Approximately 90% of newbies to the bitcoin market arrive too late and lose their first investment, according to statistics. Unfortunately, newcomers continue to have similar inquiries after that:
- Why did I lose my money investing in this or that cryptocurrency?
- Should You Buy Bitcoin and Altcoins Now?
- When is the best time to buy cryptocurrency?
- How to buy cryptocurrency?
Trading or investing is not an easy process, if you believe that you can come to this market, buy coins and just make money, then every second person would become a millionaire. But statistics say the opposite, only 5-10% of market participants earn. And in this very article, Bikotrading will share with you the life hacks they have gained over 8 years of trading. These tips will 100% help you correctly identify the best places to buy and be among those who earn from cryptocurrency. Bitcoin360ai helps you out if you want to start away.
Levels are important
If you look at the price chart without a preliminary analysis, it will probably be difficult for you to say what will happen next in a similar situation, and whether it is worth buying cryptocurrency right here.
But this is only at first glance. There is an important resistance level on the chart. A breakdown of this level led to a strong increase in price.
The ability to determine important levels will allow you to correctly determine the places where you should buy or sell cryptocurrency.
The chart above is another example of how price reacts to support and resistance levels. Only in this case, you could earn several times on the purchase of cryptocurrency during the test of the support level and also several times on the breakdown of the resistance level. It may seem like a complicated and long process to you, but it is worth allocating just a couple of hours of your time and you can easily do it.
During a strong price drop, the cryptocurrency market tends to get rid of weak hands (people who are selling their coins in the red and people who have been heavily leveraged). Such periods are also often called market capitulations. Liquidation rate and volume can help us identify these places very well. As you can see in the charts below, these are the times that have been good opportunities to buy and invest.
A long period of accumulation
Big players can’t buy cryptocurrency by clicking one buy button. All because there may simply not be such several sellers (or rather, the coins they sell). If they buy cryptocurrency with all their money at once, the price will just skyrocket. That is why they do it for a long time and gradually. Once they have accumulated enough coins, the price moves up quickly.
A long price accumulation makes it possible to detect such moments and to follow the big players together in one direction.
You can see a great example of this in the graphic below. After a long accumulation (130 days), there was a breakout of the trading range and a rapid growth of 800%.
We advise you to use the given examples in your trading and investing. Even with the help of such simple rules and methods, you can avoid mistakes and start quickly increasing your equity.