What Is a Calendar Crypto? How to Use It to Invest?
The Economic Calendar, also known as the Forex Calendar or FX Calendar. It is a simple trading tool for investors. The economic calendar provides economic news. It also provides valuable information for fundamental analysis of financial markets. Although there is no such thing as a calendar crypto like the FX calendar, those who invest in these assets also do their own fundamental analysis.
The economic calendar serves the purpose of analyzing market movements. These based on macroeconomic events and using them as economic indicators.
The economic calendar additionally shows the release date of the data. Which currencies are likely to be affected, and the magnitude of their impact.
Most indicators have numerical values that people can express as percentages or monetary figures. These values reflect a specific metric’s impact, whether it’s positive or negative.
You can discover most of these calendars on financial websites or via most investment brokers. There they present them in tabular format. They arrange the data chronologically and by date.
Implementing investment strategies becomes challenging without access to this data.
Can a Calendar Crypto Be Formulated?
One indicator to consider are events organized by the cryptocurrency community. On BeInCrypto, readers can view a calendar crypto posted daily.
In this environment, the phrase Do Your Own Research (DYOR) is widely used. Encouraging investors to make informed, non-emotional decisions.
Learning to classify useful information for the assets in your portfolio is the first step every trader should take. Therefore, the importance of the economic calendar in creating fundamental analysis cannot be denied.
Of course, we must not forget that technical analysis and charts are statistical representations of the data provided by fundamental analysis. So is investor sentiment.
Learning to classify information helps maximize the reversal potential of the economic calendar. Also remember that practice, discipline, and respect for wealth management based on data are very important to achieve the expected results.
What Is Fundamental Analysis (FA) And How to Make a Calendar Crypto?
Fundamental analysis is a commonly employed technique in the financial system. But the emergence of cryptocurrencies has added complexity to studying the variables that influence asset values. Investors who choose to enter this market utilize effective tools. Such as the annual return of shares because various factors from different sources influence the value of the crypto assets on offer.
Consequently, when conducting fundamental analysis on a cryptocurrency, it considers not only financial aspects but also public network data. These data points, known as ‘on-chain metrics,’ encompass top hodler addresses. AS well as, transaction values, the number of active addresses. And, in the case of Proof-of-Work (PoW) networks, hash rate.
Similarly, we consider factors such as the project’s ideology. Also, the development team, the supporting community, and additional information like white papers. The purpose of fundamental analysis is to offer an overview of the current state of the market and its potential impact on cryptocurrency growth, stagnation, or eventual decline.
In simple terms, fundamental analysis is a tool that helps investors assess the financial risks linked to allocating capital to a specific asset. This happens because when an asset is undervalued at any given time, it indicates that its price might increase over months or years. Investing in an undervalued market can generate long-term gains. Conversely, if demand-relative to the asset overvalues it, its value will eventually decrease as interest fades, leading to losses for the investor.
What Makes a Good Fundamental Analysis of a Crypto Market?
Fundamental analysis provides the ability to analyze external and internal factors that influence cryptocurrency prices. This is extremely useful, especially since many factors can influence this market. These including buying and selling, hiring, technological developments, and even community involvement.
The collection of different information that affects markets. Such as bitcoin, Ethereum or monero can give investors a clearer picture of the real value of the asset and its behavior in the long term. They can also learn to predict how the value of a currency will react to various events.
However, even though a crypto calendar can assist investors in making medium and long-term decisions. It’s important to note that it represents a limited method. Irregular factors, which cannot be predicted, exert a significant impact on the market.
For example, when the coronavirus pandemic started, it was impossible to predict what effect this news would have on the cryptocurrency market. It drove the price of Bitcoin down for hours. In short, cryptocurrencies are still highly volatile assets, so it’s hard to prepare for all of their moves.
What Factors Should Be Considered to Analyze Information About Cryptocurrencies
It is important to consider all aspects of the market’s network to make a calendar crypto, for example, information about the operation of the blockchain, the team responsible for its development, or information about the operation of cryptocurrencies in the market.
- On-chine metrics: This is information collected in real time when a node is running or a web portal is visited. For example, you can check on-chain metrics on sites like Bitinfocharts, Blockchain.com, Coin Dance, or Ycharts. Number of active nodes, average transaction price, richest addresses, and even commissions paid are some of the charts shared on these sites.
- Number of active addresses: This metric measures the number of active addresses at a given time, that is, the number of users actually using the network at the time of the query.
- Top Hodlers: Helps to show the distribution of cryptocurrencies among all users on the network and the power of some users. It is imperative that investors check sites like Etherscan and Bitinfocharts for lists of “best accounts” or “addresses.”
- Commissions paid: Fees are a very useful metric to determine how users compete to transfer funds and how much they are willing to pay to confirm transactions. The more activities congest the network and the more users need to use their funds, the higher the fees will be.
- Hash rate or amount of staking: Currently, there are several consensus algorithms between cryptocurrency networks, the best known being Proof of Work (PoW), in which Bitcoin works, and Proof of Stake (PoS), in which cryptocurrency works.
The Visible Face of Crypto
In addition to looking at the metrics of the blockchain network, anyone wishing to run a calendar crypto must fully understand the public side of cryptocurrencies. Every cryptoactive has its technical documentation, ideological proposal or image formed by its marketing team.
- Read the white paper: These documents provide information about the operation of the network in which the assets are issued. It also explains what cryptocurrency is for and its usefulness.
- Value and utility proposition: It is essential to know which coins have the widest range of uses and interested communities. Similarly, a cryptocurrency that solves key problems and offers improved propositions is more likely to evolve over time.
- Analysis of cryptocurrency projects: Another important point to know is the age of the project. As long as a product survives and continues to develop over time, it is a mature financial product that achieves stability.
- Community: Investors should check social media, forums, and groups dedicated to discussing and promoting the cryptocurrency in which they intend to invest.
Financial Metrics for a Calendar Crypto
These are all the data related to the financial reality of crypto assets.
In this sense, analysts investigating the crypto calendar immerse themselves in information. Like price, trading volume, market capitalization, and even monetary policy.
- Market capitalization: Calculating it involves multiplying the current supply of assets by the price of each of these assets. This metric helps represent the value of their network.
- Trading volume: Daily trading volume can indicate public interest in a particular asset. High trading volumes can indicate strong demand for cryptocurrencies and, if positive, can influence prices and trigger an uptrend. The internal markets of Binance, Coinbase, and Huobi also show how vibrant the markets are.
- Valuation vs. Price: Portals like CoinMarketCap have rankings where coins are ranked based on current market capitalization or lowest price. In this sense, users can evaluate the behavior of the asset in comparison with other cryptocurrencies.
- The distribution of tokens: it is a factor that greatly affects the prices of the market.Mining releases and introduces certain cryptocurrencies to the market through buying and selling. Nevertheless, the Initial Coin Offering distributes others. Some of these coins are more evenly spread among users, while marginalized groups hold a higher percentage of others.
- Monetary policy and maximum balance: Some crypto assets have a maximum issuance amount and follow a deflationary model that aims to keep the value of the asset increasing over time. On the other hand, there are currencies that are created indefinitely because their monetary purposes are aimed at their use and their priority is not to accumulate them.
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