Everybody has their methods for placing trades in the cryptocurrency market and making at least some kind of profit.
The crypto community usually divides them into three categories. These are the leaders who come up with charts and analysis nearly every single day. The followers that use these charts to place trades with and add their own knowledge as an additional guarantee for it to be successful, and finally the “YOLO traders” who base their trades on tweets from a project CEO or simply look at the coin’s trend anticipating it to repeat.
All of the above-mentioned types have their successful and unsuccessful moments in the crypto market, but it’s only natural that those who are prepared the most, are profiting the most right?
So how does one join that small percentage of successful crypto traders that drive the industry and make it what it is now? Well, there are dozens of ways, but the five about to be listed are the most essential features.
Learn technical analysis
Although many say that technical analysis is redundant for cryptocurrencies, almost everybody who does it tends to disagree.
Technical analysis is basically you looking at the chart and trying to predict the movement of a coin’s price based on several indicators such as market trends, the overall sentiment, and the tools at your disposal.
One of the main reasons that technical analysis works is that many people do it, and base their opinions on it. Since their opinions tend to correlate, a large majority of the market places the same trade, which forces the market to take the route that was predicted.
It’s pretty much a self-fulfilling prophecy. What you need to understand is that if you’re doing technical analysis,