Currency speculation, despite the opinion of many, is by no means a new type of income that goes beyond the usual. Exchange transactions have always been used in trade, starting from the very beginning of human civilization. Over time, only the types of currencies changed and the methods became more perfect. In the era of the development of information and computing technologies, the sphere has moved to virtual spaces and has become accessible to ordinary citizens. To build a career as a successful trader, it is not at all necessary to own an impressive starting capital. It is enough to have a PC or any modern gadget with access to the web and a not very large amount, which, with a successful combination of circumstances, can be increased almost endlessly.
Trading is one of the most popular and profitable ways to earn Bitcoins. A novice currency speculator should “take into the treasury of knowledge” all the useful tools that will help facilitate the work process. Bitcoinwisdom is a service with which you can track the dynamics of currency growth. The site provides history for all currency pairs over the past 3 years; based on this information, traders have the opportunity to make forecasts for future periods, predicting the behavior of currency pairs.
Basic trading principles:
- A trader purchases cryptocurrency when the exchange rate falls.
- A few days later, when the maximum rate is reached, the trader sells Bitcoins.
At first glance, everything is quite simple. But at the same time, at any moment the cryptocurrency rate can decrease by 30-50%. If the dollar exchange rate fluctuates within a few cents, then Bitcoins today can cost 500 dollars, and tomorrow – 150 or, conversely, 750 dollars. Many beginners, when the rate begins to fall, sell cryptocurrency, fearing enormous financial losses. Experienced traders monitor rates on Bitcoinwisdom com and wait for the right moment.
According to experts, by the end of 2016, maximum at the beginning of 2017, the cost of Bitcoin will reach $1,000. The current rate as of August 16, 2016 averages $565. The fact is that now the volume of cryptocurrency has almost been mined, at which the size of the reward is reduced by 2 times. For a solved block, miners will no longer receive 25 Bitcoins, but only 12.5 coins. The consequence of such a step will be a legitimate increase in the price of cryptocurrency, because the more difficult the extraction, the more expensive the product.
Novice traders will benefit from knowing how to work with Bitcoinwisdom.com. However, you should be prepared for the fact that traders who invest small amounts do not dictate the market situation, but only adapt to it. On the largest exchanges you can find pairs worth up to 1-1.5 million rubles; it is these traders who significantly influence the exchange rate. One person, with about 25 million dollars in hand, can bring down the Bitcoin rate by 50% in about 40 minutes. An inexperienced currency speculator could lose everything at this point.
Wave analysis of BTC
Short-term wave analysis suggests that the BTC rate is now in wave Y of the WXY correctional structure (pink).
If the ratio of waves W and Y is 1:1, then Bitcoin could rise to a maximum of $55,400 (which is close to the resistance area we highlighted above). This move will likely complete the formation of a longer-term wave B (black).
If BTC moves higher, it will confirm that we are not currently dealing with a correction phase, but a longer-term bullish trend.
Source: TradingView
read previous technical analysis on Bitcoin here .
Bitcoinwisdom.com: description
Of course, traders can independently monitor rate changes. To do this, you need to open several exchanges and constantly update them. But why create additional problems for yourself? After studying the description of Bitcoinwisdom.com, you will be able to analyze exchange rates online on the top exchanges.
The main page of the service contains a summary table that displays:
- Current rates of Bitcoin, Litecoin and Altcoins on all major trading exchanges.
- Dynamics of exchange rate changes over 24 hours, over 7 days and 30 days.
As soon as changes occur in the rate on any exchange (for example, growth or fall), the corresponding field on the left is highlighted in blue.
Platform capabilities
- The system in the column on the left, next to the fiat money designation, displays the average exchange rate on all exchanges. When you click, for example, on USD, the window expands and the user of the Bitcoinwisdom.com service can see which specific exchange the changes occurred on.
- All links with names of exchanges are clickable. However, they redirect the user from the main page not to the exchange website, but to a new page where you can track changes in the rate and much more.
For each exchange, the system allows:
- Track current trading charts, consider peaks of cryptocurrency activity.
- Create charts and perform analysis using Fibonacci grids.
- Use an online calculator to obtain information about the profitability of cryptocurrency mining.
The service provides everything for an objective analysis of the current situation and forecasting changes in exchange rates for future periods.
A few words about digital currency trading
The speculative market for alternative currencies is showing incredible growth rates. More and more network users are joining the community of cryptocurrency traders, studying not only the basics of trading, but also the behavioral factors of a particular digital currency. Today there are two directions of trade in this sector:
- Speculation exclusively in cryptocurrencies with sufficient market capitalization (Bitcoin, Ethereum, Litecoin, Monero, Zcash, Dogecoin and others).
- Speculative transactions involving digital currencies and fiduciary monetary units.
The Bitcoinwisdom.com service in this case acts as an analytical tool for predicting the growth or decline of cryptocurrency rates. That is, this resource is more intended to help cryptocurrency traders who do not work with fiduciary title units.
How to analyze Bitcoinwisdom?
It is quite difficult for a beginner to figure out how to analyze Bitcoinwisdom. The service uses the same tools as trading exchanges. For an experienced trader, no difficulties are foreseen. Thanks to an objective and up-to-date assessment of the situation on all exchanges, beginners have the opportunity to:
- Fundamental analysis. It takes into account the current state of the economy, securities performance and stock prices of various companies.
- Technical analysis. It is based on the history of quotes for a specified period of time and on total trading volumes.
Experts conduct the main analysis using the Japanese candlestick chart, which is familiar to traders. The description of Bitcoinwisdom.com matches the principles of trading. The upper and lower shadows of the candle show the maximum and minimum value of the cryptocurrency at the time of opening/closing of trading.
There are several types of candles:
- "Bearish". Displays the high and low of the day, and the current price at the time of opening and closing of trading. Indicates the depreciation rate over a given period of time.
- "Bullish". It also displays the maximum and minimum values, however, it is colored green (blue). Indicates the increase in price over a certain period of time.
Also, when learning how to work with Bitcoinwisdom.com, you should consider the following factors:
- The longer the body of the candle, the more the value of the pair has advanced over the specified time.
- A “bullish” candle body indicates that buyers have an advantage over sellers, while a “bearish” body indicates the opposite process.
- A Doji candlestick, which looks like two lines connected perpendicularly, reflects that the market situation is uncertain. There is no advantage for either buyers or sellers.
Experienced traders form forecasts only based on pair quotes at market close. Drawing conclusions during the day is completely illogical - market mood is changeable, in just 20 minutes you can see a significant change in value.
Bullish breakout
On the daily chart, Bitcoin made a bullish breakout of the descending resistance line that has been present on this timeframe since November 8th. This may indicate the completion of the correction.
In addition, technical indicators are giving bullish signals.
The MACD histogram formed 13 consecutive bars of rising momentum and almost entered the green zone, and the RSI index almost crossed 50 from bottom to top (green icons). These are all considered signs of a bullish trend.
Thus, the daily timeframe shows more pronounced bullish signals compared to the weekly chart.
The next nearest resistance is located between $55,470 and $58,640 (Fibo levels 0.5-0.618 correction).
Source : TradingView
On the 6-hour chart, BTC has been potentially trading inside an ascending parallel channel since December 4th.
At the moment, Bitcoin is located near the midline of this channel.
The resistance line of this channel also coincides with the Fibo correction level at $55,500, which increases the significance of this area.
Source : TradingView
Additional service features
Bitcoinwisdom is an assistant not only for traders, but also for miners. The top panel of the service on the main page displays:
- Current Bitcoin to US dollar rates.
- Section "MARKETS".
- Section "MINING".
- Fields for logging in and registering a new user.
Registration on the site is simple. A lot of information is not required - just an email address, login and password for authorization. Registration on the service does not allow you to log in using the same nickname and password on trading exchanges. In your personal account you can see information about the latest sessions and purchase a “Premium Account” for 0.4 Bitcoin per year. On the website Bitcoinwisdom.com you will be able to see all orders for buying or selling Bitcoins on exchanges.
In the “MARKETS” section, a novice trader can select one of the exchanges and go to it for trading, as well as track the dynamics of the exchange rate within the service.
The "MINING" section contains useful information for miners. Displayed here:
- Statistics on changes in network power and complexity.
- Online calculator for calculating the profitability of mining on a home computer.
It is also displayed here (in the Adjust time section) after how many days the difficulty of mining cryptocurrency will approximately change (and it changes every 2016 blocks). In the description of Bitcoinwisdom.com you can also see how long it takes to produce 1 block (Block Generation Time). Currently, solving 1 block takes a little more than 10 minutes, and 6 blocks are mined in 1 hour.
In the calculator you need to indicate the speed that your home computer can allocate for Bitcoin mining (in the “Hardware Information” section located on the left). As a result, the miner will be able to find out how much he can earn and whether he needs to upgrade his equipment to mine cryptocurrency.
Blockchain Explorers
Blockchain explorers help Bitcoin users identify all transactions that have occurred on the network since the inception of the cryptocurrency's distributed ledger. At first there were very few such observers, but as the Bitcoin network grew, their number increased.
Blockchain.info
Blockchain.info is by far the oldest blockchain browser. Users can enter a Bitcoin address and view its contents, transaction IDs, and get an overview of all transactions on the network. The site contains data about the commissions paid for the transaction, the height of the block in which the transaction is included, the number of confirmations and much more.
In addition, the site contains a huge amount of statistical data and graphs. Users have information about the block, mining, cryptocurrency statistics and various activities on the network at their disposal. The greatest demand is for information about the price of Bitcoin and the average block size, as well as the transaction counter and mempool size.
OXT
Another interesting blockchain explorer is a site called OXT (open exploration tool), which is a research tool for analyzing the blockchain. Similar to other blockchain explorers, OXT can display transactions on the Bitcoin network. Additionally, the site analyzes various behaviors on the Bitcoin blockchain using graphs and trajectory tools. This includes time charts showing commissions, transactions, scripts and more. In addition, OXT includes scatter plots that provide new insights into the behavior of Bitcoin transactions and addresses.
Other popular explorers include Blockcypher, Insight, Blocktrail and Sochain. Each browser displays blockchain data a little differently, but overall the transaction information is the same.
Trading with Bitcoinwisdom
Knowing how to work with Bitcoinwisdom.com, you can make good money. A trader’s income directly depends on the amount invested. Although the volatility of Bitcoin and other cryptocurrencies helps to increase profits significantly, even with minimal investments. During periods of stability, the cryptocurrency rate fluctuates within a few dollars. At such moments you won’t be able to earn much. You can double or even triple your investment during periods of major transactions. At such times, exchange rate fluctuations can reach several hundred dollars.
After the reduction in the block reward, there is an active demand for Bitcoins . Bitcoinwisdom updates quotes every second, novice traders actively monitor changes. By investing a few hundred dollars in the purchase of Bitcoin now, you can begin active trading, gradually increasing the amount.
The Bitcoinwisdom resource is one of the most necessary projects for beginners in the field of trading. The information service makes it possible to learn the basics of trading from the very beginning. A beginner can invest a few dollars, buy satoshi and try trading. Knowing how to analyze Bitcoinwisdom, you can make a rough forecast. However, you should not rely with 100% confidence on the result obtained, because the Bitcoin rate can change in 5-10 minutes while the trader went to the store to buy bread or decided to smoke on the balcony.
