I know what you’re thinking right now.
The world of Cryptocurrency is known to be volatile to the core. So, how can anyone predict the future for them? Is this some kind of sorcery?
In my opinion, it’s more of an educated guess, you know.
To make the correct prediction, you’ll need to learn about the market, do some research, and know about the core concept of Crypto.
Do you want to know more about it?
Then, don’t forget to stay with me until the end. There’s a lot to come!
How Can You Predict The Price Of Cryptocurrency?
Usually, the price or anything related to Cryptocurrency is analyzed through three different proceedings. Or, you can opt for an application like Immediate Edge to get some help with it.
Option - 1: Fundamental Analysis
The aspect of fundamental analysis is about evaluating each and every part of the Crypto market. It may include both global and domestic factors, as well as the current economic and political condition of a country. After all, each of these elements tends to affect the price of Cryptocurrency pretty massively.
Option - 2: Technical Analysis
While working on the subject of technical analysis, you’ll need to focus on the statistics of the market more than anything else. You can begin with the historical price movement first and then check the patterns correctly. I’ll ask you to create a price chart so that you can track everything and get the information you’re looking for right away!
Option - 3: Quantitative Analysis
The quantitative analysis focuses more on the historical performance of the market. Hence, to make a successful judgment, you’ll need to compactly utilize both fundamental and technical evaluations together. This type of analysis is usually done through any form of financial ratio calculation, like discounted cash flow and earnings per share.
Is There Something Else You Should Do?
Investing in the market of Cryptocurrency isn’t easy at all. As mentioned before, the planning period for the same will be pretty huge. So, you’ll have to go through the same patiently.
Anyway, let’s move on to the main topic, then.
As mentioned before, when you’re starting out, you should always begin by checking out the previous ups and downs of the market. You have to start from the beginning (i.e., 2009, if it’s possible) and note down everything until the current date.
It’d give you an idea about how volatile the Crypto market has been and plan your investment scheme accordingly.
Now, once you’re done with it, you’ll need to focus on the next best thing - how the chosen Cryptocurrency has performed in terms of sales?
Are people in your country investing in them? Do you feel that it’s not a scam and, therefore, is safe to invest in? Yes, that’s what you need to answer when it comes to investing in Crypto.
Finally, you’ll need to see how well your nation’s financial status looks like? If it’s well and good, you can always start investing without thinking too much. However, if you feel like the economic condition of the country won’t be the same later on, don’t invest.
FAQs - Frequently Asked Questions
Yes, yes, I know I’ve discussed enough of the titular topic as of now. However, I feel like you still might have confusion or two about. So, this section will try to help you out in this regard through a question-answer format.
Is There Any Way To Predict Cryptocurrency?
Well, almost any kind of Cryptocurrency is challenging to predict. However, if you go through and analyze the current market, you can make strategies to reduce your risk of losing.
How Accurate Are Crypto Price Predictions?
Pretty accurate, as long as the predictor is using the right strategies and parameters. However, I’ll still ask you not to depend on another website too much and try analyzing it yourself.
Can AI Predict Crypto Pricing?
Yes, it can, to some extent. However, it doesn’t really work out perfectly in most cases. So, again, I’ll ask you to put all your trust in yourself.
The Bottom Line
Now, I’ll be concluding this article. Hopefully, I could offer as much information as possible through this blog. However, if you need any other data in this regard, don’t forget to tell me about it in the comment section. I’ll help you out in any way I can!