How to independently analyze the crypto market. Instructions for beginners

Before buying digital coins, crypto investors want to be sure that the deal will be profitable. Experts explained what knowledge and tools you need to have in order to effectively make decisions about entering an …

Before buying digital coins, crypto investors want to be sure that the deal will be profitable. Experts explained what knowledge and tools you need to have in order to effectively make decisions about entering an asset

Last week, for the first time since January of this year, bitcoin dropped to $ 28.8 thousand. After that, the quotes of the main cryptocurrency returned to the range of $ 32-36 thousand. On June 29, 11:50 Moscow time, the coin is traded at a price of $ 35 thousand, and its capitalization, according to CoinGecko, is $ 657 billion. experts explained how beginners can learn to see cryptocurrency market signals and use them to find entry points.

The beginning of time


Successful investments are hard daily work, studying market trends, monitoring specialized forums and social networks, analyzing technical analysis and correctly compiling a portfolio, explained Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. According to him, the complexity of investment activity is that it is associated with risks and a huge psychological burden, which is difficult for beginners to withstand.

“This is the hardest thing for newcomers: not to panic, but also not to remain in an asset that is doomed,” the expert noted.

Also, successful investments do not imply that the investor does not make the wrong strategic steps at all, even professionals make mistakes, so the main thing is the total ROI (return on investment, return on investment), distributed across all assets in the investment portfolio, Soshnikov added.

The first steps


Any financial market, including the cryptocurrency market, does not tolerate a superficial approach and will punish you with a loss, says TradingView analyst Maxim Lushnikov. According to him, in order for a beginner to consciously find the point of entry into an asset, one needs to have basic concepts of economics, the rules for price formation in the market and know the basics of technical analysis.

Exchange trading has a century and a half of history, while the crypto market is barely 10 years old, said Mikhail Karkhalev, financial analyst at crypto exchange. A crypto investor can find many answers in traditional markets. The analyst advised to study the elementary fundamentals of technical analysis: moving averages, key support and resistance levels.

“To begin with, this will be enough to understand some of the mechanics of the market. Then you can delve into something more serious, for example, cluster analysis. But this will take more than one year of study, ”said Karkhalev.

It is worth studying the basic concepts of diversifying the investment portfolio and understanding which cryptocurrencies exist in principle and whether they can be categorized somehow, advises the director of the cryptocurrency exchange service Alfacash. According to him, separate asset classes include digital coins used as means of payment, blockchain platforms for DeFi and smart contracts, as well as tokens of crypto-exchanges and decentralized trading platforms.

You should not completely ignore technical analysis, but in general, if we are not talking about numerous transactions during the day, then you can do without it, Soshnikov noted. He argues that an investor should take the time to study the technology itself in order to understand what he is investing in.

“If an investor does not understand what he is investing in, how it works, then investing is not worth it. Better to buy something understandable, ”added the expert.

What you need to know before entering the crypto market


Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service, named the fundamental factors that a crypto investor should understand before buying digital coins:

  • There is no endless growth;
  • You are guaranteed high profitability for a month, and in exchange they simply ask you to send a referral link and "bring a friend"? This is most likely a hoax;
  • Have you read the description of the project, but did not understand anything, because there are too many technical terms that you do not understand? Don't invest. You will not be able to reasonably assess the prospects of an incomprehensible project;
  • Be sure to check your country's tax laws regarding digital assets. Think about it now before buying;
  • You have compiled an investment portfolio, but a couple of projects, contrary to your forecast, are steadily falling in price. “Probably, cryptocurrencies are not mine,” the thought comes to mind. Throw it away, even multibillion-dollar fund managers do not have a fully growing investment portfolio.

How to determine the potential of a token


If you invest in Bitcoin or Ethereum, two of the most popular and stable coins, then it makes no sense to conduct in-depth analysis, since these coins are a priori promising, says the financial analyst of the crypto exchange. According to him, when buying any other token, you need to apply the approach of a venture investor and understand that you are investing not in a digital coin, but in a startup and its team, Karkhalev explained.

In this case, you need to evaluate the idea of the project, the reality of the implementation of its idea, the economics of the project, what it will earn, the use of the token, the team and its background, to understand whether someone has invested in this project from large funds and, of course, on what he is at the stage now, the analyst added. He recalled that, according to statistics, 95% of startups cease to exist in the first year.

Crypto Investor Tools


First of all, you need to study the training materials of the Binance Academy, advised Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. In his opinion, this is an excellent reference for those who are just starting to dive into the world of cryptocurrencies. Soshnikov also recommended researching the community by reading comments on Reddit. Another expert tip is to follow the movements of large volumes of digital coins using the Whale Alert service on Twitter.

For more advanced market participants, the financial analyst at the crypto exchange advised using the services Glassnode, CryptoQuant or Skew. According to Karkhalev, it is important to analyze how these metrics behave during periods of market downturn and rally in order to identify patterns.

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