Without wasting anymore of your time, here are the most popular methods people use when determining the price direction of a coin.
Technical Analysis (TA)
The most popular method is Technical Analysis. Basically glorified chart reading. Within the category of technical analysis, there are a lot of different methods that people use. The most basic method is to find the support, resistance and trend lines. If a coin moves past one of those lines, there is a good chance the trend will continue. For a full tutorial, click here. Currently, we have a technical analysis section on our site, and more specifically we have a RSI and EMA/MACDtutorial as well. (Stay tuned for a full technical analysis course… coming soon!)
There are two main sites that can help you with technical analysis: Coinigy and CryptoCompare. Coinigy is much better, but it’s only free for 30 days and then it’s $15/mo. (which is not bad at all, especially if it’s making you money by then.)
This one is big. Twitter often has an effect on the price of a coin when someone influential tweets something… shocking. For example, at the end of this article, I mentioned the Founder of Litecoin said that China banned all exchanges. Even though no one else could confirm it at the time, it caused Bitcoin to take a pretty substantial hit.
Another example of how you can use twitter to predict a coin’s direction is by following major exchanges. Usually they’ll tweet a few hours/days before they list a coin on their exchange. If the exchange is a big one, it will most likely increase the coins volume pushing it upwards.
Lastly, this one probably has the most effect of the price of a coin. This is great is some conditions and horrible in others. When a coin receives good news, like TenX has a new card issuer, it usually causes a pump in the price of that coin. Shortly after that TenX news was posted, this happened:
On the other hand, when there is bad news, the market usually goes down. For example, when China made all its announcements in September, it caused a major dump in Bitcoin, causing many other Altcoins to fall as well.
Most of the time, a team will have a slack or telegram channel that is open to the community. This is a great place to be if you want to be the first to hear about major developments to the project. Both applications are free to use, so there’s no reason why you shouldn’t join them.
In order to take advantage of these strategies, you need to take action. Make a twitter account if you don’t already have one and follow everyone and everything in the crypto scene. Also make sure you are following crypto news, and the slack/telegram channels of popular coins!
This should be a pretty good start for all those who were uncertain about determining the price of a coin, if you have any questions, ask them in the comment box below and I’ll reply ASAP.