Crypto market analysis

Cryptocurrency has been around for a while and there are many papers and articles on the basics of cryptocurrency. Cryptocurrency has not only flourished, but also opened a new and reliable opportunity for investors. The crypto market is still young, but mature enough to input enough data to analyze and predict trends. ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​a most volatile market and a huge investment gamble, it has now become predictable up to a point, and Bitcoin futures are proof of that. Many stock market concepts are now being applied to the crypto market with some tweaks and changes. This gives us another proof that every day many people are switching to the cryptocurrency market and currently there are more than 500 million investors. Although the total market capitalization of the crypto market is $286.14 billion, which is roughly 1/65 of the stock market at the time of writing, the potential of the market is very high given the success despite its age and availability already established financial markets. The reason for this is none other than the fact that people have started believing in the technology and products that support crypto. It also means that crypto technology has proven itself and so much so that companies have agreed to place their assets in the form of crypto coins or tokens. The concept of cryptocurrency became successful with the success of Bitcoin. 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 mean that Bitcoin has failed, in fact, the market cap of Bitcoin has increased, rather it indicates that the crypto market as a whole has expanded.

These facts are enough to prove the success of cryptocurrencies and their market. And in fact, investing in the crypto market is now considered safe to the extent that some invest in their retirement plan. So, next we need crypto market analysis tools. There are many such tools that allow you to analyze this market in the same way as the stock market, providing similar indicators. Including coin market cap, coin stalker, crypto and investments. Although these metrics are simple, they provide important information about the crypto in question. For example, a high market cap indicates a strong project, a high 24-hour volume indicates high demand, and a circulating supply indicates the total number of coins of that crypto in circulation. Another important indicator is the volatility of the crypto. Volatility is how much the value of a crypto fluctuates. The crypto market is considered to be very volatile, cashing in at a moment’s notice can bring you big profits or make you pull your hair out. So what we are looking for is a crypto that will be stable enough to give us time to make a calculated decision. Currencies such as Bitcoin, Ethereum and Ethereum-classic (not specific) are considered stable. Being stable, they must be strong enough not to become invalid or simply cease to exist in the market. These features make crypto reliable, and the most reliable cryptocurrencies are used as a form of liquidity.

When it comes to the crypto market, volatility goes hand in hand, but so does its most important property – decentralization. The crypto market is decentralized, which means that a drop in the price of one crypto does not necessarily mean a downward trend in every other crypto. This gives us an opportunity in the form of so-called mutual funds. This is the concept of managing a portfolio of cryptocurrencies in which you invest. The idea is to spread your investment across multiple cryptocurrencies to reduce your risk if any crypto starts to decline

Similar to this concept is the concept of indices in the crypto market. Indexes provide a standard reference point for the market as a whole. The idea is to pick the best currencies on the market and spread your investment between them. These selected cryptocurrencies change as the index is dynamic and only takes into account the best currencies. For example, if currency “X” falls to the 11th position in the crypto market, the index that takes into account the top 10 currencies will now not consider currency “X” and will start to consider currency “Y” that took its place. Some providers like cci30 and crypto20 have tokenized these Crypto indices. While it may seem like a good idea to some, others are against it due to the fact that there are some prerequisites for investing in these tokens, such as the minimum investment amount required. While others like cryptoz provide the methodology and value of the index as well as the currency components so that the investor is free to invest the amount he/she wants and not invest in the crypto included in the index. In this way, indices give you the ability to further smooth out volatility and reduce risk.


At first glance, the crypto market may look risky and many may still be skeptical about its validity, but the maturity that this market has achieved in its short period of existence is amazing and is proof enough of its validity. The biggest concern of investors is volatility, for which there was a solution in the form of indices.