Whether you are new to the space or not making sound choices on when to buy or sell is the ongoing struggle of any Crypto Investor, or Trader. There are primarily two ways to approach your next investment decision and while some rely heavily on one over the other, I believe that a happy marriage of both helps one make better overall decisions with their portfolio.
Crypto News
The amount that any given coin can fluctuate on a daily basis can largely depend on the news that is circulating around it from day to day. This is part of what makes Crypto such a volatile market in general. While the vast majority of news is aimed at spreading FUD (Fear Uncertainty, and Doubt) there are also very relevant pieces that do indeed have a major bearing on how the overall price action is moving. Don't get me wrong, the FUD pieces can get the market to fluctuate wildly as well, and therefore should be taken directly into consideration when planning your next move. Whether we like it or not Crypto news is a major force in moving the market, but is only one indicator of future activity.
Chart Analysis
A more in depth look at how a given coin might perform based upon past behavior is used by many Crypto enthusiasts to make critical decisions as to their position at any given time. Reading charts is a skill that requires quite a bit of dedication and self-study to become any good at. The basics can be discovered through a number of online videos and tutorials. However the ones who tend to fair well with this method put in a lot of seat time and are well practiced in short, and long trades. Recognizing patterns and correctly interpreting indicators is something that takes time to get acquainted with. That being said, it is probably one of the most powerful tools at ones disposal when managing a portfolio or executing trades. It should be noted that just because something performed well in the past does not mean it will necessarily do so in the future. This method does however provide a much more solid understanding of market behavior and in my opinion is far more reliable than speculation.
Best of Both Worlds
Regardless of you are heavily reliant on one method of market indication over the other I would like to plead the importance of giving both credit where credit is due. I think in order to get a truly get a full picture of the day to day fluctuations in the Crypto market one needs to become acquainted with both schools of thought. Where one method might have holes, the other could fill in the gaps. After all we try to stay ahead of the game in any market and completely turning a blind eye to any pertinent information could be viewed as just plain foolish. Ultimately we do not have crystal balls and cannot predict the future. The best we can do is arm ourselves with as much knowledge as possible and get as close as we can.
-Happy Trading
