How to Find An Entry Price to Cryptocurrency
I remember when I first got into crypto, it was very frustrating to notice constant price fluctuation but not knowing how to take advantage of it. Here are a few simple tips I have to help you learn how to track these price movements and develop a feel of the market.
- If you dont want to take the time and pay attention than just hodl and dollar cost average in. Not only is it one of the best strategies for long term but alot of times its just as profitable if not more.
- Now thats out of the way, if your like me and that just isn’t enough for you the first thing you will need to do is set up a trading view account. You do not need to pay for it, the free version is very robust, I personally find it worth it to pay for the pro version but it is not required by any means.
- Now that you have trading view learn how to draw trend lines as well as what alot of the more common patterns are.
- Learn how to use fib retracment, the Mac d, stochastic rsi, volume & moving averages. There are a lot more tools but these ones are all very simple to use and if you spend an hour on Google you’ll understand them.
- this is what really helped me, start looking at 1 minute charts on eth and btc, as things move draw trend lines and try to recognize the patterns forming and whats going on. While the one min. Will not give you a great idea of the longterm it allows you to actually see and understand where and why traders are settling up at certain points. Also it moves very fast alot of the time providing you alot of opportunity to learn and practice.
- PRACTICE, trading view allows for paper trading in the web browser version. Take your time and use realistic amounts of money as if it was really yours. I still do this, I’m constantly making paper trades in trading view and testing out strategies to see how they work.
- Check your emotions and do not fomo.
- Last one, bitcoin can and will wreck your entire day, month or even year. It is very important to be aware of what bitcoin is doing and what the current sentiment is amongst traders. ESPECIALLY IF YOUR NOT TRADING IT. It doesn’t matter if that altcoin your trading is performing really well and looks super solid, if bitcoin drops it all drops. Yes of course exceptions exist but they are rare.
ALSO PLEASE PLEASE PLEASE KEEP IN MIND none of this stuff really means anything, its all psychological… it helps because we all use the same tools, charts and follow a certain set of rules but at the end of the day none of this is even close to a guarantee. Doing technical analysis on charts is like trying to predict the weather, we can make an educated guess depending on whats going on but its NEVER a sure thing.