Many traders use Technical Analysis (TA) to predict market trends. This includes analyzing past patterns, trading volumes and market indicators to make predictions about where the price may head. Common indicators include the Relative Strength Index (RSI), Moving Averages, Moving Average Convergence Divergence

The trading market is respesented by ‘candles’ that shows market behavior. A candle represents a particular timeframe where trading of an asset occurs. There is a 1min, 5min, 15min, 30min, 1hr, 1day, 1week, 1month timeframe. For example, a candlestick you see in the 15min timeframe represents 15 minutes of trading. If a candlestick is red, it means the price closed lower than it opened translating to loss and if green, the price closed higher than it opened, translating to profits

Here is a practical example: If you’re trading BTC/USD and buying price of 1BTC~93,030 and selling price 1BTC~93,000 and you predict price of Bitcoin is going up so you buy at 93,030 then the buying price shoots up to 100,030 selling price to 100,000. At that point you decide to take profit, so the profit is the difference made [100,030–93,030]=7,000

Adopting the best practices in the Crypto world

Unlike regular stock markets, cryptocurrency markets don’t have set opening or closing times, which makes them special. Since cryptocurrency trading is open around-the-clock, you can trade whenever you want. This is because cryptocurrency is decentralized, meaning that exchanges all across the world operate constantly without a centralized authority controlling particular hours.

Even though the markets are open around-the-clock, depending on market activity and liquidity, there are several times of day that are generally better for trading.

Best Times for Trading

1. High Liquidity Hours (Overlap of Major Markets)

Because it provides more liquidity and volatility, the period when the U.S. and European markets overlap is typically a favorable time to trade. Usually, this occurs from 8 AM to 12 PM EST (1 PM to 5 PM GMT).

Activity often occurs during the times when Asian markets, such as those in South Korea and Japan, open, particularly for coins that are in great demand in Asia.

2. During Active Market hours

Weekdays are generally more active, particularly Monday through Thursday. Trading volumes tend to drop over the weekend, especially on Sunday, which can lead to higher volatility and lower liquidity.

3. Avoiding Extreme Volatility:

• While high volatility can offer opportunities for profit, it can also increase risks. New traders, in particular, may want to avoid times of rapid market movements unless they are experienced.

Key Tips

Make Use of resources: If you’re not sure when your approach will work best, think about employing resources like trading bots and market analysis to monitor volatility trends.

Keep up with news events: Monitoring developments can also help you time your trades because significant news about cryptocurrencies might affect market fluctuations.

Goals and Objectives of Investing in BTC

As you venture into the cryptocurrency industry, you must ask yourself what goals are you planning to achieve? If you are able to answer that question then you will be able to make wise investment decisions. You have to understand that there are three types of investment goals in the crypto market:

1. Short-term

2. Mid-term

3. Long-term

Of importance is that you focus on your midterm goals. Short-term and long-term goals are of secondary importance. Mid-term investment in crypto assets means that you have a projection of 1–3 years. In the midterm, one can realise exponential returns. As you are investing in the midterm, you can decide to learn the skills that will earn you money in the short-term e.g Decentralized Finance. Once you have made good returns in the midterm then you can allocate some of your resources in the long-term and you will realise even greater returns once maturity has been realised.

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