In this blog, I will be going through a four step process to predict cryptocurrency prices:
Brief, can you predict Cryptocurrency?
In the case of crypto-assets, it is definitely possible to predict price movements in cryptocurrencies but no single model is going to be effective across all market conditions. Always assume that, eventually, your models are going to fail and look for alternative.
In any manner, is 2020 a good year for Cryptocurrency? According to many crypto enthusiasts, 2020 is going to be the best year to invest in cryptocurrencies. When it comes to deciding what crypto to invest in, the choice can be somewhat overwhelming as there are thousands of crypto coins available in the marketplace.
That, what makes Cryptocurrency go up or down?
This is a basic economic principle. If a cryptocurrency has a high token supply with little demand from traders and users, then the cryptocurrency's value will drop. Conversely, if the supply of a particular cryptocurrency is limited and the demand is high, then the value of the coin will increase.
How do you analyze Cryptocurrency?
Crypto fundamental analysis involves taking a deep dive into the available information about a financial asset. For instance, you might look at its use cases, the amount of people using it, or the team behind the project. Your goal is to reach a conclusion on whether the asset is overvalued or undervalued.