Virginia Harris - Handbook For Cryptocurrencies Trading: Learn how to evaluate the most interesting and profitable projects using technical, fundamental and on-chain analysis

HANDBOOK FOR CRYPTOCURRENCIES TRADING

Learn how to evaluate the most interesting and profitable projects using technical, fundamental and on-chain analysis

Author: Virginia Harris

Table of contents

Revolution is not tied to any ideology, nor is it a fad of a particular decade. It is a constant process inherent in the human soul.

Abbie Hoffman

The world of cryptocurrencies is divisive. Loved by some, misunderstood by many and hated by many, it is seen as an easy money opportunity and a chance to become a crypto millionaire in exchange for a few sleepless nights spent analyzing indices and charts.The truth, as so often, lies in the middle. First of all, cryptocurrencies offer a decentralized solution to the problem of economic exchange. We refer to transactions that are not brokered by a third party - such as banking institutions and governments. And the digital sector (and beyond) is relentlessly working to rid bitcoin and altcoin of the cursed currency aura that Satoshi Nakamoto's revolution was doomed to have early in its history. The diversification of cryptoeconomic projects is the starting point to understand both the mechanisms of currencies and the functioning of the "block chain" technology that makes them possible: the blockchain .

In such a scenario, the new trader's job is to embark on a brief study tour to clarify the top critical questions about Bitcoin and Altcoin. How to trade safely? What strategies for short and long positions to use to take advantage of the profit opportunities in the crypto universe? Or how can "alternative coins" successfully diversify your wallet? To answer these (and other) questions, we've put together an easy-to-follow guide. Indices, charts and historical analysis help you understand market fluctuations, which are often considered unpredictable even by professional traders. The goal? We provide you with all the tools you need to invest in cryptocurrencies other than the more well-known Bitcoin and Ethereum. The term Altcoin refers to all cryptocurrencies that were modeled after Satoshi Nakamoto's Bitcoin. These cryptocurrencies differ both in terms of the size of the blockchain network they are based on and their market capitalization.

Emerging projects and more stable currencies are seen as fundamental to diversifying a cryptocurrencys earnings. By choosing valid altcoin, you can achieve two important goals: A) reducing the overall risk of your wallet, and B) gaining a 36 understanding of the great opportunities in the crypto marke . And indeed, altcoins include stablecoin , DeFi , platform token and - for the really brave - even newly launched meme coin . If the above terms don't sound familiar to you, you've come to the right place. In the following chapters, the main players in the altcoin world are presented in detail, with a focus on the most important projects within the different cryptocurrency categories. On the other hand, if you feel that you have the knowledge to handle the trading stages competently, you should focus on the first part of the guide: we give you investment recommendations on fundamental analysis, technical analysis and trading Processes required to "play" the markets safely.

Dear reader, when we decided to write the book you are holding in our hands, we asked ourselves: Does it really make sense to put all information about altcoin in one text? Isn't it that the internet already offers so many free and easy-to-use online resources? The answer is yes. If we wanted to summarize the content of millions, billions of websites on Bitcoin & Co. , we would have published a twelve-volume encyclopedia! Therefore, we took a different editorial path: we focused on the process we followed ourselves to differentiate our crypto wallets and get good results with different altcoins. On the following pages you will find a list of handy tips, websites, investment platforms, statistics, analytical tools and more to help you achieve your cryptoeconomic goals in record time . In addition, we would like to remind you that trading alternative coins requires far more market sensitivity than buying small shards of Bitcoin (the Satoshi). The reason for this is the high volatility of the market: positive and negative fluctuations ( bull market and bear market ) can have a huge impact on the "health" of your wallet. Therefore, before buying a meme coin that excites you and arouses your curiosity, it is worth thoroughly and conscientiously analyzing its fate - as much as possible .

One last note: investments always involve risk. We often fall into the trap of thinking that trading is a game for everyone - newbies looking for a thrill and pros looking for a quick buck. However, one only has to look at the market revolutions of the last decade to see a truth with a capital W: the roller coaster of values is not a distant possibility but a concrete reality. Analysis of Bitcoin's history shows that the peak in the final months of 2017 - when the price of 1 BTC broke all records, at least up to that point - was followed by a two-year bear market (which tends to end in March 2020). It follows that the bull market of the last few years is no justification for being careless or investing in bitcoin/altcoin unknowingly. It is better not to try yourself as a trader, especially if you have the opportunity to thoroughly familiarize yourself with the tools needed to navigate the vast ocean of "alternative coins" even in stormy times.

Don't let our call for caution discourage you though: risk reduction is possible, investing smart is easier than you think. In short, the facts are far more nuanced and heterogeneous than the dominant rhetoric on TV or in the newspapers: cryptocurrencies are an undeniable economic revolution. Being part of it means experimenting, studying and testing new investment strategies in a market that has many more surprises in store for the future.

Would you like to get involved?

Don't forget to apply our step -by-step trading tips and continue to delve into how cryptocurrencies work (from basics to advanced terms) with a burning thirst for knowledge.

Bitcoin will do to banks
what email did to the postal industry

Rick Falkvinge

Analysis is the trump card traders use to determine the validity of an investment. Under the term validity, we distinguish two main speculative macro areas: the first focuses on the long-term buying and selling of cryptocurrencies, the second on short-term price fluctuations (often reduced to a time window of just 24 hours) to predict possible price changes. In case number 1, those who bet on cryptocurrencies in order not to sell in the short to medium term (long position) will evaluate the potential of a coin or project as a whole (white paper, native or non-native blockchain, reputation, management and governance , marketing and token sponsorship, benefits, long-term goals, etc.). This set of metrics is called fundamental analysis and is the topic of this chapter. On the other hand, traders interested in predicting short-term fluctuations in value (short position) will resort to various indicators: moving averages, TA data, charts and candlestick diagrams, but also trend lines. This study is called technical analysis and requires an approach diametrically opposed to the above.

Leaving aside the basics of Technical Analysis (TA) let's take a closer look at the components of Fundamental Analysis (FA). As mentioned earlier, altcoins vary enormously in terms of blockchain size and security, market cap, token type, and long-term projects. In addition, each cryptocurrency is based on a different reward and verification system (PoW or PoS), which further complicates the analysis phase for a novice trader. In any case, we recommend that you don't get discouraged and throw in the towel at the slightest difficulty: an altcoin's many, many variables are an unbeatable asset. In the vast majority of cases, many professional traders have long underestimated the usefulness of properly conducted fundamental analysis. However, in our opinion it is not possible to take your investments to the next level without having an understanding of crypto projects as a whole.