In the cryptocurrency market, some crypto tokens have seen a downward correction, a trend that has affected Ethereum despite the excellent prospects for the future. In the last month ETH lost about 7%, compared to an increase in 2021 of over 549%, still leading to a market cap of less than half the market capitalization of Bitcoin.
A sharp decline also affected Litecoin, with a drop in the price of 31% in the last month, while in 2021 the trend remains positive with an increase of over 30%. The fundamentals of cryptocurrency are still strong, with many analysts predicting the possible trend reversal for Litecoin already in the first months of 2022.
Instead, it goes against the trend Ripple, the third cryptocurrency by market cap after Bitcoin and Ethereum, with a price increase of 70% since the beginning of the year despite the dispute still open with the SEC in the United States.
Ripple is working on a number of projects that they could push the price higher in 2022, including the development of some state cryptocurrencies and new cryptocurrency technologies for financial companies.
How to analyze cryptocurrencies with technical and fundamental analysis – Volatility in the cryptocurrency sector is an aspect to be aware of when investing in crypto tokens. To better understand the prospects of digital currencies, it is always necessary to start fromtechnical analysis, studying the crypto quotation in real time on specialized portals such as cryptocurrencies.io, a website where you can find updated prices and useful information for investing in the currency markets.
The analysis of the price trend, in fact, allows to obtain a series of fundamental indications to plan effective strategies, they use indicators and oscillators to gain essential insights to understand how to invest in crypto tokens. Also you can discover the better investment opportunities, identifying digital currencies that can offer interesting potential to open short or long-term positions.
In addition to studying the graphs, it is also essential to combine thefundamental analysis, an approach aimed at evaluating the macroeconomic factors that can affect the performance of cryptocurrencies. These are aspects such as regulations, bans applied in some countries and statistics on the spread of the use of digital currencies, including new projects that revolve around crypto tokens and blockchain technologies.
The integration of technical and fundamental analysis allows you to better understand the situation in the cryptocurrency market, choosing more accurately which digital currencies to aim for based on your investment objectives. No less important is the optimization of the strategies risk management, using the indications obtained from the study of the graphs to correctly set stop loss and take profit and improve the diversification of investments.
What are the possibilities for investing in cryptocurrencies? – Once you have understood which crypto tokens to invest, when to open a position and the right approach to money management, all that remains is to decide whether to operate with the CFD online trading or whether to buy cryptocurrencies at an exchange. In the first case, we speculate on price changes, using contracts for difference and the services offered by regulated brokers.
In the second case, these are long-term operations, depositing the cryptocurrencies purchased in a physical or digital wallet and waiting for them to acquire value and then resell them. Both options are potentially valid, as long as they are inserted within one conscious and planned investment strategy, with the possibility to choose just one approach or to adopt both according to your preferences.
On the other hand, the opportunities in the cryptocurrency market are numerous, considering that they exist today thousands of crypto tokens, with tons of emerging digital currencies and new blockchain technologies with good growth potential.
Obviously it is important to be cautious and invest conscientiously, trying to exploit the opportunities available without taking excessive and unsustainable risks in the long term, but on the contrary by operating intelligently with a right approach to risk management.