BEST WAY TO MAKE ANALYSIS ON CRYPTO

By Profittrader | MARKET SIDE | 23 Oct 2024


Making analysis on crypto [ and other tradable asset ] sometimes could be so challenging, especially to new traders/ investors. But there are proven ways to do this which can reduce the tress and build confidents for a more favorable investment opportunity and making of good financial decisions. So we will be looking at five[5] proven ways you can make good analysis;

1] **MAKERT SENTIMENT: **consider looking at the overall market sentiments or you can call it investors sentiment, such as FEAR & GREED index, trading volume; high trading volume indicates strong interest on the trend by market participant, this could be strong signals to get along with. consider also social media trends.

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**2] TECHNICAL INDICATORS: **Although its sometimes boring to be staring the chart with a lots of indicators, but then it's another good way of analyzing the market. moreover, there are some traders who trade the market only by following indicators and they record success on their trading. Indicators like; Relative strength index [RSI], moving averages [MA] and moving average convergence divergence [MACD]. all this are good indicators that can help with analyzing the market.

 

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**3] PRICE TRENDS: **You all know the popular saying; "the trend is your friend until it bends", ok really cool! this isn't just a saying. the trend is really your friend and if you want to analyzed the market, then its best to follow the trend, both on daily, weekly and monthly time frames. You can really catch the bigger picture and know what the big boys are doing, giving you opportunity to join them.

**4] NEWS AND EVENT: **Alright cool! to some people this is damn tiring! scanning through some news channels to find a perfect event that might lead to a significant moves in the market is really some shit. TO me, this isn't really a perfect approach, but we are different traders with different views and goals. So news also can help a lots to catch some good moves by staying updated.

**5] MARKET CAP: **It is best to understand that market cap plays a good role in determining a good investment. while getting into an investment early with smaller market cap can offer a profitable returns significantly, it also carries a significant risk. always do a proper research before getting into an investment with a low market cap. I think the higher the market cap the better. overall, DO YOUR OWN RESEARCH. That will give you confidence in the market.

So your read this piece to the end ? wow!! congratulations to you! you will do well to leave a thumbs up. Thank you!

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Profittrader
Profittrader

A writer, a trader and a market Analyst


MARKET SIDE
MARKET SIDE

This blog is all about market analysis and predictions of what might likely happen in the market. My dealings are mainly on cryptocurrencies, Gold and Euro/usd. Please understand that all the analysis on the blog is for educational purposes only, and does not constitute any investment advices. Therefore make your own research before taking actions on analysis found on this blog.

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