Statistically, almost 90% of newcomers who just enter the cryptocurrency market arrive late and lose their first investment. Unfortunately, even after that, beginners begin to ask similar questions:
- Why did I lose my money by investing in this or that cryptocurrency?
- Was it worth buying Bitcoin and altcoins now?
- When is it better to buy cryptocurrency?
How to buy cryptocurrency?
Trading or investing is not an easy process, if you think you can come to this market, buy coins and just make money, then every second person would become a millionaire. But statistics say the opposite, only 5-10% of market participants earn. And in this article, Bikotrading will share with you life hacks that have gained over 8 years of trading. These 100% tips will help you correctly determine the best places to buy and be among those who earn on cryptocurrency.
If you look at the price chart without prior analysis, you will probably find it difficult to say what will happen next, and whether to buy cryptocurrency here.
But this is only at first glance. In fact, there is an important level of resistance on the chart. The breakdown of this level led to a sharp rise in prices.
The ability to identify important levels will give you the opportunity to correctly identify places to buy or sell cryptocurrency.
In the chart above, another example of how price responds at the level of support and resistance. Only in this case you could earn several times by buying cryptocurrency during the support level test and also several times on the breakdown of the resistance level. It may seem like a difficult and time consuming process, but it’s only worth a couple of hours of your time and you can easily do it.
During a sharp fall in prices, the cryptocurrency market is usually freed from weak hands (people who sell their coins in the red and people who used big leverage). Such periods are also often called market capitulation. The liquidation rate and volume can help us identify these places. As you can see in the charts below, these moments were a good opportunity to buy and invest.
Long period of accumulation
Big players can’t buy cryptocurrency at the touch of a button. All because of the fact that such a number of sellers (or rather the coins they sell) may simply not be. If they buy cryptocurrency at once for all their money, the price will just soar. That is why they do it long and gradually. Once they have accumulated enough coins the price quickly moves up. Long-term accumulation of prices makes it possible to identify such moments and follow the big players together in one direction.
In the chart below you can see a great example of this. After a long accumulation (130 days), there was a breakdown in the trading range and rapid growth of 800%.
We recommend using these examples in your own trade and investment. Even with these simple rules and techniques, you can avoid mistakes and start to increase your capital quickly. You can find even more useful articles here ! Also subscribe to the Bikotrading channel telegrams and stay up to date with all the news from the world of cryptocurrencies.