If you want to learn how to analyze cryptocurrency, there are several tools you need to get familiar with. These tools will help you understand the position of the market and make great predictions. One thing you have to understand is that the crypto market is a highly volatile one and if you must get things right, you need to understand the workings of the market and this include how to perform technical analysis cryptocurrency.

If you are new in the cryptocurrency market or searching for crypto-related services, you might get overwhelmed by the graphs, charts, and information presented about different cryptocurrencies, but as you get to understand crypto technical analysis and how the market works, the entire cryptosystem will become simpler and make sense. This guide is meant to expose you to gain a better understanding of the various online price charts, price predictions, and market forecast of different cryptocurrencies. Before we delve further into the world of technical analysis cryptocurrency, let’s gain a better understanding of the term “technical analysis.”


What is a technical analysis?

Many a crypto professional have described technical analysis as the process of using real-world data derived from the crypto market or other top sources and plotting it to forecast its future outcome. Such an analysis will enable you to predict when the market will go up or down. Therefore, you will have a chance to buy when the market price is low and sell as soon as the price gears upward.

(Video) How To BEST Read Cryptocurrency Charts

Several writers have written about the best way to analyze the market for great outcomes, but the fact is that the term “analyzing” is a skill that must be learned through testing, trails and errors, until you finally get it right. The ability to understand the visible elements on a chart and understand how they can affect the price of the cryptocurrency make you a good crypto trader even if there is still room for growth.

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What is a candlestick, and how does it work?

If you want to analyze the crypto market as a writer, one of the first technical analysis, you may have to contend with on a price chart is the candlestick. This describes rectangular shaped objects (either green or red) on a price chart.

The rectangle indicates the gap between a particular coin’s opening and closing balance. If you are searching for the price of a coin for 24 hours time gap, then the candlestick will indicate the difference between the opening price at the bottom and closing price at the top for that day. A reddish candlestick indicates a loss while a green colored candlestick indicates profit or gain for that period.

The volume of sales

This is yet another metric you will see as you examine the price graph. If you are learning cryptocurrency trading to enable you to perfect your writing skills in that field, then a good understanding of how the volume works is necessary. This is also vital when you are searching for crypto trading service on the internet. You will find the literal volume of sales of a particular coin within a specific period (day, week, month) at the bottom of a price chart, often displayed as a column. If you want to deliver a speech on a specific crypto coin and discuss its prospect, the sales volume is a good aspect to highlight. However, you may consider looking for a writer at a speech writing service online to help you with the resources you need.Because sometimes you need to ask for help, rather than do everything by yourself.

(Video) The Only Technical Analysis Video You Will Ever Need... (Full Course: Beginner To Advanced)

Moving Averages

The sales volume and candlestick trend are not the only information you need to predict the movement of a price chart of a specific coin. You need to consider the price movement over a long period, such as days or weeks. It is vital to enable you to know the right time to buy or sell. This is the moving average. There are two types of moving averages when examining a price chart: the simple moving average (SMA) and the exponential moving average (EMA.

  • The simple moving average (SMA)

The SMA indicates the average closing price of a coin over a specific period. For seven days, the average is the SMA of the previous six days, plus that day divided by seven. As the new closing balance is added for each day, the older closing balance for previous days is dropped. Hence, the reason for the frequent up and down movement of the line across a graph. The SMA is considered by many as the best indicator of the moving average.

  • The exponential moving average (EMA)

The EMA is slightly complicated than the SMA that follows a custom pattern. Using a typical seven days example, the EMA does not treat the closing balance equally like the SMA. It weighs previous days based on how close they were in terms of price to the current day. Hence, it assigns more weight to the previous days than other days. Due to the descending importance, it attaches to these days, it is, therefore, more reactionary, which is best for the volatile nature of the crypto market.

So how can the moving average help you understand crypto technical analysis? It shows the level of resistance to selling or buying at a specific price point. If it goes past the moving average, it indicates that the market is going bullish and you should look for opportunities to sell. But when the closing price doesn’t get passed the moving average, it indicates there is a resistance, hence, the reason why more people are selling.

  • Analyzing the trend

With the above information, you are now equipped to analyze the price graph of a particular coin. After successfully analyzing the trend, you should be able to know the right time to buy (on the top) and when to sell to realize some profit (on the bottom).

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The information presented in this article will give you a good head start if you want to learn how to analyze cryptocurrency for a beginner.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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How do you study crypto analysis? ›

Knowing the basics of investment and how cryptocurrencies work can give a better idea.
  1. Review the White Paper. ...
  2. Research the Team. ...
  3. Learn About the Leadership. ...
  4. Get to Know the Community. ...
  5. Understand the Technology. ...
  6. Understand the Vision. ...
  7. Review the Road Map. ...
  8. Research Reputation.
Feb 28, 2023

How to learn technical analysis in crypto market? ›

The following six tools and indicators are usually used to conduct technical analysis when trading cryptocurrencies.
  1. Candlestick Chart. Traders prefer candlestick charts because they show more information about price movement. ...
  2. Support and Resistance. ...
  3. Trend Lines. ...
  4. Moving Average. ...
  5. Relative Strength Index (RSI) ...
  6. Bollinger Bands.
Jun 10, 2022

How do you fully understand cryptocurrency? ›

Cryptocurrency, sometimes called crypto-currency or crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don't have a central issuing or regulating authority, instead using a decentralized system to record transactions and issue new units.

How do I become a good crypto analyst? ›

The primary qualifications for becoming a blockchain analyst are a bachelor's degree in business, finance, or a related field and experience working with blockchain technology. Seek courses during your schooling that expose you to the different ways companies use blockchain in their daily operations.

Which analysis is best for crypto? ›

1. CoinMarketCap: CoinMarketCap is one of the best platforms for crypto analysis. It provides real-time data on cryptocurrency prices, market capitalization, trading volume, and other relevant information. CoinMarketCap also has a news section that provides updates on the latest trends in the cryptocurrency market.

How to learn technical analysis step by step? ›

How to learn technical analysis
  1. Learn the basics. Before you use technical analysis to make informed trading decisions, it's important to understand fundamentals of this discipline and its core concepts. ...
  2. Practice your skills in a controlled environment. ...
  3. Apply your training to real trades. ...
  4. Continue your education.
Feb 3, 2023

How long does it take to learn technical analysis? ›

How long does it take to learn Technical Analysis? Up to 6 months, with 1-2 hours of practice every day. Trading can be easily managed even while working, however, you will need to devote 1,000 days to become a Pro, just as you would for your enterprise to take off and flourish. F&O trading is a serious profession.

How long does it take to learn the crypto market? ›

A few blockchain certifications and courses offer to equip with the requisite blockchain skills in under one month. For complete beginners and fresh tech graduates, it can take longer. Perhaps 5-6 months. So there's no specific time frame within which a person can learn blockchain.

Can you make $100 a day trading crypto? ›

Here's all you need to learn regarding generating income from day trading if you're only commencing out with cryptocurrency. By investing roughly $1000 while monitoring a 10% increase solely on a single combination, it is possible to earn $100 every day in bitcoin.

Which strategy is best for crypto trading? ›

Arbitrage is one of the most popular strategies on the market. It involves buying a coin on one platform and selling it on another using the difference in price between the two platforms. Like scalping, arbitrage tends to generate small profits. Thus, the larger your order size, the more profit you can make.

How do you read and understand crypto market? ›

Understanding support and resistance are one of the most crucial parts of reading a crypto chart. Support levels in charts refer to a price level that the asset does not fall below for a fixed period. In contrast, resistance level refers to the price at which the asset is not expected to rise any higher.

What are the 4 types of cryptocurrency? ›

Q #1) What are the four types of cryptocurrency? Answer: The four major types include utility, payment, security, and stablecoins. There also are DeFi tokens, NFTs, and asset-backed tokens. Of all cryptocurrencies, the most common are utility and payment tokens.

How many people really understand cryptocurrency? ›

32% don't understand crypto well enough

People who haven't invested in cryptocurrencies say that they don't understand it well enough (32%) and that it isn't secure enough (28%). Almost half of global respondents (42%) said crypto is a risky investment, despite the allure of potential short- and long-term gains.

Who is the most reliable crypto analyst? ›

Who is the best crypto analyst? The best crypto analysts are Anthony Pompliano and Alessio Rastani. Anthony is one of the most popular and iconic crypto analysts.

How do I break into crypto as a career? ›

5 steps for starting a career in cryptocurrency
  1. Learn about cryptography. Cryptography, or the study of the secure passage of information, is the basis of cryptocurrency. ...
  2. Familiarize yourself with cryptocurrencies. ...
  3. Evaluate your skills. ...
  4. Network with industry experts. ...
  5. Update your resume.
Jan 26, 2023

What skills are in demand for crypto? ›

Must-Have Blockchain Developer Skills
  • Blockchain Architecture. ...
  • Cryptography. ...
  • Data Structures. ...
  • Smart Contracts. ...
  • Solid Grasp of Cryptography and Security Principles. ...
  • Programming Languages. ...
  • Experience With Distributed Systems. ...
  • Understand Standards and Eco-systems.
Feb 16, 2023

What are the 2 types of crypto analysis? ›

As most market participants are aware, there are two main types of analysis traders use to monitor markets and give them more detailed trade ideas. Technical analysis and fundamental analysis are the main areas of study that can be used for any markets, including new ones like"cryptocurrencies.

What are the three types of crypto analysis? ›

The Three Types of Cryptocurrency Analysis: Fundamental, Technical and On-Chain Analysis.

What is fundamental analysis of cryptocurrency for beginners? ›

Fundamental analysis is the study of economic, financial and other non-quantifiable factors that affect a crypto asset's price. The most important thing to remember about fundamental analysis is that it's not just about whether you think something will go up or down in value; rather, but also about why you think so.

What is best way to learn technical analysis? ›

The best way to learn technical analysis is to gain a solid understanding of the core principles and then apply that knowledge via backtesting or paper trading. Thanks to the technology available today, many brokers and websites offer electronic platforms that offer simulated trading that resemble live markets.

What are the 3 rules of technical analysis? ›

Technical analysis has three main principles and assumptions: (1) The market discounts everything, (2) prices move in trends and countertrends, and (3) price action is repetitive, with certain patterns reoccurring.

How can I learn technical analysis for free? ›

Learn Free Technical Analysis Course
  1. Chart Analysis and Their Importance. ...
  2. Trend Line, Volume, Supports & Resistances. ...
  3. Moving Averages and Their Different Types. ...
  4. Trading with Bands - MAC, Bollinger, Keltner Bands. ...
  5. How to use Trend Lines for Trading. ...
  6. The Pin Bar Setup, Strategy & Rules.

Is technical analysis alone enough? ›

While it is sure that technical analysis cannot assure a 100% success rate or magically high profits- it is however a very thorough study of how to predict equity market share value and thus can be considered a format of trade prediction.

How do traders predict the market? ›

Traders use upward and downward movements of the market to decide whether to buy or sell shares. Sometimes, traders may take calls, based on previous similar trends and share market analysis, to hold on to stocks that have done well in the past.

Where is the best place to learn technical analysis? ›

Best Technical Analysis Courses in 2023
  • Best Overall: Udemy.
  • Best for Beginners: Travis Rose.
  • Best for Learning While Trading: Bullish Bears.
  • Best for Charting Services: StockCharts.
  • Best for Comprehensive Offering: Chart Guys.
  • Best for Learning From One of the Greats: Charting School.

Which trading is best for beginners? ›

The Indian Stock Market is a great place to start investing money, especially for beginners. Moreover, it offers an excellent opportunity for people who want to enter the market without worrying about the technicalities of buying and selling stocks. The stock market in India offers many advantages to investors.

Do professional traders use technical analysis? ›

Technical analysis is not only used by technical traders. Many fundamental traders use fundamental analysis to determine whether to buy into a market, but having made that decision, then use technical analysis to pinpoint good, low-risk buy entry price levels.

How do I study crypto before investing? ›

To learn more about cryptocurrencies, join an online community of cryptocurrency investors and enthusiasts, such as that found on Reddit, to see what the community is discussing. Read the white paper that outlines specific details about the cryptocurrency project that you're considering.

How do I become a pro crypto trader? ›

A successful crypto-trader must understand the relationship between risk and reward. Risk management measures volatility and the likelihood of negative outcomes to a trade. However, a successful trader should never run away from risk because risk and potential returns are positively correlated.

What time of day is crypto lowest? ›

Prices are lower when the market is less busy. Although you can trade cryptocurrencies at any time of day, the market is more active during typical work hours and less active early in the morning, at night, and on the weekends. Generally, cryptocurrency prices start low on Monday and rise throughout the week.

Can you become a millionaire day trading crypto? ›

There are no guarantees that you'll become a millionaire, but if you invest in the right places and hold those investments for the long term, it's still possible to see significant returns.

How much money do crypto day traders with $10000 accounts make per day on average? ›

If you have a trading account of $10,000, a good day might bring in a five percent gain, or $500.

How much can I realistically make trading crypto? ›

How much does a Cryptocurrency Trader make? As of Apr 23, 2023, the average annual pay for a Cryptocurrency Trader in the United States is $113,304 a year. Just in case you need a simple salary calculator, that works out to be approximately $54.47 an hour.

Which crypto trading strategy is best for beginners? ›

Generally, passive strategies are more suitable for beginners aiming for long-term growth and lower risk tolerance. Cryptocurrency has become increasingly popular among investors over the past several years, and it's easy to see why. Cryptocurrency feels more exciting than many of the traditional assets on the market.

What is the most profitable time to trade crypto? ›

Cryptocurrencies are most commonly traded between 8am to 4pm in local time. While the crypto market is 24/7, your trades are more likely to be executed when there is the highest level of activity. Outside of these hours, when trading is lighter, it can be more difficult to open and close trades.

What do most crypto traders use? ›

Pick a crypto to invest in

The majority of cryptocurrency traders put their money into Bitcoin and Ether. However, trading utilizing technical indicators is possible because these cryptocurrencies move more predictably than smaller altcoins. Many cryptocurrency investors put a portion of their money into altcoins.

How do you explain crypto to dummies? ›

A cryptocurrency is a cross between a currency and a digital asset. Like a currency, you can use it to pay for things. Like a digital asset, you can invest in it for long-term gains. You're not buying a currency; you're buying the idea behind the coin, which is supported by an underlying blockchain technology.

What is the best crypto chart? ›

TradingView is by far the most popular charting and technical analysis tool for traders of all markets. In recent years, they have pushed to integrate their tool set with the most popular cryptocurrency exchanges and the results are impressive. Their online charting tools are open to both free users and pro users.

How much do you get taxed on crypto? ›

In most cases, capital gains and losses apply to your crypto transactions. However, there are instances where cryptocurrency is taxed as income, in which case it's subject to a marginal tax rate of up to 37% depending on your income level and filing status.

What is the next big crypto? ›

In that case, you can redeem yourself by checking out these nine next big cryptos, including AiDoge, RobotEra,, EcoTerra, DeeLance, Love Hate Inu and more, that should be on your investment radar in 2023.

What is the difference between a coin and a token? ›

Cryptocurrencies, like BTC or ETH, are the native assets of a blockchain, whereas tokens are created as part of a platform that is built on an existing blockchain, like the numerous ERC-20 tokens that make up the Ethereum ecosystem. This is the key difference between the two classes of digital assets.

What are the four pillars of crypto? ›

Very few projects (if any) have solved for all four pillars of crypto treasury management: diversification, liquidity, cash flow, and governance.

Are people actually rich from crypto? ›

You can absolutely make money through crypto, just as you would trading any other type of asset. But with the extra volatility, there is a higher risk and higher potential profits.

How many people have become millionaires through crypto? ›

Given that the price of Bitcoin has dropped to less than one-third of its maximum value, it is safe to assume that at least 100,000 people were millionaires prior to the 2021 bear market. According to a Decrypt story from March 2020, there were, in fact, close to 95,000 Bitcoin millionaires at the time.

How many people have gotten rich from crypto? ›

Cryptocurrency has made a new group of billionaires. According to Forbes, 19 billionaires have made it rich in the world of cryptocurrency.

What do I need to study for crypto? ›

Evaluate your skills

Many of the most apparent opportunities in this field are STEM positions, like computer engineering, programming, software development and electrical engineering. But there are also cryptocurrency career opportunities in fields like marketing, business and communications.

What are the three types of analysis in crypto? ›

The Three Types of Cryptocurrency Analysis: Fundamental, Technical and On-Chain Analysis.

What to study for crypto trading? ›

Some of the most important topics of these courses relate to:
  • Cryptocurrency basics.
  • Cryptocurrency types.
  • Blockchain technology.
  • Cryptocurrency trading.
  • Technical analysis of cryptocurrencies.
  • Fundamental analysis of cryptocurrencies.
  • Cryptocurrency mining.

How long should I study crypto? ›

A few blockchain certifications and courses offer to equip with the requisite blockchain skills in under one month. For complete beginners and fresh tech graduates, it can take longer. Perhaps 5-6 months. So there's no specific time frame within which a person can learn blockchain.

What skills are required for crypto? ›

Must-Have Blockchain Developer Skills
  • Blockchain Architecture. ...
  • Cryptography. ...
  • Data Structures. ...
  • Smart Contracts. ...
  • Solid Grasp of Cryptography and Security Principles. ...
  • Programming Languages. ...
  • Experience With Distributed Systems. ...
  • Understand Standards and Eco-systems.
Feb 16, 2023

What skills are needed for crypto? ›

Key skills you'll need
  • Blockchain.
  • Business development.
  • Coding.
  • Content writing.
  • Cryptography.
  • Cybersecurity.
  • Data analysis.
  • Financial analysis.
Dec 8, 2022

What are the most important indicators of crypto analysis? ›

⚖️ Some important trading indicators that can help you make decisions are Moving Average (MA), Moving Average Convergence Divergence (MACD), Relative Strength Index (RSI), and Bollinger Band (BB). These are some of the most popular and fundamental indicators in cryptocurrency.

What is a 3 top crypto pattern? ›

A triple top formation is a bearish pattern since the pattern interrupts an uptrend and results in a trend change to the downside. Its formation is as follows: Prices move higher and higher and eventually hit a level of resistance, falling back to an area of support.


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