When it comes to crypto price predictions, cryptocurrency enthusiasts tend to utilize different techniques to predict the market direction. Some individuals watch the videos of popular crypto space YouTubers such as Coin Bureau or Shark Numbers, while others rely on their intuitions to make decisions. Some prediction techniques work better than others do. This article will review some of the more reliable strategies that any individual can use to maximize their profits while buying and selling crypto. Below is a list of top strategies to help one predict future cryptocurrency prices in 70%+ of cases.
How to Predict Crypto Prices
Retail investors who capitalize the most from cryptocurrencies rely on numbers, not their emotions. Wealthy folks follow at least one of the three main strategies listed below.
Number 1 – Technical Analysis
Technical analysis is a comprehensive study involving indicators, including historical price movements, trading patterns, and price charts. Technical analysis is an essential skill that every serious trader or investor practices in one form or another.
Number 2 – Fundamental Analysis
Unlike technical analysis, which focuses on patterns and indicators, fundamental analysis is mainly positioned within the frames of evaluating the overall market aspects. That being said, investors and traders who practice fundamental analysis focus on an overview of various domestic and global factors associated with the market.
Fundamental analysis involves measuring a cryptocurrency’s intrinsic value. To determine a security’s intrinsic value, one needs to examine financial and economic factors. Experts look at microeconomic indicators and comprehensive studies of consumer behavior to run fundamental analyses.
Number 3 – Quantitative Analysis
Quantitative analysis is just as important as fundamental or technical analysis. When it comes to quantitative analysis, traders and investors mainly focus on the historical performance of an asset to determine its future. Financial ratio calculations and discounted cash flow calculations are some of the most common activities that are performed during the quantitative analysis.
The fundamental concept of quantitative analysis lies within the frames of mathematical and statistical modeling.
Simple Way of Predicting Cryptocurrency Prices
While obtaining an understanding of the above forms of analysis is important and beneficial, studying the principles of technical, fundamental, and quantitative analysis takes time. It may take several years for an individual to master one of the forms of analysis. So, many retail traders and investors rely on tools that are designed by experts within the field to help them make the right investment decisions. One such tool is 4Bulls.
4Bulls is a platform that offers a set of tools that are designed to help retail investors and retail traders make smart market decisions. There is a Crypto Price Prediction section that lists cryptocurrencies with something like a triage system that weeds out high-risk, low-reward coins and tokens and steers users toward what it deems to be lower-risk, higher-reward assets. The tool also provides a probability estimate for the price development of a particular asset. The basic features of the tool are free; premium features are paid.
If you would like to find a more convenient way to make money while trading or investing cryptos, you can visit the 4Bulls platform and use its Crypto Price Prediction tool. It lists pretty much everything that you need to know. Just remember that financial operations can be risky and can result in potential losses. Always run your own research before risking your money.