Crypto market analysis

Cryptocurrency has been around for a while and there are numerous papers and articles on the basics of cryptocurrency. Cryptocurrency is not only booming but also opening up as a new and reliable opportunity for investors. The crypto market is still young, but mature enough to pour enough data to analyze and predict trends. Although it is considered to be the most volatile market and a huge gamble as an investment, it has now become predictable up to a point and Bitcoin futures are proof of that. Many stock market concepts have already been applied to the crypto market with some tweaks and changes. This gives us another proof that many people are adopting the cryptocurrency market every day and currently more than 500 million investors are present in it. Although the total market capitalization of the crypto market is $286.14 billion, which is approximately 1/65 of the stock market at the time of writing, the market potential is very high, given the success despite its age and the presence of already established financial markets . The reason for this is none other than the fact that people have started believing in the technology and products supporting crypto. It also means that crypto technology has proven itself so much that companies have agreed to put their assets in the form of crypto coins or tokens. The concept of cryptocurrency became successful with the success of Bitcoin. Bitcoin, which was once the only cryptocurrency, now contributes only 37.6% to the total cryptocurrency market. The reason is the emergence of new cryptocurrencies and the success of the projects that support them. This does not mean that Bitcoin has failed, in fact the market capitalization of Bitcoin has increased, rather what it shows is 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 considered safe now, to the extent that some are investing as their retirement plan. Therefore, what we need are crypto market analysis tools. There are many such tools that allow you to analyze this market in a similar way to the stock market, providing similar indicators. Including coin market cap, coin chasing, crypto and investing. Although these indicators are simple, they provide important information about the crypto in question. For example, a high market cap indicates a strong project, high 24-hour volume indicates high demand, and circulating supply indicates the total amount of coins of that crypto in circulation. Another important indicator is crypto volatility. Volatility is how much the price of a crypto fluctuates. The crypto market is considered highly volatile, cashing out right now can bring a big profit or make you tear your hair out. Therefore, what we are looking for is a crypto that is stable enough to give us time to make a calculated decision. Currencies like Bitcoin, Ethereum and Ethereum-classic (not specifically) are considered stable. To be stable, they must be strong enough not to become invalid or simply cease to exist in the market. These characteristics make cryptocurrency reliable and the most reliable cryptocurrencies are used as a form of liquidity.

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

Similar to this concept is the concept of indices in the crypto market. Indices provide a standard reference point for the market as a whole. The idea is to choose the best currencies on the market and spread the investment between them. These selected cryptocurrencies change if the index is dynamic in nature and only considers the best currencies. For example, if currency “X” falls to the 11th position in the crypto market, the index that considers the top 10 currencies will no longer consider currency “X” but rather will start looking at currency “Y” which has taken her place. Some providers like cci30 and crypto20 have tokenized these crypto indices. While this may seem like a good idea to some, others are against it due to the fact that there are some pre-conditions for investing in these tokens, such as a minimum investment amount being required. While others, like cryptoz, provide the methodology and value of the index, along with the currency components, so that the investor is free to invest the amount they want and choose not to invest in crypto that is otherwise included in an index. In this way, indices give you a choice to further smooth out volatility and reduce the associated risk.


The crypto market may seem risky at first sight and many may still be skeptical about its authenticity, but the maturity that this market has achieved within the short span of its existence is incredible and is proof enough of its authenticity. The biggest concern of investors is volatility, for which there was a solution in the form of indices.