How to chose a cryptocurrency?

Learn 2 main factors to consider before you make a buying decision.

What coin? – Use fundamental analysis

Cryptocurrencies are an emerging asset class, 2020 has seen a lot of use cases like the Defi applications. But unfortunately, the open sources nature of these projects make them easy to duplicate so you have a lot of scam projects. I teach you how to avoid these scam projects projects in my LearnCrypto Course

When to buy? Use technical analysis

After a basic understanding of support and resistance, common chart patterns will help you find suitable entry points. This will help you to reduces the chances of buying at top prices. This is very common because there is always the temptation to jump in when the hype surrounding a coin is very high. For example, a lot of uninformed retail investors bought into Bitcoin around the top price of almost $20000 at the end of 2017. Only for Bitcoin price to fall very sharply afterwards.

My top tip is to learn how to and study the charts to identify support and resistance zones on higher time frames to and then use lower time frames to find a good entry point.

Also price breaking out of chart patterns like wedges, flags etc and re tests are equally important methods of finding great entry prices.

Also if buying into altcoins, the Bitcoin Dominance Chart is also a good reference point.

Want to learn more? My LearnCrypto course got you covered

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