CoinDesk 20 is a tool that represents a list of the 20 most traded and analyzed crypto assets in the market. This regularly updated and analyzed list can be an important assistant for those taking their first steps in crypto trading. In this article, we will discuss how CoinDesk 20 can be useful for beginner traders and what data and analytical capabilities it offers for making informed decisions.
What is CoinDesk 20?
CoinDesk 20 is a list that includes 20 cryptocurrencies selected based on trading volume analysis on leading exchanges. It includes the most reliable, liquid, and discussed crypto assets, including market leaders like Bitcoin (#BTC ) and Ethereum (#ETH ), as well as other popular coins among traders. The list is based on trading data, making it an excellent guide for novice investors.
How can you apply CoinDesk 20 in practice?
An objective benchmark in the market
Beginner traders often face challenges when selecting crypto assets due to the vast number of offerings in the market. CoinDesk 20 helps highlight those assets that truly attract the attention of a large number of investors and have high liquidity. This simplifies analysis and allows focusing on the most popular cryptocurrencies rather than lesser-known coins with high volatility.
Reducing risks when selecting assets
Assets represented in CoinDesk 20 have undergone a kind of test of time and trading volumes. For beginners, this reduces the risk of encountering dubious projects and 'meme tokens' that are often subject to sharp price changes and manipulation risks. By choosing cryptocurrencies from the CoinDesk 20 list, beginner traders can be more confident that they are investing in assets with greater liquidity and market capitalization.
Analytics and news for informed decision-making
CoinDesk provides analytical data and news on the assets from the list, which helps beginner traders track key events that may affect the price. It is important to understand that the crypto market is influenced by news and sentiment, and access to timely information gives beginner traders the opportunity to quickly respond to changes. For example, updates on projects like Ethereum's network upgrades or regulatory plans for Ripple (XRP) will help beginners better navigate price dynamics.
Long-term and short-term trends
CoinDesk 20 is regularly updated, allowing traders to monitor long-term trends affecting the market. Beginners can use data on crypto assets from the list to analyze historical growth or decline of assets, studying how and why their value changes. This is an important skill that helps traders approach decisions about buying or selling assets with awareness.
Tools for technical analysis
In addition to the main list, CoinDesk offers its users access to various analytical tools that help track technical analysis indicators such as trading volume, volatility, and the buy-sell ratio. This is especially important for beginners as it helps them understand how these factors can affect the asset's price in the short term.
Examples of using CoinDesk 20 for analysis
Bitcoin (BTC): As a leading asset, BTC is regularly included in CoinDesk 20, and its movement can be used as an indicator of market sentiment. Traders can study how news about regulation or major investments affects BTC, which is useful for making predictions for the entire market.
Ethereum (ETH): Included in the CoinDesk 20 list, ETH is attractive for analysis in the context of the transition to Proof of Stake and other major network upgrades. Beginners can use CoinDesk data to analyze how fundamental changes in the network affect the price of ETH.
Ripple (XRP): In the context of long-term uncertainty surrounding XRP's legal battles, it is also included in CoinDesk 20. This helps traders understand how regulatory-related events can affect the asset's price.
CoinDesk 20 is a useful tool for those who want to understand the crypto market and learn how to analyze the most important and liquid assets. With its help, beginners can access up-to-date information and track key trends, avoiding speculative and risky assets.
