Crypto market analysis

Cryptocurrency has been around for quite some time now and there are multiple papers and articles on the basics of cryptocurrency. Not only has cryptocurrency improved but it has also opened up new and trusted opportunities for investors. The crypto market is still young but mature enough to pour enough data for analysis and to predict trends. Although it is considered to be the most volatile market and a huge gamble as an investment, it has now become predictable at a certain point and evidence of Bitcoin futures. Many concepts of the stock market have now been applied to the crypto market with some changes and modifications. This gives us another proof that many people are taking over the cryptocurrency market every day and now there are over 500 million investors in it. Although the total market cap of the crypto market is $ 286.14 billion which is about 1 / 65th of the stock market at the time of writing, its market potential is very high considering its success despite its age and presence of already established financial markets. The reason behind this is nothing but the fact that people have started believing in technology and products that support crypto. This means that crypto technology has proven itself and so much so that companies have agreed to keep their assets in the form of crypto coins or tokens. With the success of Bitcoin came the idea of ​​cryptocurrency. Bitcoin, once the only cryptocurrency, now accounts for only 37.6% of the total cryptocurrency market. The reason is the emergence of new cryptocurrencies and the success of projects that support them. This does not indicate that Bitcoin has failed, in fact the market capitalization of Bitcoin has increased, but rather it does indicate that the crypto market has expanded as a whole.

This information is sufficient to prove the success of cryptocurrencies and their markets. And in reality investing in the crypto market is now considered safe, to the extent that some people invest for their retirement plans. So we need the next tools for analyzing the crypto market. There are many such tools that enable you to analyze this market in a way similar to the stock market delivery metrics. Including Coin Market Cap, Coin Stalker, Cryptoz and Investment. Even thought that these metrics provide important information about simple, considered crypto. For example, a high market cap indicates a strong project, a high 24-hour volume indicates high demand, and circulation supply indicates the total amount of cryptocurrency in circulation. Another important metric is the instability of a crypto. Instability is how much the price of a crypto fluctuates. The crypto market is considered to be extremely volatile, cashing out in an instant can lead to huge profits or pull your hair. Thus what we are looking for is a crypto that is stable enough to give us time to make a calculated decision. Currencies such as Bitcoin, Etherium and Etherium-Classic (not specifically) are considered stable. Once they are stable, they need to be strong enough so that they do not become illegal or cease to exist in the market. These features make a crypto reliable and most reliable cryptocurrencies are used as a form of liquidity.

As far as the crypto market is concerned, volatility comes in handy, but so does its most important asset i.e. decentralization. The crypto market is decentralized, which means that a drop in the price of a crypto does not mean a lower trend of any other crypto. This gives us an opportunity to be called a mutual fund. This is the idea of ​​managing a portfolio of cryptocurrencies that you invest in The idea is to spread your investments across multiple cryptocurrencies to reduce the risk involved when a crypto bear starts operating.

The concept of crypto market index is similar to this concept. The indicators provide an ideal point for the market as a whole. The idea is to select the top currencies in the market and distribute investments among them This selected cryptocurrency changes if the indicator is dynamic in nature and only considers the top currency. For example, if a currency ‘X’ drops to 11th place in the crypto market, the index considering the top 10 currencies will no longer consider the currency ‘X’, but will begin to consider the currency ‘Y’ which has replaced it. Some providers such as cci30 and crypto20 have tokenized these crypto indicators. While this may seem like a good idea to some, others oppose it because there are certain pre-requisites for investing in these tokens, such as the minimum amount of investment required. While others provide methods and values ​​of an index with elements of such cryptocurrency so that an investor can invest his desired amount and otherwise choose not to invest in a crypto included in an index. Thus, indicators give you a choice to smooth out volatility and reduce the risks involved.


The crypto market may seem risky at first glance and many may still be skeptical of its authenticity, but the maturity that this market has achieved in the short span of its existence is surprising and there is ample evidence for its authenticity. The biggest concern of investors is instability, for which there was a solution in the form of indicators.