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how to read crypto charts

Decentralised exchanges (DEX) offer the same services but have non-custodial peer-to-peer marketplaces without an intermediatory for facilitating transactions and custody of funds. Instead, trading is executed through what are known as smart contracts. If you are new to cryptocurrency trading, perhaps you’re confused about the jargon. I’ve been in your shoes (many times) and know how demoralising it is when you just cannot seem to get the right side of crypto trading profits. Seamlessly switch between TradingView charts and’s proprietary charts, while also accessing historical data, top NFT collections, and more. Meanwhile, a bearish head and shoulders pattern, like the one shaded in red on the right, may precede a price downtrend.

how to read crypto charts

Other candlestick patterns can be used to confirm the current trajectory of an asset’s price. These are called continuation candlestick patterns, and detecting these patterns can help traders consider whether or not they should stay the course with their investments. A candlestick shows the change in the price of an asset over a period of time. As the basic indicator in a crypto chart, each candlestick represents a specific price movement, including the opening and closing prices, as well as the highest and lowest price points.

Tips for Successful Crypto Trading

A bearish candlestick indicates selling pressure during the time increment. The first thing you should do is to understand the time period represented by each of those candles. Many traders prefer the use of candlestick charts over line charts, as they show a more detailed picture of an asset’s recent and past price movements. With each candlestick showing the opening, closing, high, and low prices, a group of these candlesticks provides more insights into price activity. Candlestick charts provide visual representations of price movements and patterns, helping traders to identify trends, support and resistance levels, and potential entry or exit points.

how to read crypto charts

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It is not intended to offer access to any of such products and services. You may obtain access to such products and services on the App. Before accessing the Exchange, please refer to the following link and ensure that you are not in any geo-restricted jurisdictions. When the line for the faster moving average and the line for the slower moving average come together, that’s called convergence. When the faster moving average line is moving away from the slower one, that’s called divergence.

How to Read Crypto Charts — A Beginner’s Guide

One such arrangement is called ‘head and shoulders’, which is characterised by three peaks or valleys that show up next to each other. In this pattern, the second peak or valley looks like a ‘head’ that overshadows its neighbours on both sides (the ‘shoulders’), giving this pattern its moniker. Some of these indicators are basic pattern assessments of a combination of candles, while others are more sophisticated trendlines and metrics based on recent price movements. Conversely, the bullish evening star shows a possible trend reversal from bearish to bullish. This pattern forms when a sharp drop in price is followed by a consolidation period and then a sharp incline.

  1. Traders often rely on market sentiment, tokenomics, project developments, technical analysis and crypto community discussions to assess their value.
  2. Cryptocurrency trading is a global market operating 24/7, even during holidays and weekends.
  3. A resistance line is drawn through several points where the price peaks, buyers stop buying, and sellers jump in, driving the price down.

Fundamental analysis might seem time-consuming, but it can make a tremendous difference as part of your trading plan. Although this chart software has an excellent range of trading tools, I didn’t get along with it. Charting on the mobile is tricky and caused me to have more losses. CEX is an abbreviation for “Centralised Exchange”, meaning that the exchange facilitates trading activities as a central intermediary.

Market Capitalization

So, if traders think your coin is a bargain at $100 they leap to purchase it when it hits that price and it isn’t likely to go much below there. If they think $150 for your coin is overvalued or even just a nice profit, many will sell at that point and the price won’t go much higher. And I’m sure you can already see many of the ways that they apply to crypto markets.

Similar to ‘head and shoulders’, users can also see ‘wedges’ as patterns in crypto charts that involve a wider point of view. Wedges can be traced in a crypto chart by drawing a line that connects the lower points of price movement over a period of time to another line for the price peaks. When those two lines approach each other from left to right, it is called a wedge. One of the best ways to track the market is using a crypto candlestick chart. The insight this chart provides can be valuable in any market – and crypto is no exception. But with so much data packed in, these charts can be intimidating.

Bearish and Bullish Engulfing Patterns

For example, if there is positive news about crypto, then it’s likely that the crypto prices will rise. However, if there is negative news about crypto, then it’s likely that the crypto prices will fall. This is the amount of crypto traded over time and can be used to identify trends in the crypto markets. If the volume is consistently high, then it’s likely that there is a lot of interest in crypto. However, if the volume is low, then it’s likely that the crypto is not being actively traded. My Favourite charting platform for trading cryptocurrencies is TradingView.

This candlestick has a short body situated near the bottom and a long wick that extends upwards. It indicates that an asset’s price slightly decreased by the end of the trading period, even after reaching higher prices along the way, which explains its red colour. Candlestick patterns are generally categorised into bullish and bearish patterns. A bullish pattern generally indicates future positive price movement for an asset, which may incite a trader to buy in anticipation that the token will increase in value. The inverse happens with a bearish pattern, which may incite some traders to sell before the potential downwards price movement.

It’s followed by a bullish green candle that opens below the previous candle’s low and closes above the midpoint of the first candlestick’s body. This pattern suggests that the bulls might be in charge of the market, hence leading to more drawdown prices. The piercing line pattern is the direct opposite of the dark cloud pattern, despite its unique name. As you could imagine, this pattern signals a possible trend reversal from bearish to bullish. The first candlestick is a bearish candle, followed by a larger bullish candlestick that “engulfs” the previous candle’s body.

It’s important to consider other technical indicators and factors in conjunction with candlestick patterns for comprehensive market analysis. We discussed the different types of technical indicators, so let’s look at how to find trendlines, support and resistance and historical patterns on the charts. By zooming out of individual candlesticks to see the general crypto charts, users can unearth even more patterns.

He used a system of bars to represent the price movement over a given time period, with the length of the bar indicating the price range over that period. Aside from single-candlestick patterns, there are other candlestick combinations that you can use to project possible price movements. For our first example of a bearish candlestick pattern, let’s recall the hammer.

April 13th, 2021

Posted In: Cryptocurrency service

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how to invest in bitcoin and make money

Miners are then paid in Bitcoin for their efforts, which incentivizes the decentralized network to independently verify each transaction. There are mining pools that exist, where investors can pool computational resources and share rewards for mining Bitcoin. Pools charge fees for their users, and the larger the pool is, the smaller the reward will be. You’ll also need to spend thousands on electricity to compete with other miners, and earnings aren’t guaranteed. The Lightning Network is a layer-2 protocol (L2) that runs on top of the Bitcoin blockchain.

The percentage amount will be dictated by your federal tax bracket. Finally, the trading platform should only be chosen after careful consideration. There are numerous options in the space and current crypto regulations remain lax. This calculator uses the current market price of Bitcoin to estimate your rate of return over a set time period. The Securities and Exchange Commission has officially approved a spot Bitcoin ETF. For instance, with both Gemini Earn, Gemini’s interest-earning program, and Cake DeFi, you could lose some or all of your investment if the borrower you’re lending to defaults.

The smallest denomination of each Bitcoin is called a Satoshi, sharing its name with Bitcoin’s creator. Each Satoshi is equivalent to a hundred millionth of one Bitcoin, so owning fractional shares of Bitcoin is quite common. Keep in mind that your crypto rewards might be reduced by transaction fees or a spread added by the provider.

Bitcoin is a form of digital currency that aims to eliminate the need for central authorities such as banks or governments. Instead, Bitcoin uses blockchain technology to support peer-to-peer transactions between users on a decentralized network. Bitcoin’s blockchain operates using a proof-of-work consensus mechanism, which means that miners perform the essential task of validating transactions in order to keep the network secure. New blocks of transactions are added to the ledger once every 10 minutes, and the miner who validates a new block is rewarded 6.25 Bitcoins. Miners also earn transaction fees paid by users who would like to have their transactions validated faster, which can add about $4,000 to the reward for each block.

To get rich trading Bitcoin means you need to have invested a lot and have solid risk tolerance. You can then transfer the funds realized from these games to a safe and trusted crypto wallet. Some examples of the available play-to-earn games include Axie Infinity, The Sandbox, Alien Worlds, Gods Unchained, etc. This guide aims to demonstrate how to profit from Bitcoin in 2024. We outline nine diverse methods to achieve this, encompassing a broad spectrum of strategies.

Proven methods to make money with Bitcoin

As with any investment, holding for a longer period of time means you’ll have to endure ups and downs in pricing without being tempted to buy or sell. If you choose to buy and hold Bitcoin, you’ll want to make sure you’re not over-exposed to any one asset and that you’re not investing money you can’t afford to lose. One guideline is to invest no more than 10% of your portfolio into risky assets like Bitcoin. Bitcoin is a popular type of cryptocurrency that utilizes a large chain of interconnected computers to store and protect your digital assets. Bitcoin is a highly volatile asset that’s prone to large and fast swings in value, which presents an opportunity for large returns but also poses a tremendous risk. It is critical that you learn how to invest in Bitcoin responsibly before making any decisions.

  1. But Bitcoin and crypto are more volatile than other assets, and that makes an already deceptively difficult notion like “buy low and sell high” even more of a challenge.
  2. If you’re using cash in one of these apps, you may wind up using a third party service such as MoonPay to fill your order.
  3. This is a great way to profit from crypto and make money with Bitcoin.
  4. Some crypto apps, such as games, crypto wallets or other online services that use blockchain technology, allow users to buy and sell digital assets directly within their app.

However, it’s important to note that certain risks come with Bitcoin lending. Before engaging in it, you must understand the risks, especially the result of seeing your cryptocurrency’s value drop rapidly. Other risks include smart contracts, network, liquidation, and standard investment risk. The buy-and-HODL method is the easiest and the most friendly way of making money with crypto.

Manage Your Bitcoin Investments

You can make money with Bitcoin through several ways, including buying and holding, actively trading cryptocurrency, staking, and many more. Additionally, mining Bitcoin or participating in affiliate programs are other lucrative avenues. Engaging in Bitcoin futures trading and lending your Bitcoin for interest are also viable strategies for generating income. Bitcoin (or BTC for short) is a digital currency and peer-to-peer payment system created by the pseudonymous software developer Satoshi Nakamoto. However, it’s important to note that Bitcoin isn’t an ordinary investment (like, for instance, stock) — it’s more like an extremely unstable commodity, so don’t buy before you understand the risks.

how to invest in bitcoin and make money

When the assets perform well, investors will realize gains proportionate to the shares they own. When you’ve obtained your wallet, you’ll need to link it to your bank account. Alternatively, your bank account may be linked to your cryptocurrency exchange account.

What about Bitcoin mining?

Like many other assets, Bitcoin can be bought and sold using fiat currencies such as the U.S. dollar. The price will depend on the current market value, which can fluctuate significantly from day to day. Basically, a hot wallet is connected to the internet; a cold wallet is not. But you need a hot wallet to download Bitcoins into a portable cold wallet.

Before delving into these approaches, we will provide a quick overview of Bitcoin. The latest real estate investing content delivered straight to your inbox. Blockchain also employs a “public ledger,” which uses thousands of computers (referred to as “nodes”) to keep track of coins and their owners. If a coin’s data is changed, the nodes will cross-reference their records to verify whether the change is accurate and that the coin’s owner initiated it.

How does Bitcoin work?

Well, short-term trading in BTC is only suitable for experienced traders. Like most temperamental assets, traders need to be extra vigilant. Stop loss and take profit orders are essential, as the market can move in the blink of an eye.

Once converted from Bitcoin to a fiat currency, Bitcoin users can use their cash to purchase anything they want. Note that when it comes to BTC, there is also the term “trading pair,” such as BTC to Tether (USDT) or USD Coin (USDC). In the case of BTC/USDT, Bitcoins can be converted into Tether, a stablecoin whose value is pegged to the U.S. dollar. The length of time you hold Bitcoin before its sale is important, however. If you bought Bitcoin at $5,000, for example, and sold at $6,000 less than a year later, this gain of $1,000 would be taxable as regular income.

Investors have far less data about the behavior of Bitcoin under certain economic conditions, so predicting its price movements can be even more difficult. Additionally, trading cryptocurrency on a regular basis can quickly become a nightmare during tax season. You’ll need to be diligent about keeping records of what you bought and sold and the different price points involved.

And still, these active traders struggle to match the returns that can come from buying and holding, say, low-cost funds that track a broad market index. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Therefore, anyone investing in BLOK is invested in a basket of blockchain technology companies. While BLOK may not give investors access to standalone Bitcoin, it does give them access to the companies which use blockchain and its transformational data-sharing technologies. If you’re only going to purchase small amounts of coin, then you might be fine using a hot wallet with an insured crypto exchange. But if you’re going to be trading large amounts of coin, then a cold wallet would be well worth your investment.

July 17th, 2020

Posted In: Cryptocurrency service

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how to mine for crypto

Crypto mining is usually energy-intensive, and you won’t make much money without cheap power. It’s possible to mine cryptocurrency on your own, but that’s rarely a good approach. Cryptocurrency mining is the way that proof-of-work cryptocurrencies validate transactions and mint new coins. It was the first method used that enabled cryptocurrencies to be decentralized. They function without a central governing body confirming their transactions. So, unless you have the means to invest tremendous amounts of capital, you’ll likely need to join a mining pool to see any results.

how to mine for crypto

They share the profits proportionally to the amount of work each address was able to contribute to the process. As you might expect, mining pools offer advantages and disadvantages. You can mine crypto at home using your computer or a dedicated crypto mining rig. Keep in mind that your electricity bill is likely to increase since crypto mining uses a lot of power. You can also mine from home by cloud mining, which involves renting and operating mining equipment over the internet. Once you have decided what crypto to mine, you’ll need the right mining equipment for the job.

Top Spot Exchanges

However, making a few hundred dollars per month mining cryptocurrency is possible. The benefit to crypto mining is that it has the potential to generate passive income, which isn’t the case for many other types of investments. However, miners still need to follow the crypto market to decide when it makes sense to operate a Bitcoin mining rig and when it makes sense to turn the equipment off. Joining a crypto mining pool is optional, but it’s a good step for many miners. Joining a crypto mining pool can increase your chances of earning a return from mining.

  1. Keep in mind that your electricity bill is likely to increase since crypto mining uses a lot of power.
  2. Getting a secure and reputable wallet (or utilizing an exchange wallet, such as that of Kraken or Binance) is the most important task when you’re starting with cryptocurrency mining.
  3. This mining solution is a method where miners rent an ASIC machine instead of buying one.
  4. Installing an ASIC miner requires a power supply, followed by internet access, access router, IP address, wallet, and mining pool.
  5. So, unless you have the means to invest tremendous amounts of capital, you’ll likely need to join a mining pool to see any results.

By joining a mining pool and pooling your hashing power, you could potentially earn more money than if you were mining alone. You’ll need a crypto wallet to receive your rewards when mining cryptocurrency. Some solid non-custodial crypto wallets on the market include Coinbase and Nexo.

It might also be a good idea to place them in a place that will not keep anyone awake at night. Many cryptos have multiple software options for various operating systems. Doing your own research (DYOR) before selecting one mining software is always wise. But there are different methods and processes for mining and creating cryptocurrency.

There are no licenses required to mine crypto in the US, although miners who want to mine crypto as a business may need to get a business license. Importantly, it takes a lot of computing power to find a block’s hashkey. So, it’s virtually impossible for a malicious actor to spoof a hashkey for a modified block—even if they had a supercomputer.

Method #1 – Cloud Mining

The process of guessing hashkeys is a mathematical way to ensure that every transaction reported in a block actually happened. If you operate crypto mining as a business, you can offset your mining profits with losses and equipment costs. This can help reduce your tax bill, but you’ll still have to pay taxes on any net profits you earn. There are many mining pools available for different cryptocurrencies. Some popular pools include DXPool, Poolin, Braiinspool, ViaBTC, Prohashing, Slush Pool, and F2Pool.

how to mine for crypto

However, GPUs may still be effective on certain networks depending on the cryptocurrency’s difficulty and algorithm. Getting a secure and reputable wallet (or utilizing an exchange wallet, such as that of Kraken or Binance) is the most important task when you’re starting with cryptocurrency mining. One notable cryptocurrency that I wouldn’t recommend mining is Bitcoin. Because it’s so popular and there are so many miners competing to earn rewards, it’s extremely difficult to make a profit with Bitcoin mining. Mining hardware may be the most expensive component of a mining rig setup. You’ll need a powerful computer, perhaps even one specifically designed for mining.

She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest. The information on this website is for educational purposes only, and investing carries risks. Always do your research before investing, and be prepared for potential losses. According to some estimates, Bitcoin mining alone uses 127 terawatt-hours per year, which is just slightly less than the entire country of Norway. ASICs are very well known and treasured because they produce insane amounts of cryptocurrency when compared to its competitors’ GPU and CPU.


Despite its potential rewards, mining may prove challenging and yield inconsistent profits due to fluctuating crypto prices and energy costs. To maximize success, it’s important to properly configure the mining devices and invest additional funds as necessary in order to keep running an operation smoothly. Furthermore, GPU miners can handle multiple operations in parallel, and some utilize multi-GPU mining rigs for increased output power or hash rates and payouts. Today, you may use GPU mining for mining coins such as Ravencoin (RVN) or Grin (GRIN). does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor. Generally speaking, GPU and cloud mining seems to be the two big options that people love. CPU mining is slow and tedious, while ASIC mining could get very unpredictable, especially as of late. It is usually expected that you’ll break even at around the half-a-year – one year mark, and then profit from that point onwards. No one can know for sure, though, because the prices of cryptocurrencies are very volatile and their prices tend to sway by quite a bit.

From that point, miners are more than $10,000, with the Bitcoin Miner S21 Hyd. You’ll need a wallet for your cryptocurrency to store the keys for any tokens or coins your mining efforts yield. Wallets have a unique address, allowing you to send and receive tokens securely. There are many types of wallets, and it’s best to use a “cold storage” wallet to store your keys offline for security. Mining is the process by which new cryptocurrency tokens or coins are generated. However, the comparison does hold; virtual currency miners use computers to solve cryptographic problems and receive a reward in the form of cryptocurrency.

Additionally, mining on the phone can quickly drain the battery and cause the device to overheat, potentially damaging it. Therefore, if you’re looking for how to mine cryptocurrency on your phone, know that it is possible. Mining is an integral component of the cryptocurrency ecosystem, helping to protect and bolster its integrity. It also gives individuals a way to participate in the market and potentially earn profits by contributing computing power to it.

In the context of crypto, an ASIC miner is a specialized device that employs ASICs to exclusively mine proof-of-work (PoW) digital currencies. These ASIC devices are specifically designed to provide superior performance on large-scale mining operations. Due to the increasing demand for computational power, CPU mining was unable to keep up. That’s why graphics processing units (GPUs) have also been used, alongside CPUs, for mining cryptocurrencies. ASIC miners are generally the best option for cryptocurrency mining as they are specifically designed for this task.

Learn what is cryptocurrency mining & discover crypto mining options with how to mine cryptocurrency guide. The right type of mining depends on the type of cryptocurrency and how much you can afford to invest. In most cases, your best bet is to go with either ASIC mining or GPU mining and to join a mining pool. As of Dec. 3, 2023, the RTX 4090 is the top-of-the-line consumer graphics card. It costs about $2,600 and, depending on the mining algorithm, can hash about 120 mega hashes per second (MH/s)—significantly less than one of the Bitcoin ASIC miners.

Can I mine cryptocurrency on my laptop?

It takes a lot of work and investment to make crypto mining worthwhile. Importantly, the process of guessing hashkeys for a block is a competition. Other users don’t receive crypto if they guessed hashes but didn’t guess correctly. Crypto mining is one of the main ways in which investors can acquire cryptocurrencies like Bitcoin. Mining cryptocurrency is not just a fun and exciting way to be a part of the crypto world; it’s also a crucial aspect of keeping the blockchain secure and functional.

June 19th, 2020

Posted In: Cryptocurrency service

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how to buy a gold coin

And keep in mind that you may be on the hook for delivery fees—plus insurance—to assure the safe transport of your bullion. On the obverse of all Queen’s Beast Gold Coins to date is the right-profile portrait of Queen Elizabeth II. This is the fifth-generation design for British coinage designed in 2015 by Jody Clark and it debuted on British bullion coins in 2016. When you have chosen the type of account that suits your needs best, you will need to provide us with the relevant information.

  1. Its affordability among gold coins makes it a recommended investment option for both new and experienced buyers.
  2. On the other hand, the Royal Australian Mint was established after the 1965 Currency Act.
  3. Each account owner or operator will need to provide us with a copy of their passport or driver’s license to verify their identity.
  4. For instance, layaway payment plans may sound convenient at a glance, but you may be required to pay interest on your purchase until the full price is paid in full.
  5. On the other hand, there are some potential drawbacks when sourcing your bullion from a local coin dealer.

Working with an online dealer that is willing to buy back gold coins that you purchase today is a major benefit. This means that you can effortlessly cash in on your investment when the time comes. Although Precious Metals can be part of a balanced portfolio, APMEX understands this investment isn’t for everyone. It may not suit those who prefer to see their wealth confined purely to numbers on a page.

Are You Ready to Invest?

This can be a recent bank statement, utility bill or any official government correspondence, such as a tax document. All proof of residency documents must be dated within the last six months to make sure they’re up to date. We believe in rewarding our customers for their loyalty and giving something back whenever we can. Although the U.S. is no longer tied to the gold standard (and hasn’t been since the early 1970s), that doesn’t mean that gold has lost its value. The use of gold in jewelry and collecting makes it a universal medium of exchange even in the contemporary era. Presumably, the initial reason gold was ascribed value had to do with its lustrous quality and scarcity.

how to buy a gold coin

As we know, gold coins have been in circulation for millennia, proving that they’re not only synonymous with wealth and luxury, but they also truly stand the test of time. They offer an excellent way to safeguard your assets because of this long-term strength of value. There couldn’t be a better time to invest so here, we’re going to show you how to buy gold coins. The U.S. Mint is the sole mint in the country and holds the title of the United States’ official covering mint.

Our website makes the process of purchasing gold effortless, allowing you to search for your desired coin based on series or mint. The value of gold coins varies in accordance with the gold spot price, and we cater to a wide range of budgets. Whether you’re a seasoned investor or just starting out, we have the gold bullion coins to suit your needs, sourced from esteemed mints across the world. Gold coins are struck with a minimum purity level of .999 gold, while coins such as the Canadian Gold Maple Leaf and Australian Gold Kangaroo are issued with .9999 pure gold. Finally, gold bullion coins are often available in weights beyond simply 1 oz gold.

Shop Gold Prices and Silver Prices

Making sure there are plenty of options available allows you to change how you invest your money in the future. When opting to source your gold bullion from an online gold dealer, you can conveniently have your gold delivered to your home or storage facility. To make things even easier, GoldCore clients can also avail themselves of our high-security storage solutions. We act as professional custodians for our clients by storing all gold bullion securely in our facilities across the world. The Austrian Mint, also known as Munze Österreich, has gained a reputation for its expertise in coin production and Precious Metals processing with over 800 years of experience.