It’s Invest Diva’s Kiana Danial https://www.investdiva.com/ with News BTC and here is your cryptocurrency update. In my previous educational piece, I talked about how to utilize Fundamental analysis when identifying top-performing cryptocurrencies. Fundamental analysis is the first point of Invest Diva’s Diamond Analysis (IDDA). The third point of the IDDA is market sentiment analysis. When it comes to cryptocurrency investing, market sentiment analysis is very different than analyzing other financial instruments like stocks and forex. As I cover in my book, Cryptocurrency Investing for Dummies, there are 6 key sentimental elements you need to watch out for when conducting market sentiment analysis. #1 Get to know the community. While the company behind the cryptocurrency can play a role in the direction the cryptocurrency goes, the network who participates in their blockchain technology is an important key to its success. Many cryptocurrencies directly depend on the participation of their community, like miners and developers as I explain in Chapter 7 of my book. Most of the crypto communities have their own forums on places like:
These forums are great because they not only give you a sense of what type of people are involved in the cryptocurrency but also you can find out more about the cryptocurrency itself. The second key sentimental element is #2 Exchanges who carry the crypto. As I discuss in Chapter 4 of my book, cryptocurrency exchanges are a big part of the whole ecosystem. While you want to make sure that your cryptocurrency exchange carries your cryptos of choice, it is also a good idea to choose cryptos that are listed on many different exchanges. Other key sentimental elements include #3 volume, #4 Coin Market Capitalization, #5 Circulating Supply and #6 Total Supply. Check out InvestDiva.com and flip through Cryptocurrency Investing for Dummies to explore more about each element. If you liked this video, subscribe, and let me know what crypto topic you want me to cover next in the comments. Thanks for watching, invest responsibly, and I’ll see you with more updates tomorrow.
Cryptocurrency Market Sentiment Analysis Point For Investment Strategy Development