Unlock the secrets of cryptocurrency markets: cryptographic guide, tariff period, technical analysis and economic indicators
The world of cryptocurrency has come a long journey from early 2009. From Bitcoin to Ethereum, Litecoin and Dogecoin, the market has grown exponentially over the years and attracts investors around the world. However, navigation of this complex landscape can be impressive for beginners. In this article, we deepen four key concepts to help you understand and make sound decisions about the cryptocurrency market: cryptography, award, technical analysis and economic indicators.
Crypto
Cryptocurrency is a digital or virtual currency that uses cryptography for secure financial transactions. Decentralized, which means that no government or institution controls it and operates in a co -network called Blockchain. The most well -known cryptocurrencies are Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC). Unique properties, uses and price dynamics of each cryptocurrency.
The Target period
The award period is a period in which the wealth of the cryptocurrency investor is gradually increasing over time. In other words, the longer their cryptocurrency is maintained, the greater their share. This concept helps prevent a quick purchase and retention strategy, which can lead to significant losses if the market fluctuates quickly.
For example, suppose you buy 10 bitcoins at an initial price of $ 1,000 and accept a quarter of a quarter in the next two years. At the end of the first year, his office would be 12 months (3 rooms), but in the second quarter of the year, only 5% of the total share. The gradual growth of the property promotes volatility and allows investors to build a stable portfolio over time.
Technical analysis
Technical analysis is a method to analyze price movements and patterns in the financial markets, including cryptocurrencies. This means studying more images and indicators to identify trends, support and resistance levels, and other market signals. Technical analysts use these tools for informed investment decisions and predict future market movements.
Some general technical techniques are as follows:
- Mobile Averages: Mobile average is a graph that shows the prices of security over time. It is used to soften price fluctuations and identify trends.
- Relative Strength Index (RSI): This indicator measures the amount of recent price changes to determine the marketing conditions on the market.
- Bollinger bands: These lanes represent the province within which prices are likely to fluctuate and provide volatility.
Economic indicators
Economic indicators are indicators that reveal information about the economy, the country’s inflation rate and interest rates. They serve as a reference point for investors and can influence the cryptocurrencies market. Some general economic indicators are as follows:
- Inflation rate: Measured by the Consumer Price Index (CPI) indicates changes in the prices of goods and services.
- Interest rates: Federal Reserve defines interest rates to control inflation, to encourage economic growth or sidewalk inflation.
- GDP growth rate: This ratio measures the full production of goods and services of a country.
Investors can analyze these indicators by several ways that include:
- Mobile averages: They can be used to soften price fluctuations and identify market trends.
- Relative Strength Index (RSI): It can help you detect overcoming or marketing conditions on the market.
- Bollinger Bands: These bands ensure a visual representation of volatility and can help merchants predict price movements.