LIVECrypto Eduction
@niphozulu27
I do this for the love of Crypto
Following
Followers
Liked
Share
Sentiment indicators
we will explore how the level of trading activity can act as an indicator of market mood and have an impact on your trading plans
Bearish and bullish sentiment- A significant shift in volume may suggest the market's attitude towards a cryptocurrency. For example, an increase in trading volume while Bitcoin is rising may indicate a positive trend.
Accumulation and distribution- Professional traders frequently take advantage of periods with high trading volume to build up or sell off large positions. Monitoring volume can provide indications of potential strategies being considered by institutional traders.
#HotTrends #cryptoeducation
we will explore how the level of trading activity can act as an indicator of market mood and have an impact on your trading plans
Bearish and bullish sentiment- A significant shift in volume may suggest the market's attitude towards a cryptocurrency. For example, an increase in trading volume while Bitcoin is rising may indicate a positive trend.
Accumulation and distribution- Professional traders frequently take advantage of periods with high trading volume to build up or sell off large positions. Monitoring volume can provide indications of potential strategies being considered by institutional traders.
#HotTrends #cryptoeducation
Liquidity and volatility
Now, we will explore how trading volume is connected to liquidity and volatility, which are important factors that can impact your trading.
High levels of liquidity are typically associated with increased trading volume. This simplifies the process of entering or exiting trades without experiencing slippage, which occurs when the price of the asset changes due to your trade.
Volatility: Increased trading volume spikes usually come before heightened volatility. Even though it presents the opportunity for substantial gains, especially in unstable markets such as cryptocurrencies, it also raises the level of risk.
Now, we will explore how trading volume is connected to liquidity and volatility, which are important factors that can impact your trading.
High levels of liquidity are typically associated with increased trading volume. This simplifies the process of entering or exiting trades without experiencing slippage, which occurs when the price of the asset changes due to your trade.
Volatility: Increased trading volume spikes usually come before heightened volatility. Even though it presents the opportunity for substantial gains, especially in unstable markets such as cryptocurrencies, it also raises the level of risk.
How to use volume as a trading indicator?
We will examine how trading volume can act as a strong signal to guide your cryptocurrency trading choices. Understanding the role can enhance the likelihood of successful trading.
Confirmation of trend direction
Having a grasp on the intricacies of trading volume can be highly beneficial in verifying the trajectory of a market trend. Here's the method:
An increase in trading volume can confirm the beginning of either a breakout or a breakdown in both the cryptocurrency and traditional markets. A greater amount of participation in the market indicates a higher likelihood of the trend persisting. If Bitcoin's price surpasses a resistance level with significant volume, it is a positive sign.
Reversals: A decrease in trading volume could indicate an upcoming reversal in trends. If you see Ethereum's price rising but with less trading activity, it could mean the upward trend is weakening.
#HotTrends #cryptoeducation
We will examine how trading volume can act as a strong signal to guide your cryptocurrency trading choices. Understanding the role can enhance the likelihood of successful trading.
Confirmation of trend direction
Having a grasp on the intricacies of trading volume can be highly beneficial in verifying the trajectory of a market trend. Here's the method:
An increase in trading volume can confirm the beginning of either a breakout or a breakdown in both the cryptocurrency and traditional markets. A greater amount of participation in the market indicates a higher likelihood of the trend persisting. If Bitcoin's price surpasses a resistance level with significant volume, it is a positive sign.
Reversals: A decrease in trading volume could indicate an upcoming reversal in trends. If you see Ethereum's price rising but with less trading activity, it could mean the upward trend is weakening.
#HotTrends #cryptoeducation
How to use volume as a trading indicator?
We will examine how trading volume can act as a strong signal to guide your cryptocurrency trading choices. Understanding the role can enhance the likelihood of successful trading.
Confirmation of trend direction
Having a grasp on the intricacies of trading volume can be highly beneficial in verifying the trajectory of a market trend. Here's the method:
An increase in trading volume can confirm the beginning of either a breakout or a breakdown in both the cryptocurrency and traditional markets. A greater amount of participation in the market indicates a higher likelihood of the trend persisting. If Bitcoin's price surpasses a resistance level with significant volume, it is a positive sign.
Reversals: A decrease in trading volume could indicate an upcoming reversal in trends. If you see Ethereum's price rising but with less trading activity, it could mean the upward trend is weakening.
#HotTrends #cryptoeducation
We will examine how trading volume can act as a strong signal to guide your cryptocurrency trading choices. Understanding the role can enhance the likelihood of successful trading.
Confirmation of trend direction
Having a grasp on the intricacies of trading volume can be highly beneficial in verifying the trajectory of a market trend. Here's the method:
An increase in trading volume can confirm the beginning of either a breakout or a breakdown in both the cryptocurrency and traditional markets. A greater amount of participation in the market indicates a higher likelihood of the trend persisting. If Bitcoin's price surpasses a resistance level with significant volume, it is a positive sign.
Reversals: A decrease in trading volume could indicate an upcoming reversal in trends. If you see Ethereum's price rising but with less trading activity, it could mean the upward trend is weakening.
#HotTrends #cryptoeducation
Why is the market cap important?
Price is merely one indicator of a cryptocurrency's worth. Market cap is a tool used by investors to compare the values of different cryptocurrencies and provide a more thorough narrative. As a crucial metric, it can reveal a cryptocurrency's potential for growth as well as whether purchasing it is risk-free in comparison to alternative options.
For example, let's examine the market capitalization of two hypothetical cryptocurrencies.
With 400,000 coins in circulation, if each coin of Cryptocurrency A is valued at $1, its market capitalization totals $400,000.
With a circulation of 100,000 coins and a value of $2 per coin, Cryptocurrency B has a market capitalization of $200,000.
While the price of a single coin in Cryptocurrency B is higher than in Cryptocurrency A, the total value of Cryptocurrency A is twice that of Cryptocurrency B.
Nevertheless, it is crucial to recognize that the market capitalization of numerous cryptocurrencies can fluctuate significantly because of their instability.
#HotTrends #cryptoeducation
Price is merely one indicator of a cryptocurrency's worth. Market cap is a tool used by investors to compare the values of different cryptocurrencies and provide a more thorough narrative. As a crucial metric, it can reveal a cryptocurrency's potential for growth as well as whether purchasing it is risk-free in comparison to alternative options.
For example, let's examine the market capitalization of two hypothetical cryptocurrencies.
With 400,000 coins in circulation, if each coin of Cryptocurrency A is valued at $1, its market capitalization totals $400,000.
With a circulation of 100,000 coins and a value of $2 per coin, Cryptocurrency B has a market capitalization of $200,000.
While the price of a single coin in Cryptocurrency B is higher than in Cryptocurrency A, the total value of Cryptocurrency A is twice that of Cryptocurrency B.
Nevertheless, it is crucial to recognize that the market capitalization of numerous cryptocurrencies can fluctuate significantly because of their instability.
#HotTrends #cryptoeducation
What is market cap?
Market capitalization (or market cap) is the total market worth of all of a company's shares, or all of the coins that have been mined in the case of Bitcoin or another cryptocurrency. The price of a single coin at any one time is multiplied by the total number of coins that have been mined to determine the market capitalization of cryptocurrency.
Market capitalization can be viewed as a basic indicator of an asset's likelihood for stability. (It's interesting that volatility continues in Bitcoin, the cryptocurrency with the largest market capitalization.) However, a cryptocurrency with a lot greater market size is probably a more solid investment than one with a much smaller market cap, much as a larger ship can safely navigate heavy weather. On the other hand, digital currencies with smaller market capitalizations are more prone to market fluctuations and may experience sharp rises or falls in value.
Note: Market caps for "circulating supply" and "fully diluted supply" may be included. The 18.5 million Bitcoin that have already been mined (also known as the "circulating supply") or the 21 million that will eventually be mined (also known as the "fully diluted supply") are the two numbers. Some observers may use the completely diluted amount to calculate market capitalization, while others will use the supply that is currently in circulation, depending on their methodology.
#HotTrends #cryptoeducation
Market capitalization (or market cap) is the total market worth of all of a company's shares, or all of the coins that have been mined in the case of Bitcoin or another cryptocurrency. The price of a single coin at any one time is multiplied by the total number of coins that have been mined to determine the market capitalization of cryptocurrency.
Market capitalization can be viewed as a basic indicator of an asset's likelihood for stability. (It's interesting that volatility continues in Bitcoin, the cryptocurrency with the largest market capitalization.) However, a cryptocurrency with a lot greater market size is probably a more solid investment than one with a much smaller market cap, much as a larger ship can safely navigate heavy weather. On the other hand, digital currencies with smaller market capitalizations are more prone to market fluctuations and may experience sharp rises or falls in value.
Note: Market caps for "circulating supply" and "fully diluted supply" may be included. The 18.5 million Bitcoin that have already been mined (also known as the "circulating supply") or the 21 million that will eventually be mined (also known as the "fully diluted supply") are the two numbers. Some observers may use the completely diluted amount to calculate market capitalization, while others will use the supply that is currently in circulation, depending on their methodology.
#HotTrends #cryptoeducation
Indicators and strategies
We'll explore how trade volume might enhance several technical indicators and trading tactics in this last section, giving you a more sophisticated approach.
Volume-based technical indicators- Volume is taken into account by indicators like Chaikin Money Flow and On-Balance Volume (OBV) to produce trading signals that are more accurate. These are especially helpful when trading bitcoins, as their prices frequently fluctuate suddenly.
Volume and price action- In order to validate price action signals, volume can also be used. When a bullish candlestick pattern, such a "Hammer," is combined with a high trading volume, it is typically regarded as a stronger buy signal.
Average volume- You can learn more about the typical behavior of the asset by comparing the current volume to an average. If you see that a token such as VERSE has a much higher volume now than it did previously, this could indicate a great trading opportunity.
#HotTrends #cryptoeducation
We'll explore how trade volume might enhance several technical indicators and trading tactics in this last section, giving you a more sophisticated approach.
Volume-based technical indicators- Volume is taken into account by indicators like Chaikin Money Flow and On-Balance Volume (OBV) to produce trading signals that are more accurate. These are especially helpful when trading bitcoins, as their prices frequently fluctuate suddenly.
Volume and price action- In order to validate price action signals, volume can also be used. When a bullish candlestick pattern, such a "Hammer," is combined with a high trading volume, it is typically regarded as a stronger buy signal.
Average volume- You can learn more about the typical behavior of the asset by comparing the current volume to an average. If you see that a token such as VERSE has a much higher volume now than it did previously, this could indicate a great trading opportunity.
#HotTrends #cryptoeducation
What is trading volume?
Put simply, trading volume refers to the total number of buying and selling transactions for a particular cryptocurrency in a given time frame, typically calculated daily. For instance, when Bitcoin has a daily trading volume of 50,000 BTC, it shows that 50,000 bitcoins were exchanged on that specific day. Comprehending trading volume is a crucial tool for making well-informed trading choices.
#HotTrends #cryptoeducation
Put simply, trading volume refers to the total number of buying and selling transactions for a particular cryptocurrency in a given time frame, typically calculated daily. For instance, when Bitcoin has a daily trading volume of 50,000 BTC, it shows that 50,000 bitcoins were exchanged on that specific day. Comprehending trading volume is a crucial tool for making well-informed trading choices.
#HotTrends #cryptoeducation
Crypto Bubbles
This is a tool that you can use to check the movement of coins. You can view the movement they made within an hour a day a week or a year, and also check market cap.
This application is very user-friendly.Even beginners can utilize it with ease.
Feature 1- You are able to select the range of coins you would like to see eg: The top 100 coins,200 coins, and so on.
Feature 2 - You are able to place certain coins you like under favourites and those you see a potential in under watch list and go as block the coins you do want to see or think are scams.
Feature 3 - This is simply a list of crypto currency exchanges.
Feature 4 - The magnifying glass is an option where you can search for coins you want.
Feature 5 - This is an exciting and fun feature about the app. when you click on a bubble of your choice, it will pop up with information about the coin, and if it has moved up or down within the crypto ranks.
#cryptoeducationwithnipho #BTC
This is a tool that you can use to check the movement of coins. You can view the movement they made within an hour a day a week or a year, and also check market cap.
This application is very user-friendly.Even beginners can utilize it with ease.
Feature 1- You are able to select the range of coins you would like to see eg: The top 100 coins,200 coins, and so on.
Feature 2 - You are able to place certain coins you like under favourites and those you see a potential in under watch list and go as block the coins you do want to see or think are scams.
Feature 3 - This is simply a list of crypto currency exchanges.
Feature 4 - The magnifying glass is an option where you can search for coins you want.
Feature 5 - This is an exciting and fun feature about the app. when you click on a bubble of your choice, it will pop up with information about the coin, and if it has moved up or down within the crypto ranks.
#cryptoeducationwithnipho #BTC
Useful Crypto Tools/websites
1) Lunar Crush - LunaCrush collects activity across social media for Bitcoin, thousands of altcoins,as well as what influencers are posting, and distills it to bitsize,digestible chunks.
2) Nomics - Track your favorite crypto coins by their true market cap value.
3) Glassnode - You can use it to see stats like the exchange info volume and how it compares to inflow for the last 24 or the last few days.
4) CoinTelegraph - Leading independent digital media resource covering a wide range of news on blockchain technology and crypto assets.
5) CoinMarketCap - The world's most referenced price-tracking website for crypto assets.
1) Lunar Crush - LunaCrush collects activity across social media for Bitcoin, thousands of altcoins,as well as what influencers are posting, and distills it to bitsize,digestible chunks.
2) Nomics - Track your favorite crypto coins by their true market cap value.
3) Glassnode - You can use it to see stats like the exchange info volume and how it compares to inflow for the last 24 or the last few days.
4) CoinTelegraph - Leading independent digital media resource covering a wide range of news on blockchain technology and crypto assets.
5) CoinMarketCap - The world's most referenced price-tracking website for crypto assets.