What Analysis Should Be Carried Out When Buying Cryptocurrency?
The cryptocurrency field is developing rapidly, regardless of the market drop in the spring of 2022. Now is the best time to buy crypto assets at lower rates and wait until the market trend changes. So many people strive to buy cryptocurrency and hold it long-term or use it for trading. When buying crypto for the first time, many wonder what asset to pick. Here are the most traded crypto as of October 2022:
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP
- Solana (SOL)
- Cardano (ADA)
- and others.
You can see the complete list of crypto coins on the Coinmarketcap resource. They are all available on the most prominent crypto platforms. For example, you can buy crypto on Binance, WhiteBIT, Coinbase, etc.
What Should I Consider When Picking Crypto?
Before buying crypto, conduct the research that includes:
- Fundamental analysis: assessment of the global economy and other external factors that affect the crypto market.
- Technical analysis: understanding crypto charts, finding historical indicators and patterns, trends, etc.
- Quantitative research: assessment of the asset’s behaviour in certain market conditions. It includes the calculation of indicators based on technical and fundamental research.
Also, it is essential to assess the news background and hype. We all remember when Elon Musk claimed DOGE was his favourite crypto, and the coin’s price skyrocketed. People started to purchase DOGE in masses, which stimulated the growth of demand for this coin. However, the DOGE price dropped after a while, and since this asset does not have any technical load or benefit but was rather created to draw attention to the market, there are no big chances that this coin will skyrocket again and hold the high price level. Indeed, hype and media outlets’ news matter, but when buying cryptocurrency, we do not recommend following hype, especially regarding such coins s DOGE.
Look for technically rich and established projects to invest in. To buy crypto online, go to the WhiteBit. It is a convenient platform for trading and investment with a transparent policy and low fees.