CEX.IO company blog | How to understand that "now" is the right moment to buy a crypt?

Knowing when to get a good deal on cryptocurrency is the most important thing in trading and investing.Alexander Yanyuk, financial expert at CEX.IO Broker, gave some tips on how to determine the right moment to buy crypto assets.

In order for a trader or investor to domake a decision regarding opening a transaction, he must conduct a comprehensive analysis. Let us note that, according to our observations, you should not rely only on the readings and signals of technical indicators that have proven themselves well in the stock and foreign exchange markets. The cryptocurrency market, compared to the stock market, has a rather impulsive temperament, so signals on indicators such as RSI, stochastic, MACD on intraday timeframes will constantly contradict each other. However, formations of continuation/reversal of movement on periods from a day to a month and higher can serve as fairly reliable technical signals. These are such figures as wedge, double top/double bottom, flag.

Investors behave the same waytraditional exchanges and on cryptocurrency platforms. One of the old principles of trading is to buy on expectations, sell on news. The behavior of digital assets is very similar to the behavior of stock prices before the closure of the register. An example here is the Bitcoin halving in May, when BTC quotes rose sharply before the event itself, and then collapsed after it.

The same situation is now unfolding for ETH.We are observing the growth of Ethereum, which so far looks quite restrained, since investors cannot assess the likelihood of introducing a new proof-of-stake algorithm this year. However, rumors that the algorithm will be introduced before the end of the year and possibly as early as November are fueling the excitement. Any negative news from the Ethereum network puts ETH/USD quotes at risk. However, this pair's penchant for growth is clear. Once the proof-of-stake algorithm is introduced, Ethereum prices will likely come under severe pressure.

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