals be unclear or vague?

1. Lack of clear methodology:

• Some signal providers do not have a deep understanding of the market or use superficial technical analysis, leading to vague recommendations (for example, 'buy when the price looks low'). Such signals do not contain precise entry, exit, or stop-loss points, making them difficult to use.

2. Commercial strategy:

• Vague signals may be part of a marketing tactic to draw newcomers into paid groups or VIP channels. Providers may offer vague signals in free channels and 'more accurate' recommendations for a subscription. This is a way to convince users that paid content is better.

3. Avoiding accountability:

• By giving vague signals, providers avoid accountability for possible losses. For example, instead of a clear 'buy BTC at $30,000 with a stop-loss at $29,500', they might say 'BTC looks promising for buying soon'. This allows them to evade blame for unsuccessful trades.

4. Market manipulation:

• In some cases, vague signals may be part of schemes like 'pump-and-dump'. Signal providers connected to big players may create hype around a specific coin without providing concrete details to encourage the masses to buy, driving up the price for their own benefit.

5. Insufficient qualification:

• Some 'traders' simply do not have enough experience or knowledge to provide clear signals. They may copy signals from others or pass off their own assumptions as professional recommendations.

Why do they do this?

1. Attracting customers to paid services:

• Vague free signals are often used as a 'hook' to convince traders to join paid Telegram channels, such as Binance Killers or AltSignals, where 'more accurate' signals are promised.

2. Increasing channel popularity:

• Vague signals may be published in open groups to attract attention and increase subscriber numbers. The popularity of the channel enhances its appeal to advertisers or for selling subscriptions.

3. Market manipulation:

• In 'pump-and-dump' schemes, signal providers may intentionally give vague recommendations to provoke mass purchases of a certain coin, allowing 'whales' (large investors) to sell their assets at a higher price.

• Vague signals reduce the risk of accusations of providing financial advice without a license. Providers may claim that their recommendations are 'educational' or 'informational,' rather than direct instructions.

5. Creating an illusion of activity:

• Some channels publish vague signals to appear active and engaged, even if they lack quality content. This can maintain audience interest, especially among newcomers.

How to recognize quality signals?

To avoid the traps of vague signals, pay attention to:

• Clarity of data: A quality signal includes specific entry and exit points, stop-loss, and risk-to-reward ratios (for example, 'Buy ETH at $2,000, stop-loss at $1,950, take-profit at $2,100').

• Transparency of results: Reliable providers, such as AltSignals or CryptoSignals.org, publish statistics of their trades so users can verify accuracy.

• Educational content: Good channels explain the logic behind signals, including technical analysis or market trends, rather than just issuing recommendations.

• Reviews and reputation: Check reviews on independent platforms like TrustPilot and avoid channels with dubious reputations.

• Avoiding exaggerated promises: Signals with 'guaranteed accuracy of 99%' or '100% profit' are often scams.

Recommendations for traders

• Conduct your own analysis: Use signals as a supplement to your own technical or fundamental analysis, not as the sole source of decisions.

• Manage risks: Always set stop-losses and do not invest more than you can afford to lose.

• Test on a demo account: Before using signals in real trading, check their effectiveness on a virtual account.

• Choose reliable providers: Prefer channels with a proven track record, such as AltSignals (since 2017) or Learn2Trade, which provide detailed signals and have positive reviews.

Conclusion

Unclear and vague signals on Binance are often the result of insufficient qualification, marketing strategies, or attempts to manipulate the market. Their goal may be to attract subscribers, avoid accountability, or create hype for their own benefit. To protect themselves, traders should choose providers with transparent statistics, clear recommendations, and a good reputation, and always combine signals with their own analysis and risk management strategies.