📊 Cryptocurrency Trading Basics: Technical Analysis 📈
Technical analysis evaluates investments through statistical analysis of market activity 📉. It focuses on price charts and indicators to identify patterns. Unlike fundamental analysis, it doesn't measure underlying value but uses historical price data to predict future movements 📅.
Key Concepts:
- Market Discounts Everything: Prices reflect all information 💡.
- Price Moves in Trends: Future movements follow trends 📉.
- History Repeats Itself: Past data predicts future trends 🔄.
Learning & Practice:
Continuous learning and practice are essential 📚. Engage with resources, practice extensively, and contribute your insights.
Technical analysis evaluates investments through statistical analysis of market activity 📉. It focuses on price charts and indicators to identify patterns. Unlike fundamental analysis, it doesn't measure underlying value but uses historical price data to predict future movements 📅.
Key Concepts:
- Market Discounts Everything: Prices reflect all information 💡.
- Price Moves in Trends: Future movements follow trends 📉.
- History Repeats Itself: Past data predicts future trends 🔄.
Learning & Practice:
Continuous learning and practice are essential 📚. Engage with resources, practice extensively, and contribute your insights.
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Trading Tip of The Day
The Risk/reward Ratio Is Usually Unfavorable For New Longs At The 70 RSI Level On A Chart.
Here's a quick guide on Doji candlestick patterns in trading:
1. Abandoned Body Top - Bears take charge after an uptrend.
2. Long Legged Doji - Market is indecisive; could go either way.
3. Shooting Star - A potential bearish reversal after an uptrend.
4. Hanging Man - Possible bearish sign when it appears after an uptrend.
5. Morning Doji Star - Bullish reversal after a downtrend.
6. Evening Doji Star - A bearish reversal pattern.
7. Hammer - A bullish signal after a downtrend.
Stay informed and trade wisely!
1. Abandoned Body Top - Bears take charge after an uptrend.
2. Long Legged Doji - Market is indecisive; could go either way.
3. Shooting Star - A potential bearish reversal after an uptrend.
4. Hanging Man - Possible bearish sign when it appears after an uptrend.
5. Morning Doji Star - Bullish reversal after a downtrend.
6. Evening Doji Star - A bearish reversal pattern.
7. Hammer - A bullish signal after a downtrend.
Stay informed and trade wisely!
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Crypto Speak: Bear trap and bull trap
We may be in a “bull trap” right now: this is when the market starts to grow and everyone thinks that the growth is unstoppable. People buy crypto in the hope of growth, and then the “trap” collapses—i.e., the market rolls back and traders lose money.
Similarly, with a “bear trap,” when the market falls, traders open short positions, but investors still won’t buy the coins because they know that prices will dip even lower.
Of course, when the market suddenly starts to rise at this moment, the bear trap takes hold.
We may be in a “bull trap” right now: this is when the market starts to grow and everyone thinks that the growth is unstoppable. People buy crypto in the hope of growth, and then the “trap” collapses—i.e., the market rolls back and traders lose money.
Similarly, with a “bear trap,” when the market falls, traders open short positions, but investors still won’t buy the coins because they know that prices will dip even lower.
Of course, when the market suddenly starts to rise at this moment, the bear trap takes hold.
Crypto Vs. Stock➡️
🟢What is cryptocurrency?
In simple terms, cryptocurrencies are digital currencies powered by blockchain technology. They rely on cryptographic techniques to secure and verify transactions and are typically used as a medium of exchange and a store of value. Most cryptocurrencies run on decentralized networks, and their market value is driven by supply and demand.
🟢What is a stock?
Stocks represent partial ownership of equity in a business, and they reflect the value of a functioning company. Sometimes, the owner of a stock is also ennoscriptd to a share of the company's profits in the form of a dividend. The value of a stock can move according to the company’s performance and other factors such as relevant news announcements.
🟢What is cryptocurrency?
In simple terms, cryptocurrencies are digital currencies powered by blockchain technology. They rely on cryptographic techniques to secure and verify transactions and are typically used as a medium of exchange and a store of value. Most cryptocurrencies run on decentralized networks, and their market value is driven by supply and demand.
🟢What is a stock?
Stocks represent partial ownership of equity in a business, and they reflect the value of a functioning company. Sometimes, the owner of a stock is also ennoscriptd to a share of the company's profits in the form of a dividend. The value of a stock can move according to the company’s performance and other factors such as relevant news announcements.
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You can buy cryptocurrency on exchanges: centralized (CEX) or decentralized (DEX).
CEX exchanges are managed by organizations that oversee all operations and provide maintenance and security. User tokens are stored in exchange wallets. There is a commission for trading. When registering, you need to confirm your phone number and email. To work, as a rule, you need to undergo KYC/verification: confirm your identity using a passport/international passport/driver’s license. Many of these exchanges provide the opportunity to buy tokens for fiat (rubles).
DEX exchanges work differently. Coins are exchanged for them without intermediaries. A commission is charged for the exchange. There is no need to register here; to use it you need to connect your wallet (click connect wallet and enter the wallet password). Coins will be transferred from wallet to wallet. For each transaction, the wallet will request permission to confirm the operation. DEX is more difficult to use.
CEX exchanges are managed by organizations that oversee all operations and provide maintenance and security. User tokens are stored in exchange wallets. There is a commission for trading. When registering, you need to confirm your phone number and email. To work, as a rule, you need to undergo KYC/verification: confirm your identity using a passport/international passport/driver’s license. Many of these exchanges provide the opportunity to buy tokens for fiat (rubles).
DEX exchanges work differently. Coins are exchanged for them without intermediaries. A commission is charged for the exchange. There is no need to register here; to use it you need to connect your wallet (click connect wallet and enter the wallet password). Coins will be transferred from wallet to wallet. For each transaction, the wallet will request permission to confirm the operation. DEX is more difficult to use.
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🌐 Beginner's Guide to Cryptocurrency
🔹 What is Cryptocurrency?
A digital or virtual currency secured by cryptography, enabling secure, peer-to-peer transactions without relying on banks.
🔹 Blockchain Basics
Cryptocurrency transactions are recorded on a blockchain, a decentralized ledger ensuring transparency and security.
🔹 Types of Blockchains
1. Public: Open to everyone (e.g., Bitcoin).
2. Private: Restricted access.
3. Hybrid: Combines public and private features.
4. Consortium: Controlled by a group of organizations.
🔹 Buying Crypto
Use trusted exchanges like Coinbase, Binance, and Gemini.
🔹 Crypto Wallets
Essential for storing crypto securely. Options include Phantom, MetaMask, and Ledger.
🔹 What is Cryptocurrency?
A digital or virtual currency secured by cryptography, enabling secure, peer-to-peer transactions without relying on banks.
🔹 Blockchain Basics
Cryptocurrency transactions are recorded on a blockchain, a decentralized ledger ensuring transparency and security.
🔹 Types of Blockchains
1. Public: Open to everyone (e.g., Bitcoin).
2. Private: Restricted access.
3. Hybrid: Combines public and private features.
4. Consortium: Controlled by a group of organizations.
🔹 Buying Crypto
Use trusted exchanges like Coinbase, Binance, and Gemini.
🔹 Crypto Wallets
Essential for storing crypto securely. Options include Phantom, MetaMask, and Ledger.
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🚀 Top Ways to Earn Money in Crypto 🚀
1. Trading: Day trading, swing trading, and arbitrage.
2. Investing: HODLing and participating in ICOs/IDOs/IEOs.
3. Staking: Earn rewards by staking in PoS and DPoS networks.
4. Yield Farming & Liquidity Mining: Provide liquidity to DeFi platforms.
5. Mining: PoW mining and cloud mining.
6. Earning Interest: Deposit crypto in lending platforms.
7. Airdrops & Forks: Get free tokens from projects.
8. NFTs: Buy, sell, and create digital assets.
9. Affiliate Programs: Earn commissions by promoting crypto services.
10. Freelancing: Get paid in crypto for your services.
🔒 Tips:
- Do your research 📚
- Manage your risks ⚠️
- Stay secure 🔐
- Follow regulations 📜
Happy earning! 💰🚀
2. Investing: HODLing and participating in ICOs/IDOs/IEOs.
3. Staking: Earn rewards by staking in PoS and DPoS networks.
4. Yield Farming & Liquidity Mining: Provide liquidity to DeFi platforms.
5. Mining: PoW mining and cloud mining.
6. Earning Interest: Deposit crypto in lending platforms.
7. Airdrops & Forks: Get free tokens from projects.
8. NFTs: Buy, sell, and create digital assets.
9. Affiliate Programs: Earn commissions by promoting crypto services.
10. Freelancing: Get paid in crypto for your services.
🔒 Tips:
- Do your research 📚
- Manage your risks ⚠️
- Stay secure 🔐
- Follow regulations 📜
Happy earning! 💰🚀
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What is funding in crypto trading? 💸
In cryptocurrencies, funding refers to the funding rate that is redistributed among traders holding positions in perpetual futures.
Funding is a periodic payment/write-off for traders with open positions in perpetual futures, which allows them to compensate for the long-term difference between the price of the underlying asset and the derivative contract.
The need for funding arose from the idea of perpetual futures, which have no maturity and can be held indefinitely. Therefore, to compensate for the difference in the price of the asset and the contract, a financing rate mechanism was launched.
Crypto Trends📈
In cryptocurrencies, funding refers to the funding rate that is redistributed among traders holding positions in perpetual futures.
Funding is a periodic payment/write-off for traders with open positions in perpetual futures, which allows them to compensate for the long-term difference between the price of the underlying asset and the derivative contract.
The need for funding arose from the idea of perpetual futures, which have no maturity and can be held indefinitely. Therefore, to compensate for the difference in the price of the asset and the contract, a financing rate mechanism was launched.
Crypto Trends📈
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What is a margin call?
Margin Call is a term used in financial markets that refers to a situation where a broker or exchange requires an investor or trader to provide additional funds to maintain collateral levels on open positions as part of leverage or margin trading.
Margin trading allows traders to use borrowed funds to increase purchasing power and potentially increase profits on trades. However, this also increases risk because if the market moves unfavorably, the participant could lose more than their initial investment.
If the value of an investment in a margin account falls to a certain level, the broker will usually contact the investor and warn the investor that they will need to top up the account or close out some positions to restore the required margin level. This is called a “margin call” or “margin call request”.
If a trader is unable to deposit the required funds or close positions, the broker has the right to automatically close positions at its discretion to reduce the risk of loss for itself and its clients.
Crypto Trends
Margin Call is a term used in financial markets that refers to a situation where a broker or exchange requires an investor or trader to provide additional funds to maintain collateral levels on open positions as part of leverage or margin trading.
Margin trading allows traders to use borrowed funds to increase purchasing power and potentially increase profits on trades. However, this also increases risk because if the market moves unfavorably, the participant could lose more than their initial investment.
If the value of an investment in a margin account falls to a certain level, the broker will usually contact the investor and warn the investor that they will need to top up the account or close out some positions to restore the required margin level. This is called a “margin call” or “margin call request”.
If a trader is unable to deposit the required funds or close positions, the broker has the right to automatically close positions at its discretion to reduce the risk of loss for itself and its clients.
Crypto Trends
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