Cryptocurrencies

About Cryptocurrencies

Cryptocurrency is an online trading medium that uses cryptographic functions for financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. The most important feature of a cryptocurrency is that it is not controlled by any central authority. Decentralization of the blockchain makes cryptocurrencies immune to the government control and interference. Transactions can be performed with reduced transaction costs. This allows users to bypass the high fees levied by conventional financial institutions.

How To Do A Technical Analysis For Cryptocurrency

If you’re new to the cryptocurrency market and the trading market in general, then the way information is presented can overwhelm you.
 
In the competitive cryptocurrency industry, there’s a lot to win and a lot to lose. If you want to make the best decisions, you need to learn how to do a technical analysis to find telling trends and examining historical price charts.
 
First, history has a habit of repeating itself, and if you can hone in on a trend you will be able to forecast potential market changes. That will give you the leverage you need to make an intraday profit. All recent, past and upcoming specifics have already been converted into current asset values. With respect to Bitcoin and crypto, this would consist of multiple variables such as current, past, and future demand. Also as any regulations affecting the crypto market.
 
The current price is a response to all the current details including the expectations and knowledge of each coin traded in the market. Technicians interpret what the price suggests about market sentiments to make smart predictions.
 
Second, understand the metrics to study. By looking at the number of wallets vs the number of active wallets and the current volume of trading, you can assign a value to a particular currency. Then you can make informed decisions, based on the market price of today. The more predictive your predictions are, the greater your chances of profit.
 
If you expect a specific price shift, you can borrow money to boost your potential profit if your prediction materializes. Exchanges have different margin requirements and offer varying rates, so it is advisable to do your homework first. Remember, trading using margin increases the size of potential losses and the potential profit.
 
Third, understand that movements in prices aren’t accidental. Instead, they often follow trends, which can be long or short-term. After a trend is formed by a coin, that trend is likely to be followed in opposition to it. Cryptoanalysts try to isolate and profit from trends. This is why more important is. Analysts focus more on a coin’s price than any variable which produces a move in its price. While many aspects might have influenced a coin’s price to move in a specific direction, they assertively review supply and demand.

How to Do A Fundamental Analysis For Cryptocurrency

The concept is simple. You must be able to recognize that the intrinsic value of an asset is out of proportion to its current market price. With this you can trade on the basis of your analysis and make a profit in theory. You should aim to identify projects that you think have a strong chance of succeeding. Then, when you invest and the team proves that it’s capabilities, other investors should notice and the price action should be positive. That is a basic analysis.
 
To determine its future value, you are researching your investments and It works the opposite way too. If you are researching an asset with a large market cap, you may find the asset is highly overvalued.
 
In reality, you can trade to make a profit when assets go down in price. That is known as shorting. Often you will find situations where fundamental analysis plays out as you would expect. If you can perceive a project’s future promise, or know the project is actually undervalued on the market, you can benefit from it. Traders need to be able to recognize how market participants will receive fundamental changes like this. It doesn’t matter how you feel about it in many cases, it does matter how the market will feel about it.

The Best Time to Trade CryptoCurrency

Many new investors are curious on what times in cryptocurrency markets would be the best to make purchases. The problem can seem like an odd one on the surface. After all, markets are so complex that buying in is rarely a stable right or wrong time that could be applicable to everyone.
 
Knowledge is power and every new piece of information that you take in makes you a more rounded investor.
 
In forex trading, when one country closes for business at the end of the working day another is opening up for business. This convergence has really made Forex the first 24-hour market. This contrasts sharply with other assets, such as stocks that observe strict trading times and are traded only for a few hours each day. While FX boasts of trading around the clock, it’s still closed over the weekend.
 
Cryptocurrencies trade twenty-four hours a day, seven days a week, all year round. Unlike many other more conventional markets that follow the work week.

Cryptocurrency Tips For Beginners

1. Have a motive for entering each trade
 
This is an important decision. Whether your purpose is to day-trade or to the scalp, you need to have a purpose for starting to trade cryptos. Trading digital currencies is a zero-sum game. You need to realize that for every win, there is a corresponding loss: Someone wins; someone else loses.
 
Whether you are a day trader or scalper, sometimes you’re better off not gaining anything on a certain trade than rushing your way into losses.
 
2. Set profit targets
 
Every trade we get into requires us to know when to get out, whether we’re making a profit or not. Establishing a clear stop loss level can help you cut your losses.
 
Choosing a stop loss is not a random activity. The most important thing to note here is that you shouldn’t be carried away by your emotions – a great point to set your stop loss is at the cost of your coins. The same applies to profit levels if you target to get out of the market after hitting a certain minimum profit; stick to that.
 
3. Stay calm and watch your back
 
Beware of that moment when the green candles seem to be screaming at you and telling you to jump in. It is at this point that the whales I mentioned earlier will be smiling and watching you buy the coins they bought earlier at very low prices. Guess what normally follows? These coins usually end up in the hands of small traders. The next thing that happens is for the red candles to start popping up due to an oversupply and, voila, losses start trickling in.
 
4. Take risks with caution
 
Avoid running after seemingly fantastic profits. Instead, they observe and gather small but sure profits from regular trades.
 
In addition, consider investing less of your portfolio in a market that is less liquid. Such high trades require more tolerance, while the stop loss and profit target points will be allocated further from the buying level.
 
5. Underlying Assets Create Volatile Market Conditions
 
It is vital to understand that Bitcoin is relative to fiat currencies and is quite volatile.
 
The simpler version of this is that when the value of Bitcoin goes up, the value of altcoins goes down and vice versa.
 
The market is normally foggy when the Bitcoin price is volatile. As you would imagine, this prevents most traders from gaining a clear understanding of what goes on in the market. At this point, it is advisable to either have close targets for our trades or simply not trade at all.
 
6. Don’t Be a Cheapskate
 
Buying a coin because its price seems to be low or affordable can cost you a lot. The decision to invest in a coin should have very little to do with its affordability but a lot to do with its market cap. The conventional stocks are gauged by their market caps. It is evaluated using the formula Current Market Price X Total Number of Outstanding Shares, the same applies to cryptocurrencies.
 
There is no difference between having a coin priced at $10 per coin with a total number of 1 million shares in the market and the same coin being priced at $100 with 100,000 shares in the market. For this reason, it is more justifiable to use a coin’s market cap to decide whether to invest in it than using its price. The higher a coin’s market cap, the more suitable it is for investment.
 
7. Exercise caution with Crowd-Sales/ICOs
 
A lot of people have lost numerous investments because of ICO scams, this is why you need to exercise caution when looking to invest in any ICO.
 
It’s all about paying close attention to those details that most people seem to overlook while only focusing on the promised returns.
 
Do your homework. Conduct a background check on the team behind the project and analyze their ability to deliver on their promise. In addition, you should also look at the viability of the idea behind the ICO, poke holes in the project’s white paper, and seek answers where necessary.
 
8. Diversify, Diversify, and Diversify!
 
Investments are unpredictable. Even those that seem to have positive returns can come crumbling down under certain economic conditions. Cryptocurrencies are even more unpredictable. As much as you can reap profits in thousands in a day or less, the opposite is also true. You can lose everything you invest in digital assets in a flash of a second. So, the best way to get past such uncertainties is through diversification.
 
To conclude, leverage the goal-setting feature by placing sell orders. Ensure that you set your revenue targets by placing sell orders in the order books. You never know when your order price will be met, earning you exactly what you needed. Besides, sell orders attract fewer transaction fees since they are the market “makers”.
 
Take it easy while trading: learn to trade with our emotions and keep your eyes on the goal.

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Latest Posts for Cryptocurrencies

How to Compare Brokers

Which crypto-monetary platform you choose to trade on is one of the most important decisions you’ll make. The exchange for your cryptocurrencies will act as a digital wallet so don’t dive in without first considering the factors below. Some brokers specialize in trading in crypto, others less so.
 
First, leverage Apps & software, because you need to be constantly tuned in. Reacting to big news events just a few seconds late, could make the difference between profit and loss. That’s why many brokers like crypto.com coin offer user-friendly mobile apps for cryptocurrency. It ensures you can stay up-to-date whether you’re on the train or making your day’s sixth coffee.
 
Remember that the cryptocurrency trading site you sign up with is where you invest a significant deal of time every day. So look for one that fits your company style and needs.
 
To ensure the exchange has the technical tools and resources you need, it is always worth setting up a demo account first.
 
Second, security. Please search comments to ensure the safe sharing of the cryptocurrency. They will be lost forever if your wallet is compromised and your digital money moved out. And while safe and complicated credentials are half the fighting, the trading program must fend off the other half. Fees each exchange has different fee rates and paying systems. Only a small change in prices will significantly eat into earnings as a day trader running a high number of trades.
 
There are three main fees to compare:
 
Exchange fees – this is how much you will be charged for using their software for cryptocurrency. The rate may be influenced by what currency and coins you trad.
 
Trade fees – That’s how much you’ll be charged on their exchange to trade between currencies. The cost to make an offer to sell is a marker fee. A taker fee is the cost of someone taking up an offer.
 
Deposit & withdrawal fees – If you decide to deposit and withdraw money from the exchange, here is how much you’ll be paying. Often you will find depositing your funds is cheaper. Consider also some exchanges that don’t allow credit cards. Using debit/credit usually comes with a charge of 3.99%, a bank account will normally incur a charge of 1.5%. Final Word On Brokers, that’s not a light decision to take. Do the maths, read comments, and check the app and share it first.