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Three types of analysis are used to trade cryptocurrencies

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On 4/21/2020 at 9:45 AM, DoboniAyuuii said:

The technical ones are great and excellently needed, the fundamental is very important too. I thought the sentimental will not make good sense but it helps too. 

Yes, it is true. Emotional analysis does not depend on scientific and technical foundations, but rather depends on emotions and no feeling. I mean, you have a feeling, for example, that this currency will rise or fall and buy and sell as a result of this analysis.

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On 2/4/2020 at 4:57 AM, Crypto123 said:

Hello my friends
Initially, I did a research if the topic was already in the forum in order to avoid violating the forum rules by writing duplicate topics.
In fact, I found a topic similar to this topic, but there is a difference between the two topics in terms of the number of species and in terms of the method of explanation, so I do not think the topic is repeated.

 

Let's start now:

For cryptocurrency trading there are three types of analysis, and being able to know these types plays a big role in your success.

 

1- Technical analysis
This type of analysis is most used as it researches the history of currencies and then tells you to make the appropriate decision.
It is used to analyze charts, so looking at historical data and price movement you will be able to use this information to predict what will happen at the moment.
This type is not always successful, but there is always a certain method of analysis that prevails in use.
When you open a chart, there are many tools and effects that you can use; things like Fibonacci numbers, theories of wave patterns, moving averages for example, Japanese candles and others.

 

2- Basic analysis
This type of analysis covers a broader range of topics, as it works on economic and political analysis as well as social factors that influence prices.

It may be difficult to put these items under one brief opinion, but luckily there are sites that track events that affect prices, and this helps you to be well informed of current events as well as it is good to know everything new about the digital currencies that you want to trade. As long as you are familiar with it, you will be ready.
You don't have to become a news addict; you just need to be aware of the constant news flow.

 

3- Emotional analysis
This is the last method of analysis and it takes a personal aspect. If everyone is completely objective it will be simple just follow the indicators to make a profit. But you know very well that we all have different opinions, each person’s vision will differ for the same scheme and then the analysis will differ and therefore the results that we extract from this analysis will differ.
You have the right to define your general sense of the market, you may feel that the price should be raised because you are confident. Although this is not necessarily the impression of the market. (It means you have an inner feeling that the price of a coin will go up or down)
Remember that millions of people influence the price. You have to determine what is the prevailing thought at the present time, and how confident is everyone? This kind of analysis requires little trial and error in the long run.

Thank you my friend for sharing such useful information with the members of the site
I think that the person should think that basic analysis in the world of digital currencies is a little difficult because it includes a wide and broad spectrum of people while preserving the privacy of people, so I don't think you can collect information and data to analyze the matter

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3 minutes ago, koussai999 said:

Thank you my friend for sharing such useful information with the members of the site
I think that the person should think that basic analysis in the world of digital currencies is a little difficult because it includes a wide and broad spectrum of people while preserving the privacy of people, so I don't think you can collect information and data to analyze the matter

Until you do the basic analysis you have to collect a lot of information, this is not very difficult because there are a lot of sites that provide you with a lot of information. I wrote a topic in which a site resembles the favorites in a lot of important sites.

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You are right my friend, technical analysis, basics analysis, and emotional analysis these are the best analysis before trading because without understand it we can do trade profitable. These three analysis is key points of trading.

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I am agree my friend  and I think  if even we want to be  successful  in the world of trading we should  make deep study  of these three analysis. 

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All this analysis are done and it will be an advantage to those that can used the three analysis at the same time. This will only make us more competent and expert in cryptocurrency

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2 hours ago, Saboor said:

All this analysis are done and it will be an advantage to those that can used the three analysis at the same time. This will only make us more competent and expert in cryptocurrency

Yes, it would be very good if you knew the three types of analysis. But you don't have to master it all. You can master two or two types. Also, you do not have to adhere to these types of analysis. Some people have a different way of working.

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On 3/9/2020 at 10:45 PM, Jone20 said:

I use technical analysis, which is often referred to as the chart or charting, it is a type of market analysis that aims to predict future market behavior based on previous price movement and data on volume data.

by analyzing trends, trial and error. It is simply a function of changing probability to your advantage. very effective for many traders, some find it easy to trade and this is the best way to do it

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I think the best analysis among these 3 types of analyzes in the field of cryptocurrencies is the fundamental analysis certainly because its results are guaranteed by a very large percentage


 

Life is great and enjoy it

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On 5/5/2020 at 1:16 PM, Crypto123 said:

Yes, it would be very good if you knew the three types of analysis. But you don't have to master it all. You can master two or two types. Also, you do not have to adhere to these types of analysis. Some people have a different way of working.i

In cryptocurrency, technical tools are useless and they aren't the best for judging the price of cryptocurrency, the volatility is high and those tools are meaningless, I just wonder how it was possible to predict cryptocurrency

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On 2/7/2020 at 12:23 PM, Sapdrx said:

Beside these 3 types of analysis I hear a lot of traders talking about fundamental analysis. I think this the same as basic analysis because it's about macro ecomics and long term forecasts.

Fundamental analysis cannot be applied on cryptocurrencies. They are not companies that keep books and provide profits and pay taxes. Most of them just have some hypothetical office registered in an island as Seychelles and don't provide any valid financial data or being audited by any financial institution. That's why crypto is called the internet far-west.

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On 5/5/2020 at 6:16 AM, Jeet Narayan said:

You are right my friend, technical analysis, basics analysis, and emotional analysis these are the best analysis before trading because without understand it we can do trade profitable. These three analysis is key points of trading.

Exactly without doing these analysis we can't make good profit. These are prerequisites for doing successful trading and technical analysis is the most important one.

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On 3/10/2020 at 11:25 AM, duncun007 said:

as someone who has been trading for 3 years now i can tell you that no analysis will ever tell you how the market will behave exactly but rather its just speculations that might be right or wrong.

that's absolutely true none can exact can tell you where will the price of bitcoin or any other kind of assets go they can just predict that this is may be happen they are not sure as well because they gives us stoploss

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1 hour ago, Jana Ara said:

The topic was awesome and there is a lot to learn from it.  Strategic intelligence needs to be used in trade and technological advancement, and the more time spent on market prices to trade, the greater the chances of profit.  In order to do business, you need to know the basics and if you know the basics, the steps to succeed in business will go ahead.  You can never be emotional when trading, and as long as you keep yourself strong, the trading strategy will work.

I am glad that the topic liked you, my friend, I have tried to provide as important information as possible for the benefit of all, there are many people interested in trading but they do not have enough experience, of course these tips will not make anyone an expert in trading but he will definitely benefit from it.

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Technical analysis is the main factor of achieving a good or bad investment profit. You have to understand which currencies are the best to invest at a specific time or when an event happening.

 

Basic analysis brings you the information regarding how good a coin is, if it's active or dead coin based on it's 24 hour trading volumes and much on that exchanges provide.

 

Emotional analysis brings you the sentiment and feeling that you are scared to make such investments because everything might fail as you expect thus not able to profit.


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Most of the time i use technical and fundamental analysis, they are helpful but they require knowledge. There are many things which we can learn and use them and they will help to increase our trading profit.


Time is the ultimate weapon!

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Technical analysis is one of the basic analyzes of trading on any platform because we can know the steps that may happen in the future that must be observed. As for emotional analysis, it is different between traders and I am one of the traders who do not use emotion but rather rely on concrete facts


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@Crypto123I am preferring technical analysis to perform any sorts of trading activities. There is another analysis too which is known as sentimental analysis. We should be able to perform different analysis if we are focused to earn benefits from the cryptocurrency tradings. 


 

 

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3 hours ago, Whited35 said:

@Crypto123I am preferring technical analysis to perform any sorts of trading activities. There is another analysis too which is known as sentimental analysis. We should be able to perform different analysis if we are focused to earn benefits from the cryptocurrency tradings. 

In fact, for a professional trader who wants to be assured of profits most of the time, you might need all of the trading analysis techniques or a little bit of them. It is unsafe to say they will guarantee profits 100% but at least to a satisfactory extent.

Another type of analysis I believe it should be included is historical analysis.

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10 hours ago, Whited35 said:

@Crypto123I am preferring technical analysis to perform any sorts of trading activities. There is another analysis too which is known as sentimental analysis. We should be able to perform different analysis if we are focused to earn benefits from the cryptocurrency tradings. 

Yes my friend, I mentioned this emotional analysis, I also prefer technical analysis because it is more accurate and better, of course there are other types and everyone can choose the type that suits him, as well as not necessarily rely on one type in the analysis.

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11 hours ago, Whited35 said:

@Crypto123I am preferring technical analysis to perform any sorts of trading activities. There is another analysis too which is known as sentimental analysis. We should be able to perform different analysis if we are focused to earn benefits from the cryptocurrency tradings. 

As far as I know, sentimental and technical analysis are pretty much the same because a technical analyzer tries to find out how the majority of coin owners have felt in a period of time. All those lines, curves and angles are used to determine the market direction based on sentiment. Now, what do you mean by sentimental analysis? Do you use any particular formula to achieve your goal? In technical analysis, there are lots of patterns to follow to predict the future shape of graphs. Is this the technique you use in so-called sentimental analysis? If there is any major difference between the two, please explain it to us.

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18 minutes ago, Brushless4500KV said:

As far as I know, sentimental and technical analysis are pretty much the same because a technical analyzer tries to find out how the majority of coin owners have felt in a period of time. All those lines, curves and angles are used to determine the market direction based on sentiment. Now, what do you mean by sentimental analysis? Do you use any particular formula to achieve your goal? In technical analysis, there are lots of patterns to follow to predict the future shape of graphs. Is this the technique you use in so-called sentimental analysis? If there is any major difference between the two, please explain it to us.

Thank you, my friend, there is not much difference between them, sometimes the names differ, but the meaning is the same and therefore it is OK if the names differ, also for me it is not important to follow one method, but it is possible to mix between the many types and in the end you can make your own style that suits you.

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The three given types of analysis for trading are helpful especially in the forex market where there are many factors that can influence the price movements like news and patience also is needed never should you trade out of your strategy or indicator signal you follow otherwise you will make unnecessary losses.

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On 6/15/2020 at 12:35 AM, Brushless4500KV said:

Now, what do you mean by sentimental analysis? Do you use any particular formula to achieve your goal? In technical analysis, there are lots of patterns to follow to predict the future shape of graphs. Is this the technique you use in so-called sentimental analysis? If there is any major difference between the two, please explain it to us.

@Brushless4500KV and @Crypto123

Good question.I try my best to elaborate here, constructive criticism is appreciated here if I am wrong.First of all, Sentiment analysis is not my so-called analysis, it is widely discussed and used to understand market sentiment. Well, Technical Analysis and Sentiment analysis can be relatable but actually not the same. Technical analysis involves the observations of market trends by taking the references of some technical details like graphical chart,price history,uniqueness and performance of certain cryptocurrencies etc. These details are used to detect further direction of market but in the case of sentiment analysis, it is utterly based on emotions and opinions of audience. So you ask me a question like what formula you are applying to perform sentiment analysis? I do not think any traders or investors would generate sentiment data so that I can evaluate them however index of feelings can be applicable here in which opinions of random people towards cryptocurrency can be a key factor to generate sentiment index. So let's tell me yourself, suppose there are 500 traders, they are currently performing trades according to current market movements but due to some reasons, more than 90% of them are about to go for bearish trend and you are not aware about their decision and just performing technical analysis, would it really help you to get profits from trading? So here is a key difference.Looking like it is going to be quite long, here are some resources which may help you. Thanks.
Resources for you:-


 


 

 

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I have read a lot of information about these analyzes and for me, I prefer and always choose the basic analysis because it does not contain fewer risks and depends on political and economic analysis. Fortunately, this analysis contains sites that track the events that affect prices permanently while technical analysis depends on graphical analysis And on expectations and predictions, it can be considered a little dangerous

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Trend indicators are in favour of the dollar at 65% to 35% red to green. Oscillators are 100% pointing south, with 20% signalling the pair is oversold. In case of further decline, the pair's levels and support zones are 1.2610-1.2620, 1.2540, 1.2445-1.2465, 1.2405, 1.2300-1.2330. In case of the pair's growth, it will meet resistance at levels 1.2675, 1.2700, 1.2740-1.2760, 1.2800-1.2820, 1.2860-1.2895, 1.2965-1.2995, 1.3040, and 1.3130-1.3140.   As for the events of the upcoming week, all investor attention is focused on the elections on 04 July. The next important event, as mentioned, will be the publication of the fresh inflation report in the United Kingdom on 17 July.   USD/JPY: Another Peak Conquered   Last week, 75% of analysts expecting new currency interventions voted for the USD/JPY pair's retreat south, while the remaining 25% pointed north. The minority, as is often the case with the Japanese currency, turned out to be right: no interventions occurred, and the pair reached another peak – 161.28.   Frankly, there's nothing to comment on here – everything has been discussed dozens and hundreds of times. The problem of the yen's weakening lies in the ultra-loose monetary policy of the Bank of Japan (BoJ). And as long as it does not decisively turn towards tightening, the national currency will continue to lose its positions. Of course, for a while, the Ministry of Finance and the Central Bank can support its exchange rate with currency interventions. But spending billions and billions on something that disappears like ripples on water after a few days – is there any point in that? Can this be called monetary policy?   If inflation falls in major competing countries, in Japan, it rises. According to data published on Friday, 28 June, the Consumer Price Index (CPI) in Tokyo for the year ending in June rose to 2.3% compared to 2.2% for the previous period. The core CPI inflation (excluding volatile food prices) also increased to 2.1% year-on-year, which is higher than both the forecast of 2.0% and the previous value of 1.9%. Another core CPI index for Tokyo (excluding food and energy prices) decreased in June to 1.8% year-on-year compared to the previous value of 2.2%.   Of course, these are not jumps that warrant sounding a loud alarm – all indicators are "hovering" around the target 2.0%. This allows Japanese officials to pause, without changing the vector of their monetary policy, and to limit themselves to verbal "interventions". Thus, Japan's Finance Minister Shunichi Suzuki once again stated that he is "deeply concerned about excessive and unilateral movements in the Forex market" and expressed hope that "trust in the Japanese currency is maintained". Suzuki's colleague, Cabinet Secretary Yoshimasa Hayashi, delivered almost the same speech word for word. However, he added that the authorities "will take appropriate measures regarding excessive currency movements", hinting at another currency intervention.   This hint from Yoshimasa Hayashi scared 60% of experts who voted for the pair's southward movement and yen strengthening, 20% pointed north, and 20% took a neutral position. The opinion of the indicators is unambiguous, as they have never heard of interventions. Therefore, all 100% of trend indicators and oscillators on D1 are green, although a quarter of the latter are in the overbought zone. The nearest support level is around 160.25, followed by 159.20, 158.65, 157.60-157.80, 156.60, 155.45-155.70, 154.50-154.70, 153.60, 153.00, 151.90-152.15, 150.80-151.00. The nearest resistance is in the 160.85 zone, followed by 161.30 and 162.50.   In the upcoming week, the calendar highlights Monday, 01 July. On this day, the Tankan Large Manufacturers Index will be published. No other important macro statistics regarding the state of the Japanese economy are planned for the coming days.   CRYPTOCURRENCIES: Causes and Consequences of "Black Monday" on 24 June     Monday, 24 June, presented investors with a very unpleasant surprise – on this day, bitcoin's price fell below $60,000 for the first time since 03 May, reaching $58,468 at one point. Ethereum, in turn, fell below $3,250. Analysts highlight several reasons for the active sell-offs, noting that they reflect overall instability in global financial markets and uncertainty about monetary and regulatory policies in several leading countries, especially China and the US. However, there are also more specific factors that contributed to the development of the bearish trend.   In mid-June, the German government began selling off a huge amount of bitcoins (about 50,000 BTC) confiscated in January. Panic sentiment sharply intensified after the announcement on 24 June that creditor payments for the bankrupt crypto exchange Mt.Gox would begin in early July. The total amount of funds to be distributed among former clients is 162,100 BTC, roughly $10 billion. Bitcoin responded to this news with an 8% drop. It’s no surprise – such a volume of coins flooding the free market can seriously knock down prices. In the derivatives market, long positions worth $177 million were forcibly liquidated, and the total financing rate for futures contracts turned negative for the first time in June, indicating that sales exceeded purchases.   It is precisely on the expectations of Mt.Gox debt payments that the flagship crypto asset's quotes reached the lowest level in the past eight weeks last Monday. In this situation, two things are encouraging. Firstly, the deadline for repayment falls on 31 October, and it's possible that payments will be made in parts over four months rather than all at once. And secondly, there is hope that not all creditors will rush to convert their bitcoins into fiat, but will hold onto them, hoping for price growth.   In addition to the above, BTC miners exerted some downward pressure on the market. It became known that their coin reserves reached a 14-year low, as they had to sell a significant amount of BTC due to the April halving to cover operational expenses. Recall that the cost of mining bitcoin, according to JPMorgan analysts, is $53,000. Historically, this cost level is a strong support for BTC/USD. However, even in March, JPMorgan did not rule out that after the halving, bitcoin could temporarily fall to $42,000.   In the absence of positive signals, the demand for spot bitcoin ETFs continues to decline, major market participants slow down their activity, and start to take profits. This also pressures the prices. CEO of investment company CryptoQuant Ki Young Ju calculated that over the past two weeks, bitcoin whales and miners set a record by selling coins worth $1.2 billion.   According to 10x Research, all last week, US spot BTC ETFs recorded investor outflows, and on 21 June, net outflow exceeded $105 million. 10x Research believes that bitcoin will now need to find a new price range to stabilize the decline and then find growth catalysts. In the medium term, according to 10x Research analysts, it is not worth expecting BTC to return above $70,000.   Popular analyst Matthew Hyland noted that the combined bitcoin balance on centralized exchanges reached a multi-year low. In theory, this could be seen as a bullish signal, but the crypto market leader is not yet eager to show an upward trend. Naturally, the publication of key US economic data could serve as a vector for further cryptocurrency movements. If the Fed takes its first step in easing its monetary policy in September, it could support risky assets, including bitcoin. According to Cryptology experts, the chances of bitcoin reaching a new all-time high by the end of September are quite high, and what is happening now is a phase of accumulation.   Despite the current decline, many investors remain optimistic, citing the cyclical nature of the crypto market. They also do not forget about the US elections. For example, former Goldman Sachs CEO Raoul Pal predicted significant bitcoin and cryptocurrency market growth in Q4 2024. In an episode of The Wolf Of All Streets podcast, the financier noted that risky assets like bitcoin usually rally against the backdrop of US presidential elections. "The final quarter of an election year is a real 'banana zone' for all assets. It always is," Pal optimistically stated, noting that the "banana zone" for cryptocurrencies in autumn is much more pronounced than, for example, for the Nasdaq index.   Bitcoin was also supported by billionaire Michael Saylor. His company, MicroStrategy, is one of the largest bitcoin holders in the world, with 205,000 BTC on its balance sheet. Despite the negative trend, it increased its reserves by another 11,931 BTC (over $700 million) in the past month alone. Saylor is convinced of the first cryptocurrency's ability to grow to $10 million with support from China and other factors. He believes that in the future, governments, especially China, will fully embrace the first cryptocurrency and integrate it into the state infrastructure. The entrepreneur declared all pre-bitcoin economic instruments obsolete. "Before Satoshi Nakamoto, economics was a pseudoscience. All economists before Satoshi tried to develop economic laws with shells, glass beads, pieces of paper, and credit instruments," the businessman wrote, calling bitcoin a "perfect asset."   In previous reviews, we already wrote that the launch of exchange-traded spot ETFs on Ethereum could give a certain boost to the digital asset market. On 25 June, SEC (US Securities and Exchange Commission) Chairman Gary Gensler noted that the registration process for new ETFs is "going smoothly," and the approval date depends on how quickly applicants submit adjusted S-1 forms. Bloomberg analysts call 02 July the expected approval date for new products. Reuters, citing anonymous sources, reports that a consensus has been reached between fund managers and the SEC in negotiations, and only the "final touches" remain.   Co-founder of venture company Mechanism Capital Andrew Kang stated that after the approval of ETH-ETF, Ethereum's rate could correct by 30%, falling to $2,400. In his opinion, at this stage, the main altcoin attracts much less attention from institutional investors compared to bitcoin. Based on this, ETH-ETF will attract only 15% of funds compared to what BTC-ETF received at the start.   Kang noted that to increase Ethereum's attractiveness among investors, its ecosystem needs to be positioned as a decentralized financial settlement layer, a global computer, or a Web3 application store. At the same time, it will be difficult to sell new ideas for Ethereum's application to funds, as the asset is perceived by investors as an overvalued stock of a large technology company.   Significantly more positively views the future of Ethereum Matt Hougan, CIO of Bitwise, a company managing cryptocurrency funds. In his opinion, the appearance of a long-awaited exchange product is undoubtedly a positive factor, and the net inflow of investments into ETH-ETF over the first 18 months will amount to $15 billion. In his analysis, he relies on the experience of Canada and the EU, where in similar products the inflow ratio for Ethereum and Bitcoin is approximately 1 to 4 (i.e., 25%). In other words, if in the first quarter of work for spot Bitcoin-ETF the total inflow was $26.9 billion, for Ethereum it is expected to be at the level of $6.7 billion. In this case, in three months of work, the leading altcoin could rise to $4,400-5,000.   CEO of SkyBridge Capital Anthony Scaramucci believes that the price of Ethereum could rise even higher, reaching $10,000-12,000. Regarding bitcoin, the entrepreneur allows for its growth to $170,000-250,000. The main driver, in his opinion, will be the further institutional acceptance of cryptocurrency. Scaramucci called the approval of spot exchange ETFs an important regulatory barrier breakthrough for attracting new capital. Thanks to this, in his opinion, the share of digital gold in the portfolios of major players will soon be about 3%.   As of the evening of Friday, 28 June, BTC/USD is trading at $60,190, and ETH/USD is in the $3,390 zone. The total crypto market capitalization is $2.24 trillion ($2.34 trillion a week ago). The bitcoin Fear & Greed Index (Crypto Fear & Greed Index) has dropped from 63 to 47 points over the past 7 days, moving from the Greed zone to the Neutral zone.   In conclusion, here is another observation from Matt Hougan. The CIO of Bitwise presented three reasons why long-term investments in both bitcoin and Ethereum are more advantageous compared to investing only in bitcoin. These are: 1. portfolio diversification 2. the opportunity to earn on very different ecosystems and 3. economic benefit.   Considering the difference in the capitalization levels of bitcoin and Ethereum, Hougan believes that 75% of the capital should be invested in BTC and 25% in ETH. According to calculations, over the period from May 2020 to May 2024, the yield of such an investment portfolio is 3% per annum higher than one that only contains bitcoin. However, Hougan acknowledges that in the shorter term, a portfolio including 100% BTC outperforms a diversified one. Moreover, investing only in bitcoin carries fewer risks due to its higher market capitalization and features such as limited coin issuance and a phased reduction in the inflation rate to zero.   NordFX Analytical Group   Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.   #eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market   https://nordfx.com/ 
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