Basically, been reading candlestick charts for years and lost lots of money before I started developing a strategy, having the self-discipline to stick to it and make a profit.
You need to have a sincere interest in trading any asset on any exchange because it takes work.
And Crypto-currencies are a new asset class which is EXTREMELY volatile, UNREGULATED and yes,… Volume and aggressive price movements provide an environment for potential but hold a HUGE risk of loss.
Few quick tips:
1. Learn to read and work with candlestick charts.
2. Always trade on a SPOT (never trade on a margin)!
3. Don’t get too caught up in reading technical data (like in the graph above demonstrating a few common technical indicators – MACD, RSI, Boll Bands) – The fundamentals are equally important (unless you’re day-trading, which I don’t recommend in the beginning).
Fundamental Analysis in Crypto involves looking at:
a): The Blockchain’s ‘White Paper’.
b): Reading the Audit reports (on ‘GitHib’) for security issues in the Blockchain’s software code.
c): Looking at partnerships with companies/other chains.
d): Following media releases on upgrades (e.g. token releases, hard-forks) – TWITTER is essential!
e): Looking at the dev team behind the Blockchain and the main stake holders.
f): Establishing real-world use cases for the software.
g): Looking at which wallets are holding the token or coin (if data is available) – or in other words – token release, distribution and burn… Basically understanding how supply and demand work for each particular chain.
This information should be in the Blockchain’s website docs; and token holder data (for Ethereum tokens) is available here: https://etherscan.io/
Yep, if you’re IT competent then you’re almost halfway there… 🙂
If you haven’t yet signed up to TradingView.com (or even if you have)… Maybe consider using this referral code to open up a new account or before you decide to upgrade:
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One quick screenshot to help you get an understanding of one way to co-relate useful data on a chart.
The above chart demonstrates the price movements of 6 different pairs and indexes, represented as a percentage since the reference date: 12pm July 28th, 2020 (+10GMT).
The main focus asset of this chart is the price of Gold (the commodity Gold not a coin 😂)
I’m comparing it to Silver (as an ‘Area Chart’) – represented in grey.
Oil (as an ‘Area Chart’) – represented in red.
NASDAQ – Index which follows bluechip US tech stocks (as a ‘Line Chart) represented in red.
SPX – Index which follows the top US stocks by market-cap (as a ‘Line Chart’) represented in light blue.
BitCoin (as a ‘Line Chart’) represented in orange.
Good luck, if you have any questions please don’t hesitate.
Be very careful of scams and ‘crap-coins’ (most of them are crap) 😂
Coin Analysis:
Token and Blockchain Explorers:
https://etherscan.io/gastracker
Great resource for data comparison and taking a look at what the big investment funds are buying:
https://messari.io/chart/btc-vs-traditional-assets-15BF97E8
Telegram is to 2020 what IRC was to 1995… Yes, there’s always a degree of ‘spamming’ on ‘Chat’ software but lots of these rooms (or ‘channels’) are well regulated by moderators.
Above all else, welcome to the community.
Please check back regularly as I’ll soon start publishing and analysing trades.
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Follow me on Twitter: @SonnieAbdalla
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