Archive for November 2018

The Boom in Crytocurrency and the Result

The cryptocurrency trade is today, in 2017, in full swing around the world. Since the spring of 2017, the cryptocurrency market has seen an incredible increase, for example: the price of bitcoin has increased by nearly 300%, the price of the ethereum has increased almost 30 times, and dash has saw its value grow by 16.5 times.

A few years ago, users placed orders to buy or sell when the cryptocurrency fluctuated by a few dollars, but today, the price of a cryptocurrency is likely to increase or decrease by hundreds of dollars per day. Profits and losses seem more dramatic than ever. However, users will still have the opportunity to take advantage of the fluctuation in the price of cryptocurrencies, but with caution.

  1. Find the average price:

Choose a cryptocurrency that you want to trade. Then divide the amount to be invested into several equal parts and buy the cryptocurrency that interests you every two weeks. Remember, it is important that each share is equal; otherwise you will not be able to find the average price.For more on this visit https://www.amarkets.com/daily-analytics/.

Soon you will be able to determine the average price of the cryptocurrency you have chosen. Maybe it will not be a perfect price, but using such a system, you will determine an average price of cryptocurrency on the market. This is a rather conservative approach to trading.

  1. Pay attention to volatility:

The average volatility of a cryptocurrency is much higher than the volatility of traditional financial assets. This gives us good potential to get a better profit. However, there is also a risk of seeing a deep retracement before the price takes the desired direction.

Thus, it is worth limiting potential trading losses by setting a low limit. And it is very important to calculate the right level. In the case of cryptographic currencies, the daily fluctuation of the percentage points must not exceed three times.

  1. When it drops, it drops:

As statedabove, crypto-currency flows happens to beusually massive and able to reach up to 75% evaluated to the earlier growth trend, since for the ethereum. Bitcoin has been less volatile lately – a correction may be 30 to 50%, while Litecoin may lose up to 60% when it is bearish.

But it is also for these reasons that crypto-currencies are very attractive for users because they are able to recover their value very quickly. As recent history indicates, such events can occur 1 to 3 times a year.

  1. Seasonal Cryptocurrencies:

Strange as it may seem, the story from 2011 to 2017 shows that from the end of February to the end of August, bitcoin remains mainly in a downtrend, and from September to December, it is generally on an uptrend. This is probably related to the increase in commercial activity after the summer and ICO launches.

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