Crypto Market Analysis

Cryptocurrency has been around for a long time and there are many papers and articles on the basics of Cryptocurrency. Not only has Cryptocurrency evolved but has opened up as a new and reliable opportunity for investors. The crypto market is still young but mature enough to pour in a considerable amount of data for analyzing and predicting trends. Although it is considered the most volatile market and a big gamble as an investment, it has become predictable to a point and the future of Bitcoin is a proof of this. Many stock market concepts are now being 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 there are more than 500 million investors in it. Although the total market cap of the crypto market is $286.14 Billion which is roughly 1/65th of the stock market at the time of writing, the potential of the market is very high considering its success despite its age and the presence of already established financial markets. The reason behind this is nothing but the fact that people are starting to believe in the technology and the products behind a crypto. It also means that the crypto technology has proven itself and 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 used to be the only Cryptocurrency, now contributes only 37.6% of the total Cryptocurrency market. The reason is, the emergence of new Cryptocurrencies and the success of the projects that support them. This does not show that Bitcoin has failed, in fact the market capitalization of Bitcoin has increased, rather what it shows is that the crypto market has expanded in general.

These facts are enough to prove the success of Cryptocurrencies and their market. And in fact investing in the Crypto market is considered safe today, to the extent that some are investing for their retirement plan. So what we need next are tools for the analysis of the crypto market. There are many such tools that enable you to analyze this market in a manner similar to the stock market that provides similar metrics. Including coin market cap, coin stalker, cryptoz and investment. Although these metrics are thought to be simple, they provide important information about the crypto under consideration. For example, a high market cap indicates a stable project, a high 24-hour volume indicates high demand and circulating supply indicates the total value of crypto coins. in circulation. Another important metric is the volatility of a crypto. Volatility is how much the price of a crypto fluctuates. The Crypto market is considered very volatile, cashing out at once can bring huge profits or you can pull your hair out. So what we are looking for is a crypto that is stable enough to give us time to make a calculated decision. Currencies such as Bitcoin, Ethereum and Ethereum-classic (not specified) are considered stable. Along with being strong, they must be strong enough, so that they don’t become invalid or just stop on the market. These features make a crypto reliable, and the most reliable Cryptocurrencies are used as a form of liquidity.

As far as the crypto market is concerned, volatility goes hand in hand, but so is the most important property i.e. Decentralization. The Crypto market is decentralized, what this means is that a fall in the price of one crypto does not necessarily mean a downward trend in any other crypto. Thus giving us an opportunity in the form of the so-called mutual funds. This is a Concept of managing a portfolio of crypto currencies that you invest in. The Idea is to spread your investments over several Cryptocurrencies to reduce the risk involved if any crypto starts a bear run

Similar to this concept is the concept of Indices in the crypto market. Indices provide a basic reference point for the entire market. The Idea is to choose the main currencies in the market and distribute the investment among them. These selected crypto currencies will change if the index is dynamic in nature and only consider the main currencies. For example if a currency ‘X’ falls to the 11th position in the crypto market, the index that considers the top 10 currencies will no longer consider the currency ‘X’, instead it will start considering the currency ‘ Y’ who replaced it. Other providers such as cci30 and crypto20 mark these Crypto indexes. While this seems like a good Idea to some, others will oppose due to the fact that there are some requirements to invest in these tokens such as the required minimum investment amount. While others such as cryptoz provide the method with an index value, together with the components of money so that an investor is free to invest the amount he wants and choose not to invest in a crypto if not included in a index. Thus, indices give you an option to further streamline the sequence and reduce the risk involved.


The crypto market may look dangerous at first glance and many may doubt its authenticity, But the maturity that this market has achieved in a short time of its existence is amazing and the proof sufficient for its authenticity. The biggest concern of investors is volatility, for which there is a solution in the form of indices.