IMPORTANT: Before introducing you to the 2 interesting indicators for cryptocurrency investments we want to talk to you about today, we inform you that this article does not contain any investment advice, nor any advice in terms of trading strategy. We just want to share our experience and knowledge with you. Each person must carry out their own analysis, show critical thinking and correctly measure the risks they incur before investing. Never invest money that you cannot afford to lose.
The 2 indicators that we will present to you are, in our opinion, very important to take into consideration before investing in cryptocurrencies. But first, if you don’t know, where to find the cryptocurrency?
Where to buy cryptocurrencies?
To buy cryptocurrencies in 2022, there are a large number of options such as Bitcoin Profit App, eToroor Binance. Before choosing your platform, we recommend that you read user reviews. Not all platforms are the same and not all investors necessarily need the same trading tools or interfaces.
1time Indicator: Index of fear and greed
The Fear and Greed index tells you the psychological state of investors in the cryptocurrency market. This can be viewed on the alternative website.me. The degree of fear or greed is measured on a scale of 1 to 100. When the indicator hand is in the red zone and the number is low, it means that people are afraid and tend to sell their crypto assets. Conversely, when the indicator hand is in the green area on the right, with a figure close to 100, it means that people are buying more and more crypto assets and therefore the price of the assets tends to rise rather.
The question you should ask yourself is: is it better to buy cryptocurrencies when this index is in the red zone or when it is in the green zone? We suggest that overall it is best to buy cryptocurrencies when the indicator is in the red zone and sell when the indicator is in the green zone.
When the indicator is green, it is because there have been strong price increases. People who are unfamiliar with the cryptocurrency market and don’t have a well thought out investment strategy start buying because they see prices rise and are hungry to make money. This price increase means potential profits for those who bought during the bear marketie when the gauge needle was in red.
2th indicator: the average cost of mining bitcoin
The average cost of mining bitcoin is an important factor that is not always sufficiently taken into consideration, especially by inexperienced investors. Let’s start by defining what it means to mine one or more bitcoins: to mine bitcoins means to create new bitcoins. As you have already heard, there will only be a maximum of 21 million bitcoins in total and of these 21 million, one just over 19 million have already been mined. Over time, the cost of mining bitcoin becomes higher and higher, as the issuance of the remaining 2 million bitcoins will extend to 2140. This is part of the bitcoin base code, programmed by its creator, Satoshi Nakamoto. Every 4 years, it takes place a halvingand mining rewards are halved.
To mine bitcoins, you need to use machines with an operating system, it can beASICS, or other machines, and even theoretically a computer or smartphone. the graph of the average cost of mining of bitcoin, which is the indicator we want to introduce to you, tells you the bitcoin price and the average bitcoin mining cost. From our point of view, it’s a great time to buy a time when bitcoin’s average mining cost intersects with bitcoin’s price. Durant toute l’histoire de Bitcoin, à chaque fois que la ligne du prix de bitcoin a touché la courbe du prix moyen d’extraction de bitcoin, le prix n’est pas descendu beaucoup plus bas et il ya ensuite eu un rebond du price .
We hope these two indicators will be useful to you. Remember that the market cannot always go up, it goes up and down. In the long run, the traditional market has an upward trend and bitcoin has an even more uptrend than the traditional market in recent years. We are currently in a difficult period, an excellent time, from our point of view, to accumulate bitcoin thinking about the long term, over several years.