Price Prediction Tools: Cryptocurrency Vs Forex
The cryptocurrency ecosystem is still in its infancy, as speculated by various Forex trading professionals and news. This is the reason why its prices are largely unpredictable. The unpredictability of cryptocurrency prices made it separate and different from it senior- Forex and commodities.
Forex, stock, commodities, etc. are entities that their price movements can be predicted by a lot of price prediction tools which have been put in place by different professionals. These tools were developed through the study of market prices over decades. Today, if anyone will study these tools and apply them appropriately, they can be sure to make profits.
But cryptocurrency hasn’t been around for more than a decade, so it is very hard to make such tools for its price. Few years ago, some Fx trading professionals thought it will bring them good fortune to trade Bitcoin like other commodities. The sad news was that, most of them lost their funds.
Price Prediction for Cryptocurrencies
There are stable coins on the cryptocurrency ecosystem whose prices do not change or are pegged to commodities which does not change in price. Apart from stable coins, other cryptocurrency prices are subject to change based on some factors such as adoption and use by the community, pumps and dumps, news, etc.
Pumps and Dumps
There are people or groups of people who have lots of money, enough to control market prices. They select particular crypto they want to focus on, they first try to ‘dump’ the coin, by placing considerably low sell orders for the coin. They use other exchange accounts to buy these low orders thus scaring holders of the coin. Those who are scared will sell their holdings at very low prices to these people. After some time, they make opposite actions, falsely rising (pumping) the prices consequently attracting buyers’ attention, therefore, selling their holdings at a much higher price. This is a very risky venture as people or groups of people involved can lose parts or all of their funds in no time.
Real Cryptocurrency News
Authentic cryptocurrency news has been one of the most reliable sources for investors to be able to know what to do with their cryptocurrency holdings. Press releases from cryptocurrency projects are seen most time to positively change the prices of their coin.
- Around the fourth quarter in the year 2017, when bitcoin prices knew its peak, China announced that it will no longer support cryptocurrency. Around the time, there was a significant drop in the price of Bitcoin as people from the region sold their holdings for lower prices.
- Bitcoin Cash also affected the cryptocurrency prices, Q4 2018 when it was supposed to have it hard fork which led to a split into BCH SV and BCH ABC. These factions had to pull their mining hardwares from mining BTC and concentrate on mining their faction’s favorite. This led to a big dip in prices of Bitcoin and other cryptocurrencies then as the rivalry went on.
- Stellar Lumens was listed on Coinbase to facilitate the direct exchange of XLM into fiat in November 2018. This information made a surge in the price of XLM over the period of time giving its holders the hope of a bright future for XLM.
There are many other occurrences in the cryptocurrency ecosystem which can only be made known through real and authentic news to help investors take right decisions on their portfolios.
Where to watch
The Currency Analytics (TCA) provides up-to-date and real news for all readers to understand or get informed about happenings on the blockchain ecosystem. TCA is a top cryptocurrency news platform which has been approved by Google news. The platform values the authenticity of news to be broadcasted and has zero tolerance for promoting fake information. In its greatness, TCA reserves spaces for projects to come and present their press releases so they can inform their investors and the public about latest developments in their projects.
Cryptocurrency news facilitate the circulation of important information on the cryptocurrency ecosystem which can help all. It is therefore important for all cryptocurrency enthusiasts and investor alike to continue to watch reliable sources for news for it can mean profit for them.
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