A good place to start with Fundamental Analysis of a cryptocurrency is asking the simple question – what problem is it trying to solve? This may sound obvious, but it is very easy to be seduced by complex language and ambition, without thinking about what a cryptocurrency does and what real world problem it solves. If… Continue reading What problem is a cryptocurrency trying to solve?
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What is Fundamental Analysis?
What you’ll learn A definition of Fundamental Analysis A framework for analysing future value of crypto projects Ways to quantify ambition & performance of crypto projects The importance of lateral thinking in investing Investing in a cryptocurrency is a very different discipline from Trading in it. Trading attempts to profit from short term Technical Analysis; interpreting… Continue reading What is Fundamental Analysis?
Macroeconomic Indicators
Crypto is generally portrayed as being a challenge to traditional finance. Bitcoin’s use case as an effective store of value means that it should have an inverse relationship to key indicators of the health of the system it is intended to replace. You’ll often hear the phrase ‘safe haven’ asset, for example. The reality is… Continue reading Macroeconomic Indicators
Crypto Specific Data Indicators
One of the difficulties of getting into Trading is the sheer amount of time required to understand the techniques used and find a successful strategy that might work. It is not particularly intuitive and there are some who doubt that Technical Analysis even works. Fortunately, there are different sources of information that can act as… Continue reading Crypto Specific Data Indicators
Common Leading & Lagging Indicators
We’ve already provided one example of each type of indicator. Relative Strength Index (RSI) is a leading indicator as it hints at whether the market is becoming overbought or oversold. Moving Averages, in contrast, rely on historic data and provide a continually updating retrospective view of average price behaviour. On Balance Volume We introduced On Balance Volume in… Continue reading Common Leading & Lagging Indicators
Leading & lagging indicators
What you’ll learn What are leading & lagging indicators? Common examples of each Indicators within crypto transactional data Data Indicators from the wider crypto economy As you start to decipher the world of cryptocurrency trading it might seem that you are overloaded with information and acronyms. At the basic level Learn Crypto’s section on how… Continue reading Leading & lagging indicators
Relative Strength Index (RSI)
Relative Strength Index, usually abbreviated to RSI is a useful indicator of whether a particular cryptocurrency is overbought – overvalued – or oversold – undervalued. It is what is known as an Oscillating Index, as it returns a value on a scale from 0-100. An RSI value above 70 tends to suggest overbought conditions, while… Continue reading Relative Strength Index (RSI)
Moving Averages
A Moving Average is literally the average price measured for a fixed period that moves over time. It is best understood via an example. Bitcoins seven day moving average will average the price for the previous seven days and update that over time. A price chart will plot the moving average alongside the actual price… Continue reading Moving Averages
Measuring Volatility
Returning to bitcoin as our example, the amount by which its price goes up and down is measured by Volatility. Volatility is what determines the level of risk you take on in trying to make a successful trade. If you look at a daily bitcoin chart by eye, you’ll see peaks and troughs that look… Continue reading Measuring Volatility
What is Technical Analysis?
What you’ll learn The concept of volatility Understand Moving Averages Understand what Relative Strength Index If you’ve read every article in Learncrypto’s section introducing how to trade cryptocurrency you should, by now, understand two key distinctions. Taking long term positions based on Fundamentals – as an Investor – and short term decisions based on Technical… Continue reading What is Technical Analysis?