Basics of Cryptocurrencies: Necessary Analysis Techniques for Cryptographic Investors
The world of cryptocurrency has exploded popularity over the past decade, and new coins and tokens have appeared every few months. However, with the development of the market, you also need to make a conscious decision. As a cryptographic investor, it is necessary to understand fundamental analysis techniques in making informed investment decisions.
What are the fundamental analysis techniques?
Fundamental Analysis is the process of analyzing a financial company, management team, industry In the context of cryptocurrency, the basis of the analysis includes market assessment, coins or token, as well as its basic technology and development.
Key Concepts Regarding the Basic Foundations of the Analysis
Before immersing in technical analysis, here are some key concepts to understand:
- Market capitalization : Total value of all overdue coins or tokens in a specific cryptocurrency.
- Supply and demand : Balance between Buyers and Sellers Driving the Price of cryptocurrency.
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- Regulatory Environment : Government provisions and provisions regarding transaction and cryptocurrency trading.
- Cryptocurrency Extraction : Transaction Validation Process in the Blockchain Network and Network Protection.
Technical Analysis Techniques for the Basics of Cryptocurrencies
Technical indicators that provide insight into coins or token movement patterns. Here are some basic techniques:
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- Relative force indicator (RSI)
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- Horizers of Support and Resistance
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Example: Bitcoin Fundamental Analysis
For example, let’s analyze the basics of Bitcoin:
- Market Capitalization: About USD 1 Trillion
- Delivery: 21 Million Coins
- Blockchain Development: Decentralized, Open Source and Widely Supported by Programmers
- Regulatory Environment: Provisions issued by the Government regulating cryptocurrency transactions in many countries
- Cryptocurrency Extraction: Proof-of-Work Consensus Algorithm (POW)
Basic Analysis Techniques, We can identify potential option And vice versa,
The best practices regarding cryptocurrency of fundamental analysis
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