Have you been searching for how to analyze cryptocurrency? You are lucky because I am writing this article after a huge experience with cryptocurrency. After reading this article you got the skill to analyze cryptocurrency and many more surroundings knowledge.
Before writing this article I have very much researched what is the main problem that beginner faces during analyzing cryptocurrency. I use all this research data to improve my article so I am sure you must get value in this article. Let’s start.
How To Study A Cryptocurrency, Its Momentum, And Volatility
Ever since cryptocurrency has been legalized in India, the craze for cryptocurrency has been increasing in India. Everybody wants to invest in cryptocurrency. But they do not know how cryptocurrency is analyzed to invest in cryptocurrencies. In this post, we are going to show the technical way of analyzing cryptocurrency, which you can also call technical analysis of cryptocurrency.
Using this, you have to enter where in cryptocurrency and at which place to exit, and what to keep the stop loss. You will know about all these things beforehand and you will be able to make a strategy and invest in any cryptocurrency. So let’s start the post.
Technical analysis is the best way to analyze cryptocurrency. Most investors use technical analysis as the volatility market of cryptocurrencies can be avoided by using technical analysis. This allows you to anticipate in advance how long to stay in cryptocurrency. If the best platform to do technology is tradingview.com.
I myself use tradingview.com, which is used to analyze shares in the stock market, analyze the currency in the forex market, and analyze cryptocurrency in the cryptocurrency market. There are many more facilities available here, using which we can improve our trading and investing skills further. Now we are going to talk about this topic, how will we use technical analysis to analyze cryptocurrencies?
Steps To Analyze Cryptocurrency In 2022
- Step-1. Open Any Browser And Search “Trading View”: To analyze cryptocurrency, first of all, you have to open any browser and search “trading view” in that browser.
- Step-2. Go On TradingView.com And Click On Chart: Now go to tradingview.com and there you will find a tab of the chart on which you have to click. After this, the tab of the chart will open in front of you.
- Step-3. Make A Watch List Of Cryptocurrency: When you go to the chart tab, after this you will have to create a watch list of cryptocurrencies, using which you will analyze the cryptocurrency, for this, I have given you below where you will get the list of cryptocurrency
- Step-4. Add Cryptocurrency To Watch List: To get a list of many cryptocurrencies, you have to go to Coin Market Cap and find the name of the cryptocurrency from there and add a lot of cryptocurrencies to your watchlist. As for Bitcoin”BTC+USDT=BTCUSDT”, Ethereum”ETH+USDT=ETHUSDT”
- Step-5. Start Analyze With Technical Analysis: Once you have added a lot of cryptocurrencies to your watch list, after that you can analyze the cryptocurrency one by one using technical analysis and according to your strategy you can designate the entry and exit point in it.
How To Handel Cryptocurrency’s Momentum, And Volatility
Due to the very high volatility in cryptocurrency, investing in it is very risky, so you should always invest 5 to 10% of your portfolio in cryptocurrencies, and some of the main ones when you are doing technical analysis invest in cryptocurrency. The aspect that you should remember, we have given below.
The Following Key Points To Handel Cryptocurrency’s Momentum, And Volatility
- One should always invest for a long time in cryptocurrency.
- The time frame of 1 month, 1 week, 1 day and 4 hours should be used while doing technical analysis in cryptocurrency. Do not use a shorter time frame than this.
- Invest in a cryptocurrency that is always performing well.
- Always be alert after investing in cryptocurrency. Whenever the cryptocurrency comes near your stop loss, then exit after exit confirmation.
- Invest only 5% to 10% of your portfolio in cryptocurrencies.
- Do not invest your entire capital in a single cryptocurrency. Create a diversified portfolio.
All the above points are very important, read them all carefully and use them to invest in your cryptocurrency, it will help to improve your portfolio.
Conclusion
In this post, we talked about cryptocurrency, how to analyze cryptocurrency how to invest in cryptocurrency, and also talked about many important things, what time frame to follow to invest in cryptocurrency needed? What percentage of your portfolio should you use? Many more questions related to this have to be answered. If you liked this post, then share it so that your friends also get to know about it. If there is any question related to this, then definitely ask in the comment.
I am a share market expert for the last five years. I have expertise in technical analysis, and fundamental analysis of stocks, and assets. On this website, I write content like analysis of shares, predict future targets of shares based on analysis, simplify technical analyses, and intraday trading.