1. Basic analytical skills:
Fundamental analysis helps people have a complete picture of the market. It includes 3 important things: macro analysis, economic analysis, project analysis. The crypto market is gradually developing and growing, so it is more clearly affected by economic policies. PTCB helps you understand the economic cycle, cash injection cycle, credit policies..., understand the internal value of the project such as tokenomics, who is the dev team behind it, what funds invest in that project and future development prospects. PTCB is suitable for long-term investors.
2. Technical analysis skills:
An analytical method based on indicators on price charts or graphs and trading volume to forecast the price trend of a coin to make accurate trading decisions. Investors will use charts and indicators to consider how the supply and demand fluctuations of that coin will affect the price and trading volume, thereby deciding when to buy at the present time. hold or sell. Tools commonly used in technical analysis include:
- Price models
- Technical indicators (price trends, volume indicators, oscillators, moving averages, moving average convergence/divergence)
However, this method is usually only used to identify short-term trading signals. As for the long-term trend, there are also many indicators that support this and need to be combined with fundamental analysis to get an overview.
3. Onchain analysis skills:
Onchain data is understood as data located on the blockchain, and blockchains are blockchains linked together through nodes and distributed throughout the subcomputers in the network. This data is honest, public and transparent because blockchain blocks are a decentralized peer-to-peer system. The onchain data mentioned could be:
- Data about Blocks (time, gas fees, miners,...).
- Data about transactions (wallet addresses of participating parties, number of transfers, which tokens to transfer,...).
- Interactive actions with Smart Contract (add liquidity, participate in administration,...).
- Whenever you perform an action on the Blockchain, that action will be verified by the nodes, and will be updated to the overall Blockchain network.
Thanks to this information, we have accurate real-time information, knowing the actions of large traders, investment funds, and influential figures in the crypto world more easily. . Thereby helping to check and monitor transaction actions, build smart money wallets to help you support, predict and make investment decisions of these "sharks" to identify possible waves. out in the short and long term.
Onchain analysis is a difficult, in-depth skill that requires a lot of time, knowledge and experience due to the need for regular real-time updates to capture quick transaction actions in the short and long term.
4. Capital management skills:
Capital management is always the key to success in any market, any investment style, not only crypto but also other financial markets. Always control and estimate the amount of money you can lose. If you want to manage capital well, you must always evaluate possible future scenarios. If the risk is greater than the profit, you must immediately have a plan to cut losses or reduce the investment amount to avoid depleting your capital. We cannot stubbornly invest while the risk ratio exceeds 80%. For traders, always set a stop loss, because otherwise the risk of burning your account can come at any time, especially for futures trading. For long-term investors, reasonable allocation is based on available capital and the allowed profit level of each project. It is impossible for a project of several billion dollars to be x50 100 times and vice versa. Make an investment plan, forecast targets and prepare for risk scenarios of losing money from the market such as projects being hacked, trading floors collapsing... Always remember that if you have money, you still have a chance.
5. Skills to manage wallet security and protect assets:
Crypto is a decentralized market, blockchain technology has many outstanding advantages, however security has never been a simple issue. Every day hacker groups still find ways to take away our crypto assets. As long as you reveal some information, they can easily steal it and cannot be traced. Ways that you can lose assets include hacked exchanges, swapping strange tokens sent to wallets, connecting to fake websites... The crypto market is decentralized so each individual needs to secure their own address. only your wallet by saving the password to protect the wallet in a safe place not connected to the internet. For wallets that make airdrops or play shitcoin, avoid connecting to strange websites, airdrop scam information, scams receiving money on twitter or tele. If you hold assets long-term, you should use top reputable exchanges, or transfer coins to a cold wallet.
Any crypto investor needs to be equipped with basic knowledge about wallet security. Even people who have been in the market for a long time, or kols, are completely hacked without knowing the cause. Learning how to protect your assets and prevent risks from hackers is the first lesson that everyone should read.
6. Emotion management skills:
Greed and fear are always two extremes that go together in the crypto market. These emotions can disturb investors' psychology when they do not know how to manage them. When the coin price increases, greed is pushed up, they do not set a profit-taking target but continue to push, x2 then want x5, x5 then want x10, x10 then want more, so after the price turns down, they are trapped. reverse loss. During an uptrend, investors experience feelings of confidence, optimism, and nervousness. This often leads to fomo near market tops. You must set realistic expectations before entering a trade and exit the trade when expectations are met instead of pushing profit targets further.
On the other hand, investors experience complacency, anxiety, and denial, during a downtrend, which often leads to panic selling near the market bottom. To avoid such actions, you must have a clear understanding of how much risk you are willing to accept before investing. Let stop-loss orders help you not lose a lot of capital and wait for high-probability opportunities to appear before entering the next trade. Many of the emotions that come up when trading are predictable, but if you don't recognize when you're experiencing them, they'll be harder to manage. You must know when you feel too optimistic or too nervous when executing your trading plan. So, the lesson learned is:
- Emotions in trading are inevitable, so it is important to recognize and manage them so as not to lose control.
- The best way to manage emotions when trading is to make a trading plan and trade according to the plan.
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