Cryptotrader is an extremely difficult but very promising profession. Especially when it comes to the cryptocurrency market. What basic analysis methods do I need to know to become a trader?
Cryptotrader
The cryptocurrency market is directly related to finance. And in its essence and functionality, it resembles classic financial and stock markets. The most obvious way to make money in cryptocurrency, just like in the stock market, is trading. It has its own specific features and differences, but the general concept is not inferior to the classic options. Let’s understand, who is a crypto trader in the cryptocurrency market and what materials should be studied to become one?
Who is a cryptocurrency cryptotrader?
A cryptotrader is a person who deals with buying and selling digital assets on a regular and professional basis. A trader’s task is to choose a coin (or the market as a whole), analyze it using various analytical tools and make a decision to buy with the possibility of further growth of the asset price and, accordingly, to sell.
Traders are different from other people involved in cryptocurrency. Trading is a full-time job. A full busy day and sleepless nights. But the rewards are also great if you succeed.
The trader’s path: where to start?
If you are interested in analytics and cryptocurrencies, and you are willing to spend a lot of time in front of the computer, then you should go to study to become a trader. Of course, there are no such specialties in classical universities, but there are many training courses that will help you understand exactly how to analyze coins.
You need to know and clearly understand the different types of market analysis. This is what you will be taught in places like this. Remember that good courses are quite expensive (from $1,000). And there is a lot of scam (cheating) on the Internet and you can easily be cheated for money.
So it is worth to look first at a channel or, for example, a social network which offers you training services.
There is a basic set of analytical tools that every trader should know. The more and better you know them, the better your chance of becoming a successful trader and earning well.
The basic analytical tools include:
1) Elliott Wave Theory – interpretation of financial behavior through visual patterns (waves). It is necessary for predicting the market in the long term.
2) Technical analysis. It is necessary for predicting the price of an asset in the short term.
3) Fundamental analysis. Analysis of the situation in the world and dependence of one factor on another. It is necessary to pay attention to it, as it can be decisive in determining the price and level out the previous two factors. For example, due to the pandemic, the bitcoin exchange rate will go down, even though the previous methods show the opposite.