Understanding Cryptocurrency and Technical Indicators

 What is Cryptocurrency in General and Crypto Trading Technical Indicators

One of the critical factors for successful crypto trading and investment is the proper knowledge about the technical terms involved in this business. 

It allows you to understand this matter in maximum capacity, reducing the risk of committing unwanted mistakes that might hurt you or cause profit loss. 

Thus, it is best to research these before making a total commitment, as it gives you the familiarity and background of the entire image of cryptocurrency trading.

 

Understanding Cryptocurrency

A cryptocurrency is a form of online payment that people can use to buy and sell products and services, not only on the internet but also brick and mortar offline businesses are getting more into crypto.  Elon Musk ring a bell? :)

Many crypto businesses have created their currencies, known as tokens, and these tokens can exchange that for the offers they do at the market. 

Some people often consider this alt-coins as arcade tokens or casino chips acquired through real money, but they have real value, and you can find exciting use cases for some of them.

 

In a clearer picture, a cryptocurrency or coin is a form of electronic money. It means that there are no actual coins or bills; all is done digitally. 

Moreover, you can send cryptocurrency online without using an intermediary like banks or PayPal.

Nevertheless, like physical money, people may also use cryptocurrencies to make immediate purchases and lower the transaction fees. 

 

There has been an increase in people investing and trading cryptocurrencies during the past years, seeing their value rise rapidly. 

Purchasers acquire it through credit cards, banks, trading, and in some cases, through a method known as crypto-mining. 

These people access cryptocurrency on their phones and other electronic devices, particularly in a digital wallet that serves as its storage and holder. 

 

Cryptocurrency uses blockchain, an innovation that enables it to function, manage, and record each transaction in a ledger stored through several computers in the network.

Crypto, in general, is a decentralized technology, which includes its protection against hacks and privacy as one of its main appeals.

Another crypto major appeal is to use it for speculation, AKA Crypto Trading. Technical Analysis is a critical factor you need to understand if you want to make money in the crypto industry.

 

Cryptocurrency Trading Technical Indicators

Due to its high volatility, It is difficult to predict which way the value of cryptocurrencies will move; therefore, indicators exist.

These indicators are technical analysis-based instruments that help traders better forecast the fluctuation in the cryptocurrency price. 

Technical research enables the creation of metrics by using quantitative knowledge to build predictive projections of the market behavior. 

The formula data is plotted and put underneath or overlapped on the market map to help the traders make the best decisions. 

Technical Analysis (TA) is not easy to understand at first. But don't get discouraged because once you get the main ideas, all will become clearer for you.

If you've been trading for a while, you know that making mistakes is part of the trading business. 

In fact, losing trades are impossible to avoid for any trader; it doesn't matter if you're a newbie or a seasoned trader; you will get your share of losing strikes...

If you're a new trader, why not go thru some technical analysis basic indicators first? 

Check out this article on How to Understand and Apply Technical Indicators to Crypto Trading Strategies.