Unlocking the secrets of markets with cryptomes: Crypto Guide, Claim Period, Technical Analysis and Economic Indicators
The world of cryptocurrency has gone through a long way since its foundation in 2009. From Bitcoin to Ethereum, Litecoin to Dogecoin, the market has grown exponentially and attracted investors from around the world over the years. However, the navigation of this complex country may be stunning for beginners. In this article, we will dive into four key concepts to help you understand and take informed crypto market decisions: crypto, publishing period, technical analysis and economic indicators.
Crypto
The cryptocurrency is a digital or virtual currency that uses cryptography for safe financial transactions. It is decentralized, which means that it is not controlled by any government or institution and operates on a Peer-to-peer network called Blockchain. The best known cryptomes are Bitcoins (BTC), Ethereum (ETH) and Litecoin (LTC). Each cryptocurrency has its own unique properties, cases of use and dynamics of prices.
Claim period
The period of entitlement is a time frame during which the ownership of the cryptocurrency is gradually increased over time. In other words, the more time they hold their cryptomena, the greater their share. This concept helps prevent the rapid strategy of purchasing and holding, which can lead to considerable losses if the market fluctuates rapidly.
For example, let’s say that you will buy 10 bitcoins at an initial $ 1,000 price and agree that 20% will be entrusted over the next two years. At the end of the first year, your holding period would be 12 months (3 quarters), but in the second quarter of the same year you would have only 5% of the total assets. This gradual increase in ownership helps to alleviate volatility and allows investors to build a stable portfolio over time.
Technical Analysis
Technical analysis is a method used to analyze prices and formula movements in financial markets, including cryptomen. It includes the study of various graphs and indicators to identify trends, levels of support and resistance and other market signals. Technical analysts use these tools to make informed investment decisions and predict future market movements.
Some common technical analysis techniques include:
- Sliding diameters: The sliding diameter is a graph that shows the price of security over time. It is used to smooth out price fluctuations and to identify trends.
- Relative power index (RSI): This indicator measures the extent of recent prices amendments to determine excessively purchased or excessive market conditions.
- Bollinger Bands: These bands represent a scope in which prices are likely to fluctuate, which provides a level of volatility.
Economic indicators
Economic indicators are metrics that reveal information about the economy, the rate of inflation and the interest rates of the country. They serve as reference values for investors and may affect cryptom markets. Some common economic indicators include:
- Inflation rate: measured by the Consumer Price Index (CPI) indicates changes in the prices of goods and services.
- Interest rates: The Federal Reserve determines interest rates for inflation control, stimulation of economic growth or curb inflation.
- GDP growth rate: This rate measures the total performance of goods and services in the country.
Investors can analyze these indicators using different methods including:
- Sliding diameters: they can be used to smooth out prices fluctuations and to identify trends on the market.
- Relative power index (RSI): can help detect excessive or sold market conditions.
- Bollinger Bands: These groups provide visual representation of volatility and can help traders predict price movements.