Cryptocurrency For Beginners
Cryptocurrencies like bitcoin have taken the world by storm. Blockchain technology powers them. They’re secure and easy to use.
There is no need of third parties like a bank to store cryptocurrency or process payments. It’s all in your hands. However, there are over a 1000 cryptocurrencies out there and growing.
So how can you make smart trading decisions? This guide is meant for beginners!
Just like regular trading, you can learn to analyze the cryptocurrency market, its signals and respond accordingly.
There are 2 types of analysis to assist you in making smart crypto trading decisions:
1. Technical analysis
2. Fundamental analysis
Technical analysis uses live, real-world data to predict and forecast the price movement of a cryptocurrency. You analyze past and current price movements represented in charts to forecast very short-term changes and long-term trends.
It will help you accurately interpret market sentiment.
The charts are only a tool though, it’s up to you to draw the right conclusions.
If you succeed, you can buy low, sell high and make a profit.
Fundamental analysis is in-depth research to assess and predict the long-term price of a cryptocurrency. It can be quite complicated. Major factors to help you make a fundamental analysis for cryptocurrencies are:
1. Functional Benefits
Why is the coin here and is there a real intrinsic value to it for people to buy it?
2. Developers
Who are the developers behind the digital asset and are they trusted as experts?
3. User Adoption
How many users does the cryptocurrency have and is there a strategy to increase its adoption rate?
4. Market Potential
There must be sufficient potential demand, a market, for a cryptocurrency to grow.
5. Outside Factors
For example, when China decided to ban all cryptocurrencies, this negatively impacted their prices.
6. Trading
The perception of a cryptocurrency as a reliable store of value, like a gold or a bond, has a notable influence on its price. You’ll also need to understand a bit of the technology behind a cryptocurrency. Some tech savviness will help.
With Verified Crypto Traders, you will learn about all these aspects of cryptocurrency and gain an a vast understanding about both technical- and fundamental analysis.
Learn the ins and outs of bitcoins, additional cryptocurrencies and crypto trading with our practical webinars and active telegram chat where you can ask questions to the professional traders themselves.
If you want to receive the best crypto trading opportunities via Telegram, we recommend you to sign up with our cryptocurrency signal service.