How to predict cryptocurrency prices like a pro?
Crypto trading has not been the same ever since the trading bots like Bitcoin Code were introduced in the market. An automated trading bot can do you a lot of good by helping you focus on what really matters and leave the entire trading process to the bot. The bot would be equipped with the computational abilities that allow it to study the market and take important decisions by comparing the technical indicators and the price movements.
Unlike the forex trading, crypto trading is known to have fewer regulations to comply with. So the growth can be tremendous. If you are able to predict the price of cryptocurrencies or at least the direction of change then you would end up making some big gains. But how do you master the art of cryptocurrencies price prediction?
Shake hands with technical analysis
You cannot postpone mastering technical analysis if you wish to consistently make profits. Though there are many external markets affecting factors that influence the price technical analysis can go a long way in helping you understand the price patterns better. Bollinger Band, for example, is one of the best strategies adopted to predict prices of cryptocurrencies. By observing the upper and the lower bands and identifying the current movements you would be able to make a fairly close estimate.
Look for social trading signals
Trading is not an area where competition works. People do not conceal their strategies anymore. When an asset does well the investors do well and when the investors do well they end up purchasing more of the asset which in turn would fetch better profits for all the investors. This is a pretty interesting cycle. So if you look at the comments made by some of the market experts you would get a pretty good idea about the price that the cryptocurrency is likely to reach. There are even many popular social trading platforms that give out trading signals to help you make better decisions.
Understand the coin and the influence of the market
Not all cryptocurrencies react the same way to every market condition. Take the case of a market crash for example. There are some currencies that break real bad and might take too long to recover. But there are others that do not budge much with market fluctuations. Both of these can be tricky to invest in. There are a few cryptocurrencies that show a strong relationship with the market condition. These might fall when the market falls but recover very quickly. So they make great investment choices. You would also be able to predict their prices pretty closely.