The hot topic of the market is cryptocurrency. Everybody is searching for ways to research the market and invest in it. Why not? You’ve heard many stories of people making double, triple, quadruple, or even more from it. It is no surprise that you want to give it a try.
What pre-game preparations or factors do you need to invest in Cryptocurrency and start making money? It is one thing to read about the terminologies, but what happens after? It’s learning about them.
Cryptocurrency is an investment that can be as valuable as any asset. Before you invest, it is important to be familiar with the circumstances that determine its value and when to sell or purchase Cryptocurrency. It is difficult to know the market and keep up with current events and news because Cryptocurrency does not have a specific regulatory body.
We have the Altcoin season as well as the season. There are also euphoria stages and despair stages. Let’s first understand the terminologies.
Euphoria stage: This is not Enrique Iglesias’ album. The Euphoria stage, just like the share market has ups and downs, is the rise of Cryptocurrency. This is when you should be selling. This is because high prices will result in higher profits.
Stage of despair: I know how intelligent my readers are and that most of you have probably understood what the despair stage is. Let’s take a look at it briefly. The point of despair is when prices fall or go down. The best time to invest in Cryptocurrency is now, as the prices are low.
How do you determine if you are in the euphoria or despair stage? Glass node is a trusted website that provides all the information you need to make the right decisions.
Now that you have an understanding of the stages of euphoria, despair, and the phases of the emotions, let’s move on to the fundamentals of buying and selling Cryptocurrency. You will need to have some theories of your own that can support the decision, no matter how advanced or expert you may be. These theories might not always be helpful. You must be familiar with all facts and current news related to the topic in order to make a firm decision.Also read: 10 Top Android Apps For Personal Finances
Selling is just as important as buying. You must consider all factors before buying Cryptocurrency. You should be knowledgeable about all factors and situations that could help you sell Crypto. Let’s take a look at some of the basics you need to know before selling or buying Crypto coins.
Technical Analysis: It doesn’t matter if you are purchasing a Cryptocurrency or shares, the calculation is critical in both cases. What do you need now? What number of coins should you purchase and at what price? What time should you purchase a particular coin? To avoid mishaps or losses, you need to conduct technical analysis.
Technical analysis uses mathematical indicators that estimate market trends to determine how the market will function in the future. There are many factors to consider when studying price movement. There are also three assumptions that support technical analysis. Let’s take a look at these:
Price follows a pattern: No matter how long you set, the price will fluctuate and show trends regardless of market movements that are not random.
The graph’s candlesticks are indicated by the red and green marks. They are used to indicate the trend pattern and direction of the price. Prices are said to be following a trend just like any other subject. You can easily predict future price movements by looking at existing or ongoing trends. The trend in price could be either downwards or upwards, or even to the right.
The market discounts itself: Different Cryptocurrencies can have different prices. Have you ever wondered how this happens? Their utility and demand are the reasons. This assumption hides the fact that the price of a coin can affect everything. Everything you need to know about Crypto assets is determined by their price. You can easily observe the price of the coin and not have to consider other factors.
You can see that the price of a coin is decreasing indefinitely. The information on the chart (such as the candlesticks) can be used to estimate how much the price will drop. This will give you an idea of how likely it is that you should invest in the coin.
The market is a repeating entity: Many philosophers and books have spoken about the fact that history repeats itself. Is this only true for relations? Not necessarily. Because the market is repetitive, even Cryptocurrency’s history repeats itself. You can use this information to predict future price movements by looking back at past patterns. While the future patterns might not always be exact, they may be close to the previous ones.
This logic is supported by logic. The graph will change over time if 75% or 1/3rd of market profits are realized. After a profit, it is obvious that the market’s price will drop. Investors see market value rising as an opportunity to sell their coins and make a name for themselves in the market. This can lead to the market going down if a large number of investors follow the same protocol.Also read: Top 6 Tips to Stay Focused on Your Financial Goals
Whales – These mammals are not what we are referring to. Whales are known to be big investors in the Crypto market. A whale’s actions or reactions can completely change the game. The market has only 1% whales. Although it may seem like a small number, in reality, it is quite substantial. If they make large transactions, like selling large portions of their holdings, a whale can cause prices to fluctuate. The ‘whale watchers,’ on the other hand, would do the same and also sell their parts. This could lead to a drop in the coin’s price.
The same applies to investing in the same coin if a Whale purchases a large amount of it. While the whales’ decisions might not always be correct, we are more inclined to follow actions taken by well-known personalities.
Research – Before buying or selling a Crypto, this is the most fundamental thing you should do. Research is key. Take a look at previous data and conduct thorough research as often as possible. You will be better prepared when you first start something new.
It is crucial to research Cryptocurrency both when you buy it and when you sell it. This is how you can buy at lower prices and sell at high prices. Always do background checks on any coin you plan to invest in. Background checks refer to looking at previous records, which will include information about their success, failures, and utility.
Although Crypto is hot, it’s important to understand the basics before jumping in. While the potential profits can be enormous, losses could be devastating if you don’t do your research. This article will help you make decisions if you’re new to Crypto.
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