5 Tips to Know If a Crypto Is Going up
Maybe you’ve heard of the famous saying, “sell in May and go away”. It refers to the fact that historically, September is a weak month for the stock market. And in crypto, how to know if a crypto is going up are no different.
Even a seasoned crypto trader can find it challenging to know which projects are worth keeping an eye on this year. After all, there are thousands of them out there!
Whether you’re looking to invest or just keep tabs on what’s happening in this space, here are 5 tips you should know if a crypto is going up:
How to Know if A Crypto Is Going Up?
Know the fundamentals of a coin/project
The first and most important, step is to know the fundamentals of a coin/project. The fundamentals are the things that matter most when determining the investment potential of a coin.
These include: – The problem the coin is trying to solve—The team behind the coin, and what experience they have—The team’s ability to execute (i.e., meet their milestones)—The coin’s use cases—The coin’s supply and demand—The coin’s consensus type—The coin’s tokenomics – General market conditions—And many more
Watch social media and news outlets
Nothing can tell you more about the sentiment of a coin than following the social media and news outlets that pertain to the coin. Keep tabs on the following, and you’ll know if a crypto is going up. – Telegram—The number one source for communication in crypto, and an essential barometer for sentiment. – Twitter—See if the team behind the coin is active.
Are they responsive and posting relevant content? Are there any influencers posting about the coin? These are good signs. — Medium/Blog Post—Look for well-written blog posts that give you insights into the project and the team behind it. – Reddit—This is a great source for the sentiment of the community and what they think about the coin.
Watch CoinMarketCap for price changes
Keep a close eye on CoinMarketCap. If a crypto is going up, you’ll likely see its price increase on this website.
Take a look at the 24-hour percentage change and the 7-day change. If you see a big increase in these numbers, chances are the crypto is going up. — It’s essential to note that if a crypto has been in the news, there’s a good chance its price will increase, regardless of whether the news is positive or negative. — You can also use a tool like Coincodecalculator.com to get the estimated percentage change of a crypto in the past few days. — It might sound a bit redundant, but it’s always good to have a second source of information.
Check out Reddit
Crypto enthusiasts love Reddit, and it’s a great place to keep tabs on what’s happening in the crypto world. — If you’re looking for a specific coin, type its name in the search box on the upper right-hand side, and you’ll get a list of relevant posts. – You can also use the “top” filter on the right-hand side to see the most popular posts for the day, week, month, or all time. — Be sure to check out the “Today’s WTF”, “Cryptocurrency”, and “CryptoCurrency” subreddits.
Look at how much money is going in and out
This is another good sign that a crypto is going up. Crypto exchanges are like water parks with fountains that keep running and flowing.
When more money goes in than goes out, you know a crypto is going up. — You can monitor this with websites like Coinmetrics.io and Cryptoecrawfish.com.
These websites track the inflows and outflows of the top crypto exchanges. — Knowing which exchanges are the most popular is a good indication of which coins have the most liquidity. — It’s important to look at the exchange volume on a specific trading day, not on the average volume. — If the volume on a day is high, but the average volume is low, it’s a good indication that a lot of money has just come into that exchange and that crypto. — A high volume on a day usually means that a crypto is going up.
The crypto space is full of uncertainty, volatility, and risk. However, it also comes with ample opportunity for those who know how to navigate it. With the right knowledge and tools at your disposal, you’ll be able to see whether a crypto is going up and be able to make informed investment decisions.