Don’t you just wish crypto prices were that much more predictable? Knowing when to buy and when to sell is the great superpower we all could ever wish for, but superpowers aren’t common in this world. Still, we believe that by understanding the forces behind crypto markets’ volatility, we can get that much closer to becoming superhuman in crypto trading.
With this in mind, let’s look at the tools that can help you in crypto trading. By utilising the most out of them, your trading decisions stand a real chance to go up a level, and your portfolio sees less red.
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Crypto price prediction 101
Figuring which way crypto prices will go is part of every crypto enthusiast’s daily routine. The simple answer is that there is no silver bullet to guessing what the price of BTC will be tomorrow. Still, there is a lot that can aid us in making the right calls, so let’s divide in and become better traders.
1. Follow the news
The public view of a cryptocurrency and any business goals or partnerships, which could either enhance the growth of a cryptocurrency or cause it to decline, can be obtained from crypto-specific news stories, which can provide helpful information. In general, any relevant news regarding the progress of the cryptocurrency market sheds light on the near future price direction.
2. Pick up the market sentiment from crypto communities.
Picking up the market sentiment from crypto communities can be vital because it can provide insight into the overall perception of a particular coin or project. This information can help traders make more informed decisions and help predict crypto prices better.
For example, positive sentiment in a crypto community can indicate that a coin or project is well-regarded and has strong potential for future growth. Negative sentiment, on the other hand, can show that a coin or project is not well-regarded and may not have as much growth potential. Market sentiment can also be affected by news, announcements, and events in the crypto space, which can provide insight into potential buying and selling opportunities.
3. Watch trading volumes
Trading volumes can provide valuable information about the level of interest in a particular cryptocurrency. High trading volume can indicate a lot of buying and selling activity, which can help confirm a trend or signal potential buying or selling opportunities. Additionally, high trading volume can provide liquidity, making it easier to enter and exit trades. On the other hand, low trading volume can indicate a lack of interest in a particular cryptocurrency, making it more challenging to trade and signaling a potential lack of future price movement. Therefore, watching trading volume when trading crypto is essential as it can provide insight into market sentiment and liquidity.
4. Watch out for press releases of critical projects.
You should always look out for press releases on critical projects. This can hint towards the price change before the news gets picked up by general media. It also helps you stay informed about the projects you have invested in or want to invest in.
It is also important to note that various factors like speculation, hype, FUD, social media influencers, and market manipulation can influence crypto prices. Thus, it is essential to be critical, check the source of information, and consider multiple sources before making any decision.
5. Use trading tools (moving averages and so on)
Crypto trading tools can help you make more informed and profitable trading decisions. Some tools as Gate.io Price, can provide you with real-time market data, such as live crypto price updates and charts, which can help you stay up-to-date on market conditions. Other tools can provide technical analysis, such as indicators and chart patterns, which can help you identify potential buying and selling opportunities. Some trading tools also offer automated trading strategies, which can help you execute trades based on your pre-defined rules and criteria.
6. Don’t spend what you don’t have.
It is generally not a good idea to spend money you do not have, regardless of whether the investment is in cryptocurrency or any other asset. This is because borrowing money to invest in something carries additional risk and the potential for financial hardship if the investment does not perform as well as expected. Additionally, investing money you cannot afford to lose could lead to financial stress and negatively impact your life. Having a clear plan and budget and diversifying your investments is essential. The golden rule of trading is to only trade with 20% of what you have.
7. Choose a crypto exchange you can trust
Choosing a top-tier crypto exchange is essential and it doesn’t matter if you are a newbie or a professional trader. A trustworthy exchange, such as Gate.io Crypto Exchange, will have accurate and reliable pricing data, which will help ensure that your projections are based on precise information. Additionally, good exchanges have robust security measures to protect your assets and personal information. A socially responsible crypto trading platform is always transparent in its operations, whilst the top ones use Proof of Reserves as part of ongoing audits.
Final Words
The cryptocurrency market is moved by a huge number of internal and external factors. A combination of these factors is what the crypto price is made of and it is therefore critical to keep track of as many signals as possible. As a result, using the right selection of indicators to accurately estimate the price of cryptocurrencies offers an accurate image of how the market operates, and the direction it is heading in.