The quickest way to start your crypto-trading career is to learn how to do a Fundamental Analysis. As defined by investopedia.com:
Fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts study anything that can affect the security's value, including macroeconomic factors such as the overall economy and industry conditions, and microeconomic factors such as financial conditions and company management.source
For a very speculative market, crypto-currency prices rely mostly on their perceived value.
How do we know then how much a coin is worth ?
Unfortunately, we can't tell for sure... we can only speculate and this interpretation varies from one investor to another. Nonetheless, investors can agree on some economical and technological qualitative analysis of a particular coin. For example, The Law of Supply and Demand, technology innovation, Use Case (coin's utility value) etc. these common concepts normally converge to the same conclusion about the perceived value of the coin regardless of whose perspective.
Finding that convergence point to conclude if a coin is overvalued or undervalued is a trader's honeypot
Here are 3 ways to spot good sources of information:
1. Legitimate and Reputable sources
Try searching a coin in google and you'll see gazillions of references, most of the time only 5% of these results are from reputable sites. And only around 4% are legitimate information. Try to stick with known and reputable sources to shield you from mis-information.
I personally read articles from cointelegraph.com and coindesk.com ... what's yours?
2. Groups/Companies rather than individual sources
The idea of collective intelligence
3. Official Public Announcements
Recently I have been receiving valuable information from the coins that I traded through newsletters (official). I subscribed from these newsletters in the hopes to receive targeted information. True enough I was able to make good calls especially on LISK.
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Thinking the rebrand of luck is causing the rise of price?
at the end of the day, it's a speculative market and most of the time a "rebrand" signals a new development for a project, in fact, when the news broke out on LSK, it rose to about 40-70%, However this movement in price have to be substantiated otherwise, a reverse effect will happen and you lose the investors' confidence on the project.
Interesting to note that while investors buy the coin for a long term investment, there are "traders" who just look out for this price movements oftentimes these are the "day-traders" who after a certain gain would take profit straight away regardless of what coin it is or whatever news they read. Eventually, a pull-back of the price may happen which is actually showing with LSK now sitting comfortably at around 0.002 but still at 40% increase from before the news broke out.
Thanks for this. As a crypto newbie it's hard to figure out what to look out for and where to even start really. I've probably lost thousands because I have no idea.
Thanks for pointing me to the right direction.
You're welcome momi @bearone. I am not really a fan of reading but when I started with crypto-trading I realized I really have to read a lot more than usual. and most importantly only read from legitimate sources. Before I used to just look at the charts then pick a coin without even knowing what is going on around it. I find it very profitable if your look at the bigger picture, something like "looking from outside the box" and combined it with your chart analysis, i'd say 70-30 respectively is a good split in terms of spending time between fundamental and technical analysis.
case-in-point:
http://www.businessinsider.com/bitcoin-price-government-auction-winners-2017-5
if you have time and interest read that article and see how everything is interconnected with the real world.
Thanks a lot for discuss about crypto ..I appreciate to your blog..Carry on your activity...Thanks for sharing ..
thanks and you're welcome :)
Nice information thanks for sharing.
you're welcome
(: (: (~_^)
I have a news to share, I saw this on FB...
What news? Haha
oo nga what news??? lol
Idola jud ani niya oy! Hahaha lodi! How to be you po?
mas idol ka! pila na ka zeros na sa imong account ? LOL
Mas daghan ang zero sa imung account bai oy hahaha
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