INVESTING IN CRYPTOCURRENCY

It so amazing that the world is now in new era of technology , which is called BLOCKCHAIN.

Here ,we are trying to decentralized everything in the world at large and making it easy for people to have control on their income .

Blockchain is a new and better technology that has come to stay without been control by government which gives absolute power to the people ,

But in trading the coins which are Bitcoin and altcoins it involve so much volatility which has made some people think is very unusual and very risky to get into , but it has some basic analysis that need to be followed for better understanding and low risk .

There are three ways to determine what the volatile could be in range of downtrend and uptrend , which are .

1. technical analysis
2. fundamental analysis
3. manipulation

Let talk about the three points stated up there.

1. TECHNICAL ANALYSIS :- this is an area where we look at past to know the future by working majorly on our chart of every minute, hours, days and months to determine what could happen in future of the coin, we use so many tools in this regards to determine the price changing and when it may likely be downtrend or uptrend.
   Some of the tools are
   A) Moving average convergence divergence "macd" which show us the probability of next move with histogram chart and on various time base like 5min, 10min to month chart.
   B) Moving average "MA" which is dividend in to three part such as I) simple moving average ii) weighted moving average ii) exponential moving average
   C)Relative Strength Index - "RSI" is a momentum indicator developed by noted technical analyst Welles Wilder, that compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security.
   D) Fibonacci retracement is a method of technical analysis for determining support and resistance levels. They are named after their use of the Fibonacci sequence.
   E) Bollinger band is plotted two standard deviations away from a simple moving average. Because standard deviation is a measure of volatility, when the markets become more volatile, the bands widen; during less volatile periods, the bands contract

2. Fundamental analysis When conducting fundamental analysis on a coin, you have less metrics to analyze compared to when performing analysis on traditional stocks.

You can get to know the coin through their site and social media , like Reddit , Twitter , discord, telegram, slack etc. And look out for two metric to know if the coin is worth buying or invest in, by seeing the tones in the community , getting to know the people in the group if their comment is negative or positive toward the community , then you know if you are in the right place to invest .

1. Manipulation is kind of activities going on in the market where the price of a coin is been hype by some whale or dump to reduce the value when some are holding and getting in to lost, by the result of the manipulation.

Thank you all for reading and I hope this help .

You can follow me @skymate for more question on how to get started in trading cryptocurrency.