Fundamental Analysis Vs Technical Analysis Which Is Better
That entirely depends on your trading strategy. Actually, why not use both? Most market analysis methods work best when theyre combined with other methods or indicators. This way, theres a bigger chance of finding more reliable investment opportunities. Combining different trading strategies can also help eliminate biases from your decision-making process.
How To Trade Cryptocurrency On Binance
Using This Knowledge You Can Now Easily Examine How The Amount In Circulation Limits Price
In 2017, the total amount of monies worldwide combined a total of 90.4 trillion and currently, there is only ~250 billion invested in cryptocurrencies. This is good news for those long terms investors, as over time new money should flow into the cryptocurrency market cap as they become more mainstream and accessible. This is bad news for investors who dump money into a half-baked ICO thinking its price will reach Ethereums price within a calendar year.
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What Is A Candlestick Chart Pattern
Technical analysis is largely based on the assumption that previous price movements may indicate future price action. So, how can candlesticks be useful in this context? The idea is to identify candlestick chart patterns and create trade ideas based on them.
Knowing How To Calculate Your Profit And Loss In Crypto Will Make You A Better Trader
The knowledge of calculating your revenue and losses is one of the essential skills that will make you a better trader. Moreover, you can try to curtail your greed in order to make more profits and stop losing money.
Do you want more cryptocurrency trading tips? Then read the exclusive content on CoinJournal to stay updated.
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Cryptocurrency Is Taxed As Capital Gains
In Canada, cryptocurrency is taxed similarly to any other commodity. When cryptocurrencies are exchanged for each other, the challenge is this creates a taxable event and a disposition. Half of the gains are taxed and applied to your taxable income for the year. For example, if I acquired a cryptocurrency for $2,000 and subsequently sold it for $4,000, I would report a $1,000 capital gain , which would be added to my income and taxed at my marginal tax rate. However, this is only applicable if you are a regular trader. If you are a day trader who owns crypto for short periods of time, the CRA may consider your trading to be a business and you will be required to file taxes as such . As a result, your capital gain becomes your business income, which is not subject to the 50 percent rule. Much of the challenge in recent years has been on how to calculate the adjusted cost base when only partial currencies are exchanged or liquidated. The adjusted cost base then becomes challenging, and online platforms help assist and keep tracking the weighted average of the adjusted cost base calculations.
We have been helping clients across the USA and Canada in terms of calculating their adjusted cost base when it comes to cryptocurrencies, and we are gladly welcoming new clients. Please get in touch by booking a consultation.
How To Calculate The Average Price
Let us assume you have placed a buy order of 100,000 Bitcoin contracts at the price of $10,000. Later on you wish to buy 100,000 contracts additionally at the price of $8,000. So the average cost of your 200,000 contracts will be $9000.
Here is the formula to calculate the average price.
Average cost formula:
To calculate the average price you need to know the total contracts / shares quantity and the purchase price of each contract / share.
1. Total number of contracts / shares bought = 1st contract amount + 2nd contract amount + 3rd contract amount +
Example: 100,000 + 100,000 = 200,000 contracts
2. Total amount bought = + + +
Example: + = 1,000,000,000 + 800,000,000 = 1,800,000,000
Average price = Total amount / Total contracts
Example: 1,800,000,000 / 200,000 = $9,000
This tool is not only for cryptocurrency traders but it also applies to stock trading and Forex.
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What Determines Bitcoins Price
Bitcoin is a cryptocurrency developed in 2009 by Satoshi Nakamoto, the name given to the unknown creator of this virtual currency. Transactions are recorded in a blockchain, which shows the transaction history for each unit and proves ownership.
Unlike investing in traditional currencies, Bitcoin is not issued by a central bank or backed by a government. And buying a bitcoin is different from purchasing a stock or bond, because Bitcoin is not a corporation. Consequently, there are no corporate balance sheets or Form 10-Ks to review.
Crypto Is Not Regulated
Many crypto-assets and other digital assets are commonly not considered to be financial products. Because of this, the platforms where you buy and sell crypto may not be regulated by ASIC. This means you may not be protected if the platform fails or is hacked.
When a cryptocurrency fails, investors will most likely lose all the money they put in. In most countries, cryptocurrencies are not recognised as legal tender. You’re only protected to the extent that they fit within existing laws.
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What Is The Relative Strength Index
The RSI indicator applied to a Bitcoin chart.
Whats the idea behind measuring market momentum? Well, if the momentum is increasing while the price is going up, the uptrend may be considered strong. Conversely, if momentum is diminishing in an uptrend, the uptrend may be considered weak. In this case, a reversal may be coming.
Lets see how the traditional interpretation of the RSI works. When the RSI value is under 30, the asset may be considered oversold. In contrast, it may be considered overbought when its above 70.
What Drives The Financial Markets
The price of an asset is simply determined by the balance of supply and demand. In other words, its decided by the buyers and sellers. Where supply meets demand, theres a market. But what else can drive the value of a financial asset?
However, these are just that factors to consider. What really determines the price of an asset in a given moment is simply the balance of supply and demand.
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What Is A Trading Journal And Should I Use One
A trading journal is a documentation of your trading activities. Should you keep one? Probably! You could use a simple Excel spreadsheet, or subscribe to a dedicated service.
Especially when it comes to more active trading, some traders consider keeping a trading journal essential to becoming consistently profitable. After all, if you dont document your trading activities, how will you identify your strengths and weaknesses? Without a trading journal, you wouldnt have a clear idea of your performance.
Bear in mind that biases can play a major part in your trading decisions, and a trading journal can help mitigate some of them. How? Well, you cant argue with the data! Trading performance all comes down to numbers, and if youre not doing something well, that will be reflected in your performance. By meticulously keeping a trading journal, you can also monitor what strategies perform best.
Arbitrage Opportunities And The Kimchi Premium
As there are multiple exchanges across the globe trading digital assets, arbitrage opportunities do exist. However, it is not always so straightforward in crypto markets, as fees and registration requirements vary across exchanges, and financial regulations and anti-money laundering laws can make transferring assets across borders difficult. Decentralized exchanges might allow investors to circumvent this, but do not currently have enough liquidity to handle meaningful transactions. Additionally, it can sometimes take up to 20 minutes or longer to transfer assets between exchanges, making an arbitrage opportunity less than guaranteed in volatile markets. Late last year, the price of Bitcoin was over 40% higher on South Korean cryptocurrency exchanges than on US exchanges. This became known as the Kimchi Premium, and led to many cryptocurrency websites removing Korean exchanges from their reference rate calculations . However, as South Korea had banned foreigners from opening accounts at Korean exchanges, it was almost impossible to take advantage of this premium without traveling to Seoul with a digital wallet full of Bitcoin and trying to sell it on the street.
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Not Too Sure Where To Start
If youre feeling a bit lost and you need even more information when it comes to this topic give Ambcrypto.com a click! They have all the latest news when it comes to the crypto industry. You can find answers to all of your questions while getting informed on all the bits & pieces about technology, altcoins, ethereum, as well as bitcoin! They are the most reliable source for newbies, as well as experts who want to stay updated on all the latest changes.
What Investors Should Know
If youre investing in cryptocurrency, expect volatility to continue. Thats why experts recommend keeping your crypto investments to less than 5% of your total portfolio.
I know these things are super volatile, like some days they can go down 80%, Humphrey Yang, the personal finance expert behind Humphrey Talks, previously told NextAdvisor. But if you believe in the long-term potential of , just dont check on it. Thats the best thing you can do.
Just like you shouldnt let a price drop influence your decision to buy crypto, dont let a sudden price increase alter your long-term investment strategy. Even more importantly, dont start buying more crypto just because the price is rising. Always make sure your financial bases are covered from your retirement accounts to emergency savings before putting any extra cash into a speculative asset like Bitcoin.
Bitcoins latest big jump also isnt anything new. While in the long-term Bitcoins price has generally gone up, we experience a lot of volatility along the way, says Kiana Danial, founder of Invest Diva.
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Opening A Trading Account
The details behind opening an account and trading will be covered in the next lessons. If meanwhile, you want to open an account with a broker feel free to do so. you can get yourself familiar with the terms and conditions, the interface and the overall services of the broker/s you choose. Remember you can start trading and practicing with a demo account.
At Tradimo we have partnered with the two most reputable brokers when it comes to cryptocurrencies. When you open an account from this page and deposit you will get offers exclusively for Tradimo learners.
Go ahead and explore!
Subtract The Selling Price From The Cost Price
This is one of the simplest ways to calculate your profit and loss in crypto. All you have to do is to remove/subtract the amount you sold the crypto for from the amount you bought it for.
Let us cite an example using Bitcoin . Let us assume that Bitcoin is currently trading at $10,000. You bought BTC with $10,000 and sold when it spiked to $15,000.
In this case, you want to remove the cost price from the selling price. That is, you will remove the cost price of $10,000 from the selling price of $15,000. The remainder is your profit.
You can also use the same model to calculate your loss. In this instance, let us say you bought Bitcoin for $10,000. However, it tanked to $8,000 and you were afraid the price would drop even more. So you sold for that price. This means that you lost $2,000.
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Calculating Profits On Crypto Taxes
Profits on cryptocurrencies, like any other income generated, are taxable. Though profits or incomes generated on cryptocurrencies are considered passive income, many government agencies, financial and tax collecting agencies consider them taxable income.
Your tax liability will depend on certain factors such as:
- The area where you reside. Taxes will be calculated based on the tax laws of the country.
- The amount of cryptocurrencies sold.
- The date of sale.
- The fiat value during the time of acquisition or sale.
Taxes will be levied on the profits earned on crypto assets. To calculate the profits, subtract the cost basis from the proceeds. For example, if your cost basis is $5,000 and the proceeds are $10,000, then, your profits are $5,000 . The tax will be calculated on the profits, i.e., $5,000. Remember that only the net profits are taxable and not the entire proceeds or income.
The taxable amount also depends on how long a trader holds the crypto assets. The more you hold the cryptocurrencies, the less your taxes are. So, if you hold cryptocurrencies for longer periods, your taxes will be lower compared to short-term cryptocurrencies. So, it is always profitable to hold crypto assets for the long term. Note, taxes are only levied on profits, and traders do not have to pay any capital gains tax if they incur losses.
Cryptocurrency Prices Are Down Following A Weekend Surge While Governments Step Up Regulatory Efforts
Cryptocurrency Bitcoin Price / How To Calculate The Market Cap And Price Of A Cryptocurrency By E B Kevin Datadriveninvestor. Bitcoin was down monday after the world& aposs largest cryptocurrency rose to the highest levels since may over the weekend. Use this convenient guide to learn more about condition, dates and grading standards before you break up your krugerrand collection. Learn how bitcoin works, how to use it as money, the technology underpinnin.
Before you begin to sell gold krugerrands, you definitely need to know how to price them.
Use this convenient guide to learn more about condition, dates and grading standards before you break up your krugerrand collection.
Given the volatility of bitcoin prices, you may wish to keep an eye on these 10 alternatives.
From how to find stores to when you’ll owe taxes, here is what you need to know.
Registration on or use of this site constitutes acceptance of. Cryptocurrency prices are down following a weekend surge while governments step up regulatory efforts. From how to find stores to when you’ll owe taxes, here is what you need to know.
Many companies featured on money advertise with us. Bitcoin and other digital cryptocurrencies represent the latest evolution of money, and can be used as both an alternative currency and an investment opportunity.
Get an overview of cryptocurrencies.
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Getting A Precise Calculation Of Cryptocurrency
How to calculate crypto profit calculator. How to use the crypt return calculator. Keep the use crypto price radio button selected. Liteccoin tether usd cardano polkadot
How to calculate crypto trading profits. One good option is the binance profit calculator, also called the binance futures calculator. You calculate crypto profit by subtracting the selling price from the cost price of the cryptocurrency.
How to calculate crypto profit when trading for most folks, crypto profits are a measure of how much more fiat money their currencies would exchange for if they were to exchange them. You invested a total of $1.00 for a profit of $46,983.08 . Crypto profit calculator or you can say crypto roi calculator is a simple tool to calculate how much profit you would have made if you had invested in crypto in past.
This helps you measure the return on investment of crypto . Discover a new coin profit and loss calculator that allows you to get the profit or loss value in money of crypto assets using live market data. The main cost factors that a mining calculator uses to calculate crypto mining profit for taxes:
No, you can calculate profit or loss for cryptocurrency or stock market etc. Having some background knowledge on crypto staking before you use the calculator will help you confirm that this is the right route to take with your cryptocurrency. The easiest way to calculate your profit when trading is to use readily available crypto trading calculators.
What Is A Pump And Dump
Typical price pattern of a pump and dump scheme.
Pump and dump schemes are often orchestrated by private pump and dump groups that promise easy returns for joiners . However, what usually happens is that those joiners are taken advantage of by an even smaller group who have already built their positions.
In the legacy markets, people found guilty of facilitating pump and dump schemes are subject to hefty fines.
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Why Crypto Is So Volatile
Crypto is worth what people are willing to pay for it.
This means that the price of crypto-assets can fluctuate at extreme levels based solely on market speculation. Factors that can influence the price of crypto include:
- media focus
- public announcements
- the actions of individuals who hold large amounts of a crypto or who influence the price through social media
Should I Join A Paid Group For Trading
Most likely not. Great free information about trading is abundant out there, so why not learn from that? Its also useful to practice trading on your own, so you can learn from your mistakes and find what works best for you and your trading style.
With that said, some successful traders run high quality paid communities with additional services such as special market data. Just be extra careful who you give your money to, as the majority of paid groups for trading exist to take advantage of beginner traders.
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