Addiction
What do you do when you realize you suffering from addiction... Cause Its been just a week away from steemit and am feeling so sick...
WTF, am I getting addicted to the steemkush...
Lord, help my soul!!!
Zoom ZoOm zOOm, Ever wondered what its like to be a crypto expert or analyst, or pondered on what this crypto experts use in speculating the market or how come they are so good with forecasting with just candlesticks and some look stupid lines on chart and they make it seem so magical or probably make you look stupid :(, or how they interprete the news to detect where the next price movement will be headed to...
Then this is the right shit for you.
ooh! please dont puke on me, cause i bet you, this shit is so different from the usual shits you always get...
In this publication, we will be taking into review and detailed guides on the concept and implementation of the various Trading analysis, how to deposit and withdraw on your wallet or exchanges, how to create/give and take crypto trades signals.
Here we are again on the second article of the series, if you just joining us for the first time then i recommend, nope nope nope, not recommend, you have to check out the first bomb and introduction, here>> click click click
After reading that, it shouldnt be hard for you to join us with the flow...
The IDEA....
Napoleon Hill once said:
First comes thought; then organization of that thought, into ideas and plans; then transformation of those plans into reality....
Trading analysis in general is all about IDEAS, we pick ideas from the news, through discussion, from price actions, from the masses sentiments, from everywhere and anywhere related to the market...
Ideas gathered from technical sources are classified as Technical Analysis, those gathered from News, Media, Economic Datas, and statistics are referred to as Fundamental Analysis and Lastly those from mere observation and human sentiments or beliefs are referred to as Sentimental Analysis...
Putting together the various ideas gathered into a well organized plan or fact or structure is what enable us make a standard analysis of the market with more accurate precision and market forecast, however, its necessary to note that:
- The analysis of the market no matter how precised and accurate you are is always on the edge of 50-50, you are as right as much as you are wrong, what matters is how consistent you are in being right and keeping your profit above your losses...
Its business and just like every other business there are bound to be profits and losses.- The current state of the entire crypto market is relative to the price movement of BTC although individual coins may surge as well but due to BTC generality some price fluctuations and manipulation lookalike may occur.
- A wide variety of Cryptos if not all are calculated in satoshis and thus when the BTC value of Bitcoin is low though the coin had a good satoshi growth its relative USDT growth will still be low
Fundamental Analysis...
Fundamentals analysis as earlier described is a method of evaluating the crypto markets or specific crypto currency in an attempt to assess its intrinsic value, via collective informations on related economic, financial, and other qualitative and quantitative factors such as which may be macro or micro in terms of the crypto ecosystem at large or the company backing up the token in particular as well as some other financial conditions.
The end goal of fundamental analysis is to produce a quantitative value that an investor/trader can compare with an assets/coins current price, thus indicating whether the coin is undervalued or overvalued.
Trading with fundamentals...*
Coin Swap...
When trading with fundamentals, investors/traders look for current or future events which are set to happen in a crypto project.
illustration 1...
Lets take into consideration, TRON- (TRX), when tron announced the proposed upgrade to its mainnet from its testnet, fundamentalist will immediately put into consideration for a sharp growth in price, being that the upgrade will boost the value of the coin, its scalability as well as its legitimacy and will thus invite more investors thereby boosting the coins price value in the general crypto market, now even though the technical may not have a good chart pattern, price will move irregularly(spikes, gaps,etc) with respect to the fundamentals in place of the coin..
Airdops...
Everyone loves FREE money and crypto coin airdrop is another means for short term price boost, when taking positions using this as a basis what an analyst takes into consideration, is the value of the airdrop and the ratio as well as the time duration of the airdrop.
Illustration 2
Lets take into consideration the proposed airdrop of Odyssey (OCN), the OCP airdrop for all OCN holders which snapshot is set to occur on the 1st of August 2018 and last for 50months at a ratio of 1:1, in essence for every OCN you hold you get 1 OCP, this will be a good boost for the Odyssey OCN token, reasons being, investors or traders who are hodling the coin will tend to HODL for a long term thereby increasing the value via POS- proof of stake, and as well more investors who tend to make more profits via the airdrop will tend to purchase more tokens to earn more free coins and thus more money..
These actions will boost the price and thus help traders determine the short term movement of price.
Coin Listing...
When a coin is said to be listed on a new top exchanger with bigger trading volume and liquidity, there's usually a sudden short term growth in price, this is as a result of the increase in the trading volume of the coin due to the pumps been done after listing, availability of coin for a larger base of traders thereby also increase the trading activity and as well its trading volume.
Illustration 3
Lets take BYTECOIN binance listing as a case study.. Bytecoin was announce to be listed on binance on the 8th of May 2018(in the chart below you can see the effect of the listing)
Hint: Different exchangers have different price for a particular currency, some coins are better traded on some exchangers with greater profit than others, always compare exchanges and keep liquidity in check.
after the listing of bytecoin on binance on the 8th of may we saw an immediate pump in price of the coin and the coin grew over 140% in price within a day after the listing...
Economic and Crypto-Politcal News...
News arising which tends to be relative to the entire crypto market or bitcoin tends to affect price movement of the market, if the news is positive we may see some market growth on the other hand if its negative we will see some red numbers on the market cap.
Illustration 4...
Take into consideration the period at which china placed a ban on bitcoin and stopped the operation of all bitcoin mining company's in the nation, bitcoin dipped to about 20-30% decline in price before recovering later on.
Such negative news which affect the bitcoin price affects the entire crypto as well..
In another case when google and facebook as well as some other social media announced to stopped the advertisement of crypto currencies and ICOs we had a sharp decline of price as a result of imposed fear on the masses and also as a result of decline in publicity outreach.
Such news tends to affect the market rapidly though on a shorter time frame but with great and almost immediate effects.
Hint: Bitcoin price movement affects 90% the price movements of all alts coins
New Project Achievement
The achievement or completion of a new project goals, improvement of services as well as the announcement of some great plans in the crypto ecosystem tends to boost the price expectations of a crypto asset.
Illustration 5
ETN has a proposed plan for the instant POS payment terminal, if this tends to work out it would boost the coin/company's value as investors would be happy with the growth and thus more usage and adoption of the coin as a result of the new achievement or actualization of their proposed plan, on the other hand if it fails then there would be sudden dip and decline in growth as investors may feel insecure about the team and developers of the coin and would thus move their money to another potential coin which they seem worthy.
HINTS: in the decentralized market, price is always determined by the people, so whatever the people trade or value a coin at, in the market tends to move the price of it.
Trading with technicals, the art of price action
to be continued...
Ooops!! so sorry guys, not to make this article too lengthy i'll have to end it here, in the next publication on this series we will be taking into study technical analysis, price action, depositing and withdrawing safely from your exchange, safeguarding your wallet, Psychology and money management, and as well whatever you want me to talk about in the comment section below...
Disclaimer: i am not a financial advisor and all materials and information shared here is only intended for education and entertainment purpose, please ensure to do your own research before taking any investment.
Best regards
Nicholas Ilechie
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