A veritable rollercoaster of soaring highs and swooping lows, the robust swinging of crypto prices resembles the likes of what you might expect in amusement park rides. While investing can certainly be exciting, watching crypto prices go up and down can be nerve-wracking at times. Well, whoop-de-doo, you might just be in luck when you have a handy overview to help clear things up. With a veritable treasure-trove of options out there to choose from when it comes to cryptocurrencies, it is no wonder that making an informed decision can be challenging.
For starters, it can be hard to know where to start since the market is so large and there are so many different types of currencies on the market. From Bitcoin and Ethereum to Litecoin and Tether, finding the crypto that is most suitable for your specific needs is not always a walk in the park. With the help of a directory like Binance.com, you can easily get a reliable source of information for the latest market prices, 24-hour trading volume, price changes, market capitalizations and links to all kinds of relevant information. The more of an informed decision you can make, the better the outcome is most likely to be.
Predicting Crypto Price Trends
In order to most accurately predict prices, various factors need to be taken into consideration. Some of these factors are overall demand, historical trends, regulatory changes, technological advancements, crypto partnerships and additional information specific to the cryptocurrency in question. More spot-on predictions can be made when weighing these factors in for a more complete picture.
Predicting crypto price trends is of great help when assessing when to enter the market as well as how to best make use of the currency. There are various methods and strategies on how to best predict crypto prices and each has its own benefits and drawbacks. One way to analyze the market is to see it from the framework of technical analysis, fundamental analysis, and sentiment analysis.
Once you have settled upon a suitable methodology, you are ready to dive into the facts and figures. At this point, it is very helpful to take careful notes of your findings so you can use them to organize and track the data. It can also be of interest to read reliable background information to get as informed as possible, such as the United States government’s executive order on ensuring responsible development of digital assets.
Technical Analysis, Fundamental Analysis and Sentiment Analysis
Now for a short and sweet run though on these terms and what they mean in a nutshell. For starters, technical analysis uses statistical trends of prices in past transactions. As this type of analysis is based on the ongoing repetition of specific trends and patterns in regard to crypto prices, experts following this methodology examine the rise and fall of prices along with trading volumes to predict whether cryptocurrency prices will rise or fall and to what degree.
Rather than examining historical precise patterns, fundamental analysis looks at the wider context and the surrounding factors that impact the fluctuating prices. This type of analysis highlights that a cryptocurrency’s value can be inflated or deflated and looks to the more true value.
True to its name, sentiment analysis takes the sentiments and emotions of the participant into the equation by looking at how feelings impact a certain activity or translation. For example, during times of scarcity, there may be compulsive shopping for essentials, or if there is a very strongly trending item on social media, then many people will buy it in excitement.