How to carry out a basic analysis of the Krypto investment

The world of cryptocurrencies has been dealing with wild leadership in recent years, and prices have fluctuated through wildlife invested, which are often unmatched by conventional investments. As a result, the investment in the crypto currency can be exciting and awesome. Although the possibility of high yields is indisputable, it is essential to separate the hype from the basics when it is invested by cryptocurrencies.

What are the basic factors?

Before immersing in the basic analysis, let us determine what the basic factors mean in the context of the Krypto -Village. The basic factors refer to the basic characteristics of the cryptocurrency currency that can affect its value and performance. These factors include:

• Supply and Demand

  : Balance between the number of coins in circulation (supply) and total market capitalization (demand).

• Technical analysis : technical indicators such as tables, patterns and trends that provide insight into the prices of the coins.

• Regulatory Environment

  : Government policies, laws and regulations that affect the cryptocurrency market.

• Market mood : Complete attitude of investors, including bulls or bear feelings.

To perform a basic analysis of the Krypto investment

Follow these steps to provide a fundamental analysis of cryptographic investment:

• Select Crypto Currency : Select a crippto currency with strong bases and growth potential. Discover the coin, the way and the team folder to understand the basic technology and use.

• Value the offer and demand : Analyze the bid and demand dynamics in the selected crypto currency. Take a look at the flood plates and compare them with historical data to identify patterns and trends.

• Analyze the technical indicators : Use technical indicators such as moving average, relative strength index (RSI) and Bollinger for measuring momentum and coins sensing.

• Create a regulatory environment : Research policies and laws related to the currency of the cryptocurrency in the selected market. Note factors such as taxation, licensing requirements and regulations on money laundering regulations.

• Evaluate market feelings : See market trends and feelings, such as conversations in social media, forums and internet communities to evaluate the enthusiasm for investors for the cryptocurrent.

Case study:

Examine the basic analysis of Bitcoin (BTC) with the above steps.

* Offer and Demand: The full BTC offer is limited to 21 million, while full market capitalization exceeds $ 2 trillion. This causes strong imbalance.

* Technical analysis: The price of BTC shows a consistent rise trend with a strong bull intersection between the short and long -term moving average. RSI is at 70, indicating excessive conditions.

* The Regulatory Environment: Bitcoin works on an unregulated market and makes it attractive to governments who want to accept the crypto valve for their purposes. The regulatory framework of the European Union also attracted interest to BTC as the potential value of value.

* Market Emotions: Negotiations for Twitter and Internet Forums are full of bitcoin, which is leading to recent prices.

Conclusion

In order to perform a basic analysis of cryptography investment, details and understanding of basic factors that encourage the prices of the cryptocurrency cryptocurrency must be taken into account. By assessing the dynamics of the offer and demand, analyzing technical indicators, evaluating the regulatory environment and testing market feelings, investors can make their choice more deeply understand their chip currency and make sound investment decisions.