How Predictable Is The Crypto Market?

(Last Updated On: October 4, 2022)

In recent times, newbies and inexperienced traders looking to game the system and become the next crypto millionaire have flooded the cryptocurrency market. Nonetheless, most traders have realized the hard way how complicated and torturous predicting the infamously volatile market is. In this article, we examine exactly how predictable the crypto market is, how to predict crypto prices, and how to analyze the crypto market.

Is Crypto Predictable?

Things move fast in the cryptocurrency world. However, major events that could potentially affect the price of cryptocurrency projects often enjoy the attention of both the media and influencers in the crypto space. Therefore, if you look hard enough, you should be able to piece together clues that will assist you in predicting the cryptocurrency market.

Furthermore, the rise of crypto projects has driven up demand for crypto information products. And nowadays, various companies offer newsletters covering everything about cryptocurrencies and their blockchain technology. Usually, these newsletters contain comprehensive information on crypto that could assist you with future crypto market prices or make general market predictions easier. These include valuable tools such as How-To Guides, new government regulations, project launches, price forecasts, interviews, breaking news, and more.

How To Predict Crypto Prices?

Predicting crypto prices rests solely on your discerning ability. As a crypto trader, you must learn to correctly anticipate what will happen to a market in time before it eventually does because your profitability in the market depends on it. For example, if developers of a cryptocurrency project plan to add a feature to a project and you recognize its potential, you can buy into the crypto right before it is priced in to gain an advantage over other traders.

Note: The two dominant crypto price movement scenarios are:

  • Bullish: This price movement occurs when traders expect prices to keep going up for a while.
  • Bearish: This price movement occurs when traders expect the prices to keep falling for a while.

To get ahead of the market, you must correctly predict bullish or bearish crypto price movements so you know when to hodl, buy more, or sell. To do this efficiently, you need to understand the three price prediction analyses, which include; Technical, Fundamental, and Sentimental analysis.

Three Categorizations of Crypto Prediction Analysis

Technical Analysis: This analysis pattern is used by traders to evaluate cryptocurrency price movements and identify trading opportunities by analyzing statistical trends gathered from past trading activities. This analysis is based on the belief that future price movements depend on past trading activity, and prioritizes price movements and trade volumes. In general, technical analysts lookout for indicators such as Price trends, Chart patterns, Volume, Momentum, Oscillators, Support/resistance levels, and moving averages.

Fundamental Analysis: This is a method of measuring the intrinsic value of a cryptocurrency project. It is based solely on financial and economic factors such as unique use-cases, tokenomics, and macroeconomic implications. Proper fundamental analysis determines a cryptocurrency’s fair market value and thus, presents opportunities for traders in the market by identifying crypto projects that are undervalued or overvalued.

Sentimental Analysis: This is the sentimental and psychological analysis of the major stakeholders in the cryptocurrency market as well as the prevalent opinion of leading market influencers. The sentimental analysis takes into account the human factor, including perceptions and expectations of relevant stakeholders, which could include investors, the crypto community, developers, and influencers.

Most Predictable Crypto List

While there is no crystal ball for accurate price predictions on any cryptocurrency projects available in the market. Beginners and inexperienced traders should invest in large-cap cryptocurrencies with large volumes as they are easier to predict. Also, investing in large-cap cryptocurrencies makes you sleep comfortably at night as there is less anxiousness over an unforeseen rug-pull or massive drawdowns, which other small-cap cryptocurrencies are susceptible to. Below, we have made a list of the top 10 crypto projects with a large market cap of at least $20 Billion:

  1. Bitcoin BTC
  2. Ethereum ETH
  3. Tether USDT
  4. BNB
  5. USD Coin
  6. XRP
  7. Terra LUNA
  8. Cardano ADA
  9. Solana SOL
  10. Avalanche AVAX

How To Exchange Crypto At The Best Rates?

Need to buy crypto on a trustworthy crypto exchange? Look no further, Swapzone is one of the best exchanges to safely buy cryptocurrencies in the market. Swapzone is a fantastic crypto exchange that provides real-time swap offers and discounts. Here’s how to buy predictable and safe cryptocurrencies or convert one crypto coin into another:

  1. Visit the Swapzone website.
  2. Select the correct pair (ETH to BTC).
  3. Enter the amount of ETH you want to exchange for BTC, and the aggregator will find the best offers available for you.
  4. Click the ‘Exchange’ button to go to an exchange platform
  5. Input the address where you want to send the BTC coins.
  6. Send your money to the address you typed in.
  7. Go to ‘Proceed to Exchange’ and, if you want, leave a review of the website where you completed your exchange.
  8. Allow for the processing of the deposit and the completion of the BTC exchange.
  9. Your coins should be in your wallet once the process completes.

Disclaimer! This article does not constitute investment advice. Trading cryptocurrencies is a high-risk activity; always DYOR before making any type of investment.

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