Cryptocurrency: Basic analysis for crypt – key indicators that you can see
The world of cryptocurrency has undergone a remarkable increase in popularity in the past ten years, and many investors and dealers who are pushing themselves in this new and not tested market. As with any investment option, it is important to carry out in depth research and to apply a fundamental analysis when evaluating the cryptocurrency potential.
What is cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses safety encryption and is decentralized, which means that it is not controlled by any government or financial institution. The best -known example of cryptocurrency is Bitcoin (BTC), which was created in 2009 as an open source software project.
Key features of cryptocurrencies
Before we immerse yourself in the basic analysis, we examine the key features of the cryptocurrencies:
- Limited offer : Most cryptocurrencies have a limited supply of coins or tokens to ensure that their value cannot inflate artificially.
- Decentralized : The cryptocurrencies work in a decentralized network in which no individual facilities check the center flow.
- Blockchain technology : Each transaction is recorded in a public master book called Blockchain, which enables transparent and safe transactions.
- Digital property : Ownership of cryptocurrency is digital and enables investors to safely archive their activities online.
Basic analysis: key indicators that you can see
When evaluating the potential for cryptocurrencies, the basic analysis becomes crucial in order to understand the proposal for the following value. Here are some important indicators:
- Price movement : Analyze the price movement of a cryptocurrency over time to identify trends and models.
- Technical indicators : Use technical indicators such as mobile media, RSI (relative resistance index) and Bollinger ligaments to evaluate the feeling of the market and the potential purchase/sales signals.
- Basic analysis : Examine factors such as sales growth, the basis of the users, the acceptance rate and the competition panorama to evaluate the sustainability of a cryptocurrency.
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Regulatory environment : remain informed about the regulatory developments in the target markets, since changes to the laws or regulations can have significant effects on the value of cryptocurrencies.
- Safety : Make sure that the following technology is safe and resistant to hacking attacks.
Bitcoin analysis (BTC): A study case
In order to illustrate the importance of the basic analysis, we examine Bitcoin (BTC), one of the most exchanged cryptocurrencies:
* Price movement
: BTC has constantly exchanged a limited area with considerable prices in 2017 in the past ten years.
* Technical indicators : Medium Mobile and Bollinger tapes indicate that Bitcoin will probably continue his upward tendency, led to an increase in adoption and institutional investments.
* Basic analysis : The growth of the Bitcoin revenue from 2009 to 2020 was $ 14.3 billion, while the basis of users extended to over 70 million active addresses.
* Regulatory environment : Despite regulatory challenges, Bitcoin remains a popular choice thanks to its decentralized and safe nature.
* Safety : The decentralized architecture of the Bitcoin network guarantees that transactions are manipulated.
Other important actors on the cryptocurrency market
While Bitcoin was the most important cryptocurrency, other remarkable players are:
- Ethereum (ETH) : A popular blockchain platform with a strong ecosystem for developers and a growing introduction.
- Litecoin (LTC)
: A faster and lighter alternative to Bitcoin with a dedicated user base.
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