Give us a like and we'll keep you in the loop.

We use cookies

We use cookies and other tracking technologies to improve your browsing experience on our website, to show you personalized content and targeted ads, to analyze our website traffic, and to understand where our visitors are coming from. By browsing our website, you consent to our use of cookies and other tracking technologies.

You like what you see?

Make sure to click follow and we'll update you about any new content!

Follow
Owl thats trying to tell a message
A tiny snow flake A lil bit bigger snow flake
The TECH Magazine offers a wide range of articles focused on the technology world. You'll be able to enjoy tech news, latest gadget rumors, futuristic tech speculation, 3-D printing, release dates, tutorials, game video reviews and much more. If you are passionate about technology and innovation then our TECH community is most definitely going to be worth your while. Stay connected!

HOW TO PREDICT CRYPTOCURRENCY PRICES

by Susan James
by Susan James

Bear in mind that when we talk about predicting the prices of cryptocurrency, we are talking about predicting a price range.

It is a proven fact that no one can predict the specific price of crypto

Having said that, let's discuss in details 3 proven methods you can use to predict the price of any cryptocurrency.

Method #1: The News

Listening news about cryptocurrency is one proven method you can use to predict the price of cryptocurrency.

Bitcoin forum, bitcoin magazine and even Reddit are 3 useful sites where you can always visit for news related to any cryptocurrency.

Even if you don't know the Reddit link for a particular crypto, you can use google to search it.

Assuming you want to search for the Reddit link for Ethereum, just open google and type in “Ethereum Reddit” (without the quotes of course).

Then, open the first link from the search results.

You can repeat this process for any other cryptocurrency.

Here are 3 examples of such news;

  • When there are major market exchangers interested in a particular cryptocurrency. For example, recently, Litecoin was listed on the coinbase exchange
  • When a major company invests in that cryptocurrency. For example, when Microsoft became a major investor in ether
  • When a particular cryptocurrency is being promoted by majority of cryptocurrency entrepreneurs

Generally speaking, prices of cryptocurrency react to demand and supply; when there are higher demand and less supply, prices will rise. The reverse is also true, when there is a decrease in supply and there is a high demand, prices will drop.

Method #2: Ask These 3 Vital Questions

Also, when you want to predict the price of any cryptocurrency, search for the answers to these three important questions:

  • What value is the cryptocurrency bringing to the market? If there is a value, what impact will this value have on the price of the cryptocurrency?
  • Does the cryptocurrency have a use case in the market? If yes, how is this use case applicable to the market? For example, the use case for bitcoin is that it is a store of value
  • Has there been an increase in the volume of trade on the cryptocurrency? Note that this is only applicable if the cryptocurrency is being traded on the trading exchange.

Method #3: Use Node Count Number

Bear in mind that this method will help you to predict future price movements of any cryptocurrency.

It is not capable of making any short-term predictions.

The reason is that cryptocurrency is highly volatile.

In contrast to other speculative instruments such as stocks, mutual funds, and commodities, cryptocurrencies can be predictably analyzed since it has a highly reliable built-in indicator and the network effect determines its overall values.

You can use a currency's block explorer data to find its node count number.

For example, when you select a currency on Cryptoid and navigate to its network tab, you will find its node count number.

This number determines the number of people using that specific currency you have chosen.

Thus, you can predictably assume that the higher the node count number, the more the number of people using that cryptocurrency and thus, the more valuable the cryptocurrency.

Method #4: Technical Analysis

Technical analysis is another major tool you can use to analyze the cryptocurrency market.

You can use the data from this type of analysis to have a better understanding of the market bias and identify major trends in the market.

Price trend is one major assumption made in the technical analysis.

Also, if you want to identify and confirm trends in technical analysis, you would need to use trend lines.

A trend line is a straight line.

It can be used to connect at least two price points and also be extended to the future to determine lines of support or resistance.

However, I strongly suggest that you combine fundamental factors and technical analysis to give you a near-perfect prediction and consequently, a wise investment decision.

Conclusion

You just learned how to Predict Cryptocurrency Prices by using the news, asking the 3 vital questions, using the node count method and using technical analysis.

And now there’s just one thing left for you to do: take action.

However, before I leave, let me share with you one more important tip:

Always combine all the methods before you make your investment decision.

If anything feels “off”, don't invest at that time - I assure you that there will always be another one.

This article was originally published on @susan_james