Our main goal is to guide you through the process of joining the cryptocurrency world. We believe that we are exceptional in the way we present the information, analyze the market, and explain the fundamentals. We plan to help you with cryptocurrency investing and trading by using both technical and fundamental analysis.
Technical Analysis studies the price movement on a financial chart. We can think of it as a sort of framework that traders use to study and make use of the price fluctuations in the market. Some of the most common Bitcoin patterns include “head and shoulders”, “triangles”, and “Fibonacci retracement”. Compared to the fundamental analysis, technical analysis focuses almost exclusively on price actions. “Pumps” and “dumps” are ultimately caused by the rational emotions of the people holding an asset. Some experts would argue that technical analysis is the most accurate way to trade cryptocurrency, given that the average cryptocurrency holder is exponentially more irrational than Wall Street investors.
Using some objective method of calculation to find the intrinsic value of an asset. In order to make a good fundamental analysis and write it in our e-theses, first you need to know the key basic concepts in blockchain technology such as decentralization, scalability, and blockchain itself. Researching the particular cryptocurrency is an essential part of the whole process. Other important aspects of the fundamental analysis include researching the team behind the coin, observing their community and their partners, as well as studying the supply and demand of the token and the competitiveness of the market.
What is a blockchain?
A blockchain is a chain of blocks that contains information. It can also be referred to as a distributed ledger that is essentially open to everyone. Once a data has been saved inside a blockchain, it is immensely difficult to manipulate and change it. The Bitcoin blockchain itself stores the details about a transaction in each block such as the sender, receiver and amounts of coins.
What is Tether (USDT)?
Tether is the most widely used stablecoin that is pegged to the US dollar. Hence, it is not affected by the price movement in Bitcoin or in other coins. Most traders swap their coins for USDT during Bear Markets when prices are falling in order to avoid further dips of the market and to store their “money” on the exchange without the need to pay for transaction fees or some other storage fees.
What is Bitcoin halving?
The Bitcoin halving occurs when the reward of mining Bitcoin blocks is cut in half. Bitcoin launched on 3 January, 2009 and its first halving happened in 2012 and the block reward has been cut from 50 BTC to 25 BTC. During the second halving in 2016, the reward for mining bitcoin blocks was cut once again from 25 BTC to 12.5 BTC. In 2020, the third halving occurred where the reward has been cut to 6.25 BTC. Eventually, more halving will occur with an expected 4 years span between one another. As of today, around 18,500,000 Bitcoins have been mined and there is a “ceiling” of total of 21,000,000 BTC that will be mined by the year of 2140. Statistically, the price of bitcoin tends to go drastically up in the months after each halving period.
Long-term investing vs. Short-term investing (trading)?
Long-term investing would mean that you buy a cryptocurrency and holding it for longer time period. Usually, long-term investors choose to invest in these coins that have the largest market capitalization which are Bitcoin and Ethereum as of June, 2021. Short-term investing or simply called trading occurs when a person buys a coin and then try to sell it for a small profit in the upcoming days. Trading has two most common strategies – swing trading and day trading. Swing trading occurs when you buy a cryptocurrency, hold it for several days and then sell it either on a profit or on a loss. Day trading is when people buy a coin and then get rid of it until the end of the day or in the first 24 hours of acquiring it.