Crypto Market Analysis

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Cryptocurrency has been around for quite some time, and there are several documents and articles on the basics of cryptocurrency. Cryptocurrency has not only flourished, it has opened up as a new trust opportunity for investors. The cryptocurrency market is still young but mature enough to provide enough data for trend analysis and forecasting. Although it is considered the most volatile market and a great game as an investment, it has now become predictable to an extent and Bitcoin futures are proof of that. Many stock market concepts have now been applied to the crypto market with some tweaks and changes. This gives us further proof that many people are embracing the cryptocurrency market every day and that it currently has over 500 million investors. Although the total market value of the cryptocurrency market is $ 286.14 billion, or roughly 1/65 of the stock market at the time of writing, the potential of the market is very high considering the success despite its age and the presence of established financial institutions. markets.

The reason behind this is nothing more than the fact that people are starting to believe in the technology and products that support crypto. It also means that crypto-technology has proven its effectiveness and to such an extent that companies have agreed to put their assets in the form of cryptocurrencies or tokens. The concept of cryptocurrency has had success with Bitcoin. Bitcoin, which was previously the only cryptocurrency, now contributes only 37.6% to the overall cryptocurrency market. The reason for this is the emergence of new cryptocurrencies and the success of the projects that support them. This does not indicate that Bitcoin has failed, in fact the market value of Bitcoin has increased, rather it indicates that the cryptocurrency market has grown as a whole.

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These facts are enough to prove the success of cryptocurrencies and its market. And indeed, investments in the cryptocurrency market are now considered safe, as some invest as part of their retirement plan. Therefore, the next thing we need are the tools to analyze the cryptocurrency market. There are many such tools that allow you to analyze this market in the same way as the stock market which provides similar metrics. Including the market value of coins, stems of coins, cryptocurrencies and investing. Although we think these metrics are straightforward, they provide important information about the crypto under consideration. For example, a high market value indicates a strong project, a high 24-hour volume indicates high demand, and the circulating supply indicates the total number of coins of this crypto in circulation. Another important measure is the volatility of a crypto. Volatility is how much the price of a crypto fluctuates.

The cryptocurrency market is considered to be very volatile and paying at this time can generate a lot of profit or cause your hair to be pulled out. So what we are looking for is a crypto that is stable enough to give us time to make a calculated decision. Currencies like Bitcoin, Ethereum, and Ethereum-classic (not specifically) are considered stable. Since they are stable, they must be strong enough not to lose their validity or simply cease to exist in the market. These characteristics make a cryptocurrency reliable and the most reliable cryptocurrencies are used as a form of liquidity.

As for the cryptocurrency market, volatility goes hand in hand, but it makes its ownership more important, i.e. decentralization. The cryptocurrency market is decentralized, this means that a falling price for one crypto does not necessarily mean a downward trend for any other crypto. Therefore, we are giving ourselves a chance in the form of mutual funds. It is a concept for managing a portfolio of the cryptocurrencies in which you invest. The idea is to spread your investments across multiple cryptocurrencies to reduce the risk if a cryptocurrency starts on a bear.

The concept of index in the crypto market is similar to this concept. Index provides a standard benchmark for the market as a whole. The idea is to choose the best currencies on the market and distribute the investment among them. These selected cryptocurrencies change if the index is dynamic and only takes into account the major currencies. For example, if an "X" coin falls to position 11 in the cryptocurrency market, the index that takes into account the top 10 currencies will no longer consider the "X" coin, but will begin to consider the "Y" coin. Who took his place. Some providers like cci30 and crypto20 have tokenized these Crypto indexes.

While this may seem like a good idea to some, others are against it because there are certain prerequisites for investing in these tokens, so a minimum investment is required. While others, such as cryptos, specify the methodology and value of the index as well as the components of the currency so that an investor is free to invest as much as he wants and chooses. otherwise indexed. Therefore, indices allow you to further even out volatility and reduce the risk involved.

Conclusion

The cryptocurrency market may seem risky at first glance, and many may still be skeptical of its authenticity, but the maturity that this market has reached in the short period of its existence is incredible and sufficient proof of its authenticity. The biggest concern for investors is volatility, as there had been a solution in the form of indices.