#TradingTypes101
@heatmap
A heatmap of crypto is a visual tool used to quickly understand the performance of multiple cryptocurrencies at once. It displays color-coded data (usually red and green) that reflects how different cryptocurrencies are performing over a specific time frame.
🔥 What a Crypto Heatmap Shows:
🧠 How to Use a Heatmap:
1. Quick Market Overview: See if the market is mostly red (down) or green (up).
2. Spot Trends: Identify sectors moving together, like all DeFi coins pumping.
3. Find Opportunities: Look for outliers—coins performing better or worse than the market.
4. Risk Management: Understand which coins are more volatile or consistently bearish.
🛠 Popular Crypto Heatmap Tools:
1. Coin360 – One of the most popular heatmap tools.
2. Crypto Bubbles – Interactive bubbles with animations.
3. TradingView Heatmaps – Offers performance by sectors and coins.
4. CoinGecko – Provides a clean heatmap and sorting tools.
🧩 Advanced Uses:
Use heatmaps alongside technical analysis and fundamentals.
For day trading or scalping, focus on short-term heatmaps (1h or 24h).
Combine with sentiment analysis (e.g., news, social trends) for deeper insight.
