Before entering the world of trading in the cryptocurrency market, there are a set of essential information and indicators that every trader, whether a beginner or intermediate, should be aware of. Ignoring these indicators can lead to random decisions and unexpected losses.
1. Trading Volume
One of the most important indicators that reflect the market's interest in a particular currency. For example, Bitcoin recorded a daily trading volume exceeding $25 billion in the last 24 hours. A high trading volume indicates high liquidity and ease of entering and exiting trades.
2. Market Capitalization
Gives an idea of the project's strength and stability. For example, the market capitalization of ETH is currently around $440 billion, making it the second largest currency after BTC.
3. Circulating Supply vs Max Supply
Understanding the number of currently available coins compared to the future maximum is important for evaluating scarcity. For example, the circulating supply of BTC is currently over 19.7 million units out of 21 million.
4. Community and Technical Support
A currency like XRP is supported by an active community and real banking projects, which raises its perceived value in the market.
5. Volatility
The cryptocurrency market is known for its sharp volatility. A currency like PEPE can move by 10% up or down in just a few hours, opening the door for quick profits but requiring high risk management.
6. News and Regulations
Any news from a central bank or regulatory body can either raise or drop a currency. For example: The decision of the US Federal Reserve regarding interest rates directly affects market performance.
7. Technical Analysis Tools
Such as moving averages (MA) and the Relative Strength Index (RSI). The 50-day average vs. the 200-day average is used to determine the overall trend (upward or downward).
Summary:
Success in the cryptocurrency market does not rely on luck or blind imitation, but on a deep understanding of the fundamental indicators and the ability to analyze them. Before any trading step, be prepared with information, not with adventure.
