Crypto trading is a popular way to multiply your holdings. Cryptocurrency exchanges offer a variety of trading tools, for example, spot market, margin, futures trading, staking, and many more efficient instruments that allow generating enormous profits while having a small initial capital.
Also, the market offers several trading strategies to make a profit working in the crypto market in the short and long term. Some strategies imply frequent opening and closing positions many times during some short period, and others imply long-term investments, etc.
All these earning opportunities work due to the high volatility of digital asset prices. If you look at any crypto chart, you will see that cryptocurrency prices live change constantly. Sometimes it’s slight fluctuations and occasionally rapid price changes.
To succeed in trading and investments, one should be able to predict the future price crypto movement and the market trend. Therefore, this article will discuss the analysis needed for successful crypto trading.
How Can I Forecast the Future Market Trend?
The traditional financial market offers three types of analysis that are applicable to the crypto market as well:
- Technical analysis
- Fundamental analysis
- Quantitative analysis.
Technical research investigates crypto charts and finds historical indicators and patterns for further crypto price prediction. It helps understand how prices behave during different market periods.
Fundamental analysis involves the assessment of all external factors on the market, including the global economy, politics, crisis, inflation, etc.
Quantitative analysis is calculating different financial ratios with the goal of estimating the market’s performance in different timeframes. This research includes both technical and fundamental analysis.
So, investors carry out these three crucial forms of analysis to learn how to make correct crypto price predictions.
The next important thing after determining an asset to invest in is to pick a quality service that provides convenient and reliable tools for investment and trading. For example, try the WhiteBIT crypto exchange – the biggest European platform, enabling various trading tools and robust security for users’ funds and data.