Learning the friendly way

Cryptography is the process of converting messages into unreadable text so that only the intended recipient will be able to read them. Cryptography is responsible for the security, anonymity, and trust less transactions of digital currency. – entirely without the services of a financial institution.

We'll define cryptography as the study of methods to exchange sensitive information over an insecure channel in such away that only authorized parties can access it. In our case, this will be exchanging ownership of cryptocurrencies (which is represented digitally), or transferring ownership by signing digital messages.

A bit of history:

Cryptography dates back to the time when people began exchanging messages in forms other than face-to-face conversations(e.g., via written letters). The first known use of cryptography can be traced to Egypt, about 2000 years ago, during the reign of Pharaoh Thutmose III. Other known historical uses of cryptography are in the works of Julius Caesar, who used a simple cipher for messages between him and his generals.

The purpose of cryptography in crypto

A blockchain-based cryptocurrency needs some form of encryption to secure its money supply from being stolen by hackers or malicious software. It also allows for the anonymous transfer of funds between individuals without requiring a trusted third party, such as a bank or government institution. Cryptocurrencies are entirely based on cryptographic ideas.

Compared to cash transfers, cryptocurrencies do have another layer of security built into the blockchain: cryptography. The purpose of which is to validate transactions and prevent unauthorized access to the ledger by keeping all information inside a digital file that only authorized people can see. It's kind of like a physical vault (or safe) where you can keep all your money. But, unlike a physical vault, there's also no way to access the safe without a private key or password.

Usage of cryptography in Cryptocurrency

Cryptography is used in several different components of Bitcoin's security model, as well as in other cryptocurrencies.

Bitcoin addresses, which are used to receive and send funds between people on the blockchain, have both public keys and private keys. Only the owner of an address's private key can spend funds sent to the address, and only the owner of an address's public key will be able to receive them.

Every time you send or receive bitcoins, your transaction is signed with the appropriate digital signature using your private key. Since you can't share your private key with the person receiving your bitcoins, they verify that the signature is correct using your public key. The process of sending and receiving bitcoins between addresses is entirely anonymous and doesn't require any personal information (although there are ways to link transactions to identities).

Cryptocurrencies use public-key cryptography in order to prove ownership of addresses and transactions. This is done with a piece of data known as a digital signature, which is obtained using the sender's private key, and attached to the end of every transaction block along with other information about that block. Each new transaction has its own signature, verifying that the sender owns the address that is being used to send the funds. Since only the owner of a private key can create a digital signature for it, this provides a very strong guarantee that nobody else has sent their cryptocurrency to an address other than the one currently being spent from.

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When it comes to understanding Bitcoin, an important aspect to get familiar with is the mining of it. As we explore what is Bitcoin mining and how does it work, we aim to empower you with a greater understanding of how the network functions as well as how blockchain technology facilitates the operations on the backend. Adaptable to many industries outside of the cryptocurrency space, blockchain technology is at the forefront of the tech revolution. Understanding how Bitcoin mining works is the first step to understanding the technology too. 

What does Bitcoin mining entail?

Forget about shovels and dark tunnels, Bitcoin mining is the decentralized manner in which transactions are verified and new coins are minted. Mining also plays a vital role in the maintenance and operation of the network, ensuring both the security and integrity of the platform at all times. The actual process of Bitcoin mining involves miners using sophisticated computers to solve complex cryptography problems.

The Bitcoin network is made up of a number of nodes (computers) and miners around the world that communicate with each other and constantly share the updated record of the blockchain. The blockchain stores all transactions in a transparent and immutable manner, allowing anyone to view it from wherever they are, however, no one can make any changes.

How does Bitcoin mining work?

Let’s say someone in Japan wants to send money to someone in America through the Bitcoin network. The user in Japan would initiate a transaction from their chosen wallet, pay a network fee, and execute the transaction. This transaction would then enter a mempool, a pool of transactions that are waiting to be confirmed. Typically mempools work on a “first come first serve” basis, however, users can opt to pay a higher network fee should they want to push their transaction further forward in the que. 

Miners will then pick up a number of transactions in the mempool and attempt to solve the complex cryptographic puzzle that will lead them to mining the block. The first miner to solve the puzzle is rewarded with the task of verifying the transactions and adding them to a block, in turn receiving the network fees as well as the block reward. Each block on the Bitcoin network can hold 1MB of transactional data. 

While many miners will attempt to solve the math problem using their own resources, only one miner will be successful. This has sparked a conversation, largely fueled by Elon Musk’s recent tweet, over the electricity consumption it takes to mine Bitcoin. Tesla, the company that Musk heads, recently withdrew Bitcoin from their payment options due to the un-eco friendly manner in which the network operates, as it goes against their company ethos. 

Once the miner has verified the transactions, ensuring that the wallet addresses exist and that there are available coins in the senders’ account, all the transactions are added to a block. This block is then added to the blockchain after the most recently added block, each block indicating the hash code of that block and the block before. This ensures that no one can tamper with the order or edit the content of any blocks. 

The user in America will then receive a notification confirming that their wallet has received the BTC, however it will need to go through three confirmations (sometimes more) before being accessible. Each confirmation is represented by a new block added to the blockchain following the block with your transaction. 

What is a block reward?

The block reward is a monetary reward given in Bitcoin to the miners for adding a new block to the blockchain. It is also the process used to mint new coins and in the process enter them into circulation. Alongside the block rewards, the miner responsible for adding the new block to the blockchain will also receive the network fees of each transaction verified within that block. 

This makes Bitcoin mining a lucrative endeavour, however, the start up costs are significant and your success rate will depend on the equipment, power, and cost of electricity in your area.

What is the halving mechanism?

As Bitcoin will only ever have 21 million coins released, Satoshi Nakamoto created a mechanism that ensures the slow release of coins over time. This is called the halving mechanism, and it automatically executes every 210,000 blocks. During the halving the block reward is halved, ensuring that the cryptocurrency remains deflationary in nature.

This means that for every 210,000 blocks added to the blockchain, the block reward given to the miners will halve. To date there have been three halvings in Bitcoin’s history, with the last one taking effect in May 2020. The block reward is currently 6.25 BTC for every block added to the blockchain.

Want to enjoy the benefits of Bitcoin without mining?

There’s another way to get in on the Bitcoin action without the use of sophisticated hardware and high electricity consumption. Users can tap into the Bitcoin network by buying BTC directly from their phones through the Tap Global app. The process is simple, takes minutes, and allows you to own your very own BTC. Through the Tap app users can also trade, store and spend their cryptocurrency, with advanced technology facilitating the process on the backend to ensure smooth and secure trading.

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With the recent rise in meme tokens and dog-themed coins, any coins with a Shiba Inu (a Japanese breed of dog) mascot seem to attract all the right kinds of attention. With the real Shiba Inu (SHIB) token winning "investment vehicle" of the year in 2021 after posting unbelievable gains, many are still wondering whether Shiba Inu is still a good token?

Where Did It All Begin?

A golden rule of getting in crypto is to understand exactly what you're buying in before taking the plunge. Before we explore Shiba Inu's history, we must start at the beginning with Dogecoin. Dogecoin was the original meme token and entered the crypto scene in 2013. The coin was designed to provide a "light-hearted" alternative to Bitcoin, poking fun at the seriousness of the crypto community at the time with its Shiba Inu logo. 

As it turned out, Dogecoin built a strong and loyal following that has stuck by the coin ever since. It wasn't until 2020 when Tesla CEO Elon Musk became vocal on Twitter about the cryptocurrency that DOGE truly went viral. 

What is Shiba Inu Coin?

Musk's interest in Dogecoin aligned nicely with the launch of Shiba Inu, which officially went live in August 2020. It wasn't long before SHIB climbed the ranks and became the biggest meme token on the market based on market capitalization, albeit for a brief moment. While it was dubbed in comparison as the "Doge Killer", Dogecoin still held the most value. It's worth noting that each time Musk mentioned Dogecoin in writing, Shiba Inu enjoyed some of that success and popularity as displayed by its growth.

Shiba Inu is an ERC-20 token built on the Ethereum platform that powers the Shiba Inu network. The platform features a range of products, from an exchange to an art incubator, and is compatible with a wide range of apps due to its Ethereum based nature. Trading for a fraction of a US cent, Shiba Inu offers a cost-effective way to enter the crypto market. Several businesses have also started accepting the cryptocurrency, allowing customers to pay for sales with SHIB.

How Is Shiba Inu Different From Dogecoin?

A great place to start when trying to understand SHIB is to determine the differences between these two biggest meme tokens. Starting with Dogecoin, the network provides a fast and cheap peer-to-peer payment system that is commonly used for tipping on social media platforms. 

Shiba Inu on the other hand is a little bit more complex. The platform provides a decentralized exchange (DEX) known as ShibaSwap which allows users to earn interest, as well as two other tokens, BONE and LEASH. The project describes itself as an experiment in decentralization. 

Shiba Inu is built on top of the Ethereum protocol, with the tokens created using various token standards, SHIB being an ERC-20 token. This makes it highly compatible with ETH wallets and most DeFi apps, while DOGE requires a specific wallet. These are all reasons as to why investors are calling it the Doge Killer.

Does Shiba Inu (SHIB) Have a Future?

In 2021, Shiba Inu saw gains of 53,241,775%. Investors that bought $2 worth of SHIB on 1 January would have been sitting on millions of dollars worth of returns at the height of the bull run. That's enough to make any digital currency enthusiast look twice. 

So far in 2022, the markets have been predominately down, with Bitcoin and Ethereum falling roughly 35% from their highs in November. Shiba Inu on the other hand has lost around 70% of its value since its all-time high in October 2021. Despite this, it has seen upward swings since, gaining a large amount of value in early February. 

The surge is believed to be contributed to by an Italian fast-food chain called Welly's. Welly's is also Shiba Inu-themed and accepts the cryptocurrency as a form of payment. Two other believed catalysts are the upcoming Shibarium (Shiba Inu's latest blockchain project) designed to reduce transaction fees and the project's vocalized intentions of entering the metaverse. 

Can Shiba Inu Coin Reach $1?

A popular question among crypto afficionados is whether Shiba Inu can reach $1. While there is certainly speculation in the market that this is possible over a substantial period of time, as with any cryptocurrency there is no guarantee on how much money it will be worth in the future. With the price affected by supply and demand economics, there will need to be a considerable amount of hype and demand for the cryptocurrency in order to it to reach that value.

While Shiba Inu could be a promising token should it skyrocket again, it is still considered to be a risky token. The cryptocurrency certainly has an attractive price point and a number of use cases, however, it is also in its early stages as a crypto and is currently less widely accepted when compared to other cryptocurrencies.

As the world waits on authority news regarding the regulatory framework surrounding cryptocurrencies, there are definitive hurdles that need to be reached before the Shiba Inu coin reaches $1, should it do so. There are currently over 545 trillion SHIB in circulation. For your protection, ensure that you never put more funds than you're willing to lose.

How Can I Buy Shiba Inu In The UK?

In love with SHIB or Shiba inus in general? Should you wish to purchase some Shiba Inu (SHIB) with your British pounds (GBP), you can do so easily and securely through the Tap mobile app, from where you can also store the tokens. Tap accepts GBP and supports faster payments for lightning-fast top-ups while allowing users to buy, sell, and engage in a number of cryptocurrency markets and services.

How Can I Buy Shiba Inu In Europe?

In love with SHIB in europe? We got you covered. Should you wish to purchase some Shiba Inu ( SHIB ) with Euros, you can do so with ease and securely through the Tap mobile app, from where you can also store the tokens. Tap accepts Euro and supports SEPA transfers to enable all EU & EEA traders and investors to buy, sell, and engage in a number of cryptocurrency markets and services. 

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While cryptocurrencies have been around for over a decade we continue to learn and observe new things in the market to this day. Over the years many trading patterns have been repeated, regulation has changed the nature of the game and of course, volatile price movements have played out.

While this sounds unpredictable and scary, it has also allowed trading analysts to observe the cyclical nature of these activities. This information allowed investors and customers to better understand the crypto market cycles, and more importantly, use them to their advantage. 

In this article, we'll show you how to not only understand the crypto market cycles but how to identify and use them to your advantage.

What are market cycles?

Reaching beyond the cryptocurrency market and across a wide range of assets, market cycles are no stranger to stocks, commodities, etc. They are regular occurrences and can be summarised as the stages in between the all-time high and the low of a market. Whether trading traditional stocks, money, or assets built on blockchain technology, market cycles are prevalent across the board.

The length of a market cycle can vary and will depend on what style of trading one is conducting (short term/long term) however they are always categorised by four main components. These phases in the cycle are categorized by the accumulation, markup, distribution, and markdown phases and will be outlined based on analysis and research below.

The four phases of a market cycle

1. Accumulation phase

This takes place when the market has reached a low and prices have flattened. While many view this as a negative stage in the market cycle, many others (particularly ones with experience in the crypto market) view it as a prime time to buy the asset. When traders accumulate the undervalued asset, this is referred to as "buying the dip" and is often a lucrative endeavour. 

These low price swings are often paired with a lot of indecision in the market as weak hands exit the market and long term traders enter it, representing a period of consolidation. This typically happens before an uptrend. The accumulation phase is over when the market sentiment moves from a negative stance to a neutral one. During this phase, a lot of money is both entering and leaving the market at the same time.

2. The markup phase

As the sentiment shifts, the market begins to climb and more stability takes shape. Typically more experienced traders will continue buying, further igniting the bullish trend, and in turn saturating the crypto's buying power. This will eventually fuel FOMO, drawing many buyers into the market and in turn pushing up the price. 

As the market greed increases and trading volumes spike, the markup phase will see high-profile investors begin to sell. This slows the price increases and causes a pullback in the market. As the accumulation phase saw a move from negative to neutral sentiments, the markup phase represents a shift from neutral to bullish to euphoria. 

3. Distribution phase

With the price reaching its peak, the mixture of sellers and buyers send the market into sideways trading. The sentiment is a combination of greed, fear and hope as some believe the market could spontaneously surge again. Typically, the distribution phase is coloured with many bullish price indicators such as head and shoulder trading patterns and double or triple tops, however, the sentiment will eventually shift to a negative space, easily triggered by bad news.

The distribution phase can take place over a short period of time, or last months on end, depending on the number of consolidations, breakouts, and pullbacks and is known to be the phase with the highest levels of volatility. The distribution phase will witness the sentiment turning negative.

4. The markdown phase

The markdown phase is the fourth and final phase in the market cycle and can be the most upsetting for inexperienced traders caught off guard. While some traders might sell at a loss, others maintain their positions looking to leverage a later phase of the next cycle.

The markdown phase sees a decline in price and is a strong indicator that a bottom is approaching. When the price reaches half of its peak value there is generally another mass sell-off, driving the downtrend further into the red. The sentiment is unequivocally negative. 

Example of a crypto market cycle

Looking at the Bitcoin network, many traders believe the cycles revolve around the halvings. Bitcoin halvings are when the miners' rewards for mining a new block are reduced by half, which takes place every 210,000 blocks (roughly every 4 years).

To date, three Bitcoin halvings have taken place, each one instigating a bull run in months to follow. The most recent halving took effect on 11 May 2020, when the BTC price was trading at $8,600. Just 7 months later the price reached $40,000 for the first time in history, setting off a string of all-time high records. To date, the highest Bitcoin price that has been reached is $68,789.63 in November 2021 but went on to lose 40% of its value over the next two months. 

Market cycles are based on the cryptocurrency's overall trading patterns and not on any exchange activity. In a perfect world, the cryptocurrency's trading patterns will reflect the four phases mentioned above in this set order, allowing a set amount of time between transitions.

With time, crypto customers will be able to identify these phases, allowing any individual to build strategies around when to open or close a position, leading to the best trade result. While there is still risk involved, understanding the data surrounding the cyclical nature of trading patterns will assist in getting the best out of a digital asset project.

Crypto supercycles

Crypto supercycles are a unique phenomenon in the blockchain industry. They involve price fluctuations across the entire crypto market, influenced by the increasing adoption of blockchain technology. This concept is more speculative than concrete, lacking well-defined parameters. It revolves around factors like the rise of institutional investors and retail adoption. Opinions vary regarding the existence of the supercycle (notably, Bitcoin's value has surged more than fivefold in a year). This market cycle stands out for its series of all-time highs, with minimal significant or lasting declines. Irrespective of the presence of a crypto supercycle, individuals can consider capitalizing on the market cycle by purchasing Bitcoin during the accumulation phase as prices gain traction after hitting a low point.

For those keen on comprehending crypto trading cycles, it's prudent to formulate a personal strategy for navigating diverse market cycles, as mentioned earlier. Analyzing market trends and patterns has the potential to be rewarding. While some individuals pursue day trading and financial services as a full-time occupation, studying the markets and their behaviors can in some instance also be a profitable part-time pursuit.

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Much like traditional stock portfolios, crypto portfolios can too be balanced to ensure a spread of returns and risks over the asset class. Building a diversified cryptocurrency portfolio can be done in many ways, however, in this article, we will be exploring a general approach that investors can use to build their own. 

From thoughtful diversification to asset allocation to buying your cryptocurrencies, the road to building a balanced crypto portfolio is not a complicated one. It will require some upkeep though, so be sure to factor in that you will need to balance your portfolio regularly. 

Starting with the basics, a cryptocurrency portfolio is a collection of varied crypto holdings held by an individual (these portfolios hold one asset class, while others can hold multiple asset classes and would require further asset allocation).

Some investors also choose to use a third party tracker which calculates the portfolio’s holdings and profits. A balanced portfolio will have a collection of coins, products and tokens, each with its own risks and rewards.

It should have a mixture of high and low market cap coins and might look something like this: 35% Bitcoin, 10% Ethereum, 25% stablecoins, 15% NFTs, and 15% altcoins (this is an example based on the current climate of the cryptocurrency market and not financial advice).

The 5 main types of cryptocurrencies on the crypto market

Before we start building our portfolios, let’s begin with understanding the 5 main categories that can be found on the cryptocurrency market today.

Most of the 20,000 cryptocurrencies on the market at the moment will fall into these options.

Payment Focused

Consider these the original first-generation cryptocurrencies, starting of course with Bitcoin. Many earlier projects were designed as systems of transferring value, take for example Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH). 

These types of coins typically have a high market cap.

Stablecoins

This category refers to all coins that are pegged to a fiat currency and commodity. These coins naturally bypass any volatility, ensuring a stable anchor in your portfolio and a safe haven for when the markets experience a dip.

While they might seem to represent more traditional assets, stablecoins provide a valuable contribution to the crypto ecosystem.

Examples include PAX Gold (PAXG) which is pegged to the price of gold, while options like Tether (USDT) and USD Coin (USDC) are pegged to the US dollar. 

Utility Tokens

Utility tokens are unique to their ecosystems and generally offer a product or service. This could come in the form of a coin used to pay transaction fees on a network, or a coin created to launch a crowdfunding initiative.

Examples include coins found on dapp and smart contract development platforms, Ethereum (ETH) and Binance Coin (BNB). 

Security Tokens 

Much like the traditional securities in the stock market, security tokens can take on many forms.

These digital forms of traditional securities have been integrated with blockchain technology and span across three categories: equities, debt and a hybrid of debt and equity. This can range from representing a bond issued by a project, equity in a company, or even voting rights. 

Governance Tokens

Governance tokens offer holders voting powers and a share of the project’s revenue. Similar to utility tokens, the value of a governance token directly relates to the success of the underlying project. Examples include Uniswap (UNI) and PancakeSwap (CAKE).

How to build a balanced crypto portfolio

When it comes to building a well balanced crypto portfolio there are plenty of different schools of thought.

These are our top recommendations, however, we encourage you to do your own research and ultimately go with what feels right. 

1. Diversify Risk

Ensure your crypto portfolio has an adequate amount of risk tolerance by incorporating high, medium and low-risk coin options, portioned appropriately.

It’s important to first establish what level of risk you are willing to take, and plan your portfolio accordingly. 

2. Include Stablecoins

While these aren’t associated with wild gains, stablecoins help to provide your portfolio with liquidity and are key to many DeFi dapps.

They also allow traders to quickly and easily exit a position or lock in gains whether in a bear market or a bull market.

3. Monitor The Market

Ensure that you are checking in to see what is happening in the market regularly and adjusting your well balanced crypto portfolio to best manage this.

Crypto markets can still be very volatile, so ensure that your trading decisions reflect what is happening. 

4. Monitor Your Emotions

This might be one of the biggest overseen aspects of trading but ensure that you have a grip on your emotions as they can play an integral part in your decision making.

Fear and greed are strong contenders when it comes to making logical trading decisions, make sure that these are not influencing any of your trades.

Don't let greed interfere, changing potential big gains to huge losses. Things can go terribly wrong when emotions are behind the wheel of trading decisions.

5. DYOR

We cannot stress it enough - always do your own research when exploring engaging with other cryptocurrencies. Never engage in a project that you cannot fully explain to another trader. Crypto involvement requires a substantial amount of due diligence.

While there is value in taking advice from a strong trader, ensure that you do your own vetting of the project before blindly trusting a stranger, this is your own money after all. 

6. Onlycommit what you’re willing to lose

As a golden rule of thumb when it comes to allocating funds, only allocate what you're willing to lose.

If you’ve made trading decisions that are causing you sleepless nights, consider a different approach, and ensure that should something go wrong that you have the financial means to stay standing. Your overall portfolio should be correctly balanced in order to ensure you can have rest-filled nights.

How to use a portfolio tracker

While typically used for short-term and day traders, trackers can also provide value to long term investors. Trackers provide a reliable way of monitoring the performance of your low, medium and high risk assets.

Crypto trackers also allow investors to measure their results across several blockchains and wallets in real-time, allowing one to directly measure the success or losses of their crypto holdings.

Portfolios typically involve holding multiple coins across various blockchains, so finding a compatible and suitable portfolio tracker makes sense.

First, you’ll need to select a good portfolio tracker that best suits your needs. Below we’ve outlined the top crypto portfolio trackers, although it's best to get a feel for the platform before diving in.

For instance, Pionex is better suited to high volume investors while Delta is better suited to beginners. See our selection below of top options on the market at the moment.

• CoinMarketCap
  One of the most used sources of information in the crypto space, CoinMarketCap also provides tracking functionality. Users can enter their coins, what price they were bought at and monitor their progress.
• Pionex
  Favoured to high volume investors, Pionex provides a more advanced option when it comes to tracking your crypto portfolio.
• CoinGecko
  Most commonly known as being a data aggregator, CoinGecko also allows users to track over 1,000 coins across its mobile and desktop crypto trackers.
• Delta
  Delta not only provides a very user-friendly crypto tracker, it also allows users to track a wide range of assets including fiat currencies, stocks, bonds, futures, and ETFs.

Aside from the look and feel, other factors to consider are safety and security, and whether it supports the wallet and coins in which you've allocated resources.

Building your crypto portfolio manually

When you’re ready to start building your well-balanced crypto portfolio, you will need to find a reliable platform and wallet on which to do so.

Ensure you stick to a regulated exchange and that the security behind the wallet you choose is of high standards. 

Tap mobile app offers a secure and convenient platform through which users can buy, sell, trade and store a wide range of cryptocurrencies. Learn more here on our website available on both desktop and mobile devices.

Next, you will need to decide on which coins you'd like to engage with, ensuring that you strategically distribute your capital with appropriate weightings.

Take cues from our Types of Cryptocurrencies above, deciding on how you wish to allocate the coins in order to build a balanced crypto portfolio.

We encourage you to conduct extensive research in this phase: A golden rule of engaging with cryptocurrency is to comprehend what crypto is before allocating any funds to it, as well as to understand each individual coin.

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Technical analysis is a method of evaluating the strength and weakness of an asset by collecting historical price data to identify trends. It involves using tools like charts, graphs, indicators or signals in order to compare them from past data in order to make predictions about what's going to happen next with the market for a specific financial instrument such as equities, crypto, commodities etc.

Technical analysis is a method of evaluating stocks, crypto and commodities using past market data. The goal here is to determine the future price movements. In contrast fundamental analysis which involves analyzing financial statements in order to assess what fair value would be for that company.

Technical Analysis can be applied to any security with historical trading data, such as cryptocurrencies, forex (foreign exchange), commodities and stocks.

Let’s now dive into the subject and learn more about the different tools and techniques that you can use for technical analysis.

The Market trend‍

‍‍The most important step in learning how to spot a trend is to figure out what one is. For any beginner in technical analysis, knowing how to identify the trend should be the first order of business. Let’s watch this Chart below:

We can here observe the three different trends:

The Uptrend: In an uptrend, the asset is going up and making higher highs with each wave. Each high is also greater than the last one, resulting in a series of higher lows as well that push prices even further upward.

The Downtrend: A downtrend is a pattern of decreasing price that continues until it breaks. It’s called "downtrend" because the asset keeps going down, making lower highs and lows each time they form.

The sideways trend: The asset trades between a dynamic range of prices in an horizontal channel.

You may as well encounter different terms such as “Bearish” and "Bullish" to refer to a trend. The term, Bullish comes from the bull who strikes upwards with its horns thus pushing prices higher; in contrast, Bearish comes from bear who drives down markets by striking downwards with their paws.

Resistance & Support

Understanding the support and resistance levels of a cryptocurrency can help you time your buying or selling to maximize profit. A technical trader identifies these points on their chart so they know where it's best to buy in, when there is likely an upcoming breakout, as well as knowing where not be eager with new investments because prices are more likely than ever before to reverse quickly at this price point. When the resistance level is broken, it usually becomes a support level and vice versa.

Support: Support is a level where buyers tend to concentrate, and this will help the downtrend that has been occurring stop or rebound.

Resistance: A level where an uptrend can be expected to pause or rebound. This is a concentration of sellers and indicates that the market may have reached its peak for now.

Candlestick

Candlestick charting is a popular way to track the market trend.  Candlestick chart, is also known as a Japanese candlestick chart (Developed in Japan in the 1700s, historical records indicate that this tool was first used to track rice prices). This type of financial chart is used to track stock prices or other asset prices. The candlestick's shape can vary depending on the high, low, opening and closing prices of a given day.

A candlestick shows both bullish and bearish price movement over its duration, and gives more detailed information than the simple bar charts. A candlestick looks at the prices during a specific time interval, such as a day. The main feature which distinguishes this from other charts is the ability to plot each day's open, high, low and close values on a single chart.

This method of charting involves plotting price data over time on an open, high low and close basis with wicks projecting out from each end of the body for daily bars or just one day in higher timeframe charts.

Bullish candle: The close is above the opening‍‍ (green)

‍Bearish candle: The close is below the opening (red)

Moving average and (MACD)

The moving average is a technical trading indicator that calculates the constantly changing stock price over time. It smoothes out this data by creating an average of different subsets to help investors make decisions on what direction prices are heading and how long they will continue to change in such directions.  A moving average is a customizable indicator meaning that an investor can freely choose whatever time frame they want when calculating an average.

The Moving average convergence divergence (MACD) is a trend-following momentum indicator that looks at the relationship between two moving averages of an asset's price and gives traders an indication to changes in momentum, strength, directionality and duration of a trend for a given asset.

It combine these 2 moving average: 

-A short-term moving average

-A long-term moving average

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Chart interpretation:

The lines on the chart below can be interpreted as follows:

-If the green line (MACD) is above or crosses over the orange line (signal), it means that momentum for a certain market is bullish. 

-On conversely, if the green line is below the orange one, then this shows bearishness in terms of momentum 

-When the lines diverge, it denotes a strengthening of the current trend. However, when they converge, this shows that there is likely to be an upcoming reversal in trends.

-When they cross, this signals confirmation that we have evidence for a change in momentum.
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Bollinger bands

Bollinger bands attempt to measure market volatility by creating a band around a moving average. This strategy was created by John Bollinger in the 1980s. They serve as a relative indicator of whether prices are high or low on a moving average.

Bollinger bands are typically used by traders who like to use a long-term approach. This technique can be applied to any major currency pair, as well as commodities and stocks. As opposed to short term strategies that try and capture very small price movements, this strategy works best when combined with a directional view where the trader believes that the market will either go up or down in the long run.

The main disadvantage to this technical analysis is that it is not as effective when markets are flat or choppy (trading range). This strategy can also be difficult to use for novice traders who do not have a good understanding of market conditions, and an entry/exit approach.

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News are a big influencer of crypto prices

Cryptocurrencies are heavily influenced by speculation, and even a small piece of news can trigger multiple price reactions by investors. 

For example, when Bitcoin Cash was launched on August 1st 2017, it resulted in a sharp decline in the price of Bitcoin as well as other cryptocurrencies as investors feared that a new competitor could undermine the value of existing cryptocurrencies.

The use of advance statistical techniques helps you to take into consideration past data to generate price forecasts. The best way to do this would be to look at historical prices and volumes for cryptos, and compare them to current data. This allows analysts and traders to gain some degree of insight on how the market price will react to future events.

Our aims is to help you grow your knowledge about trading and cryptocurrencies. That's why we're here to help you better understand Cryptocurrencies and trading technics. We want everyone who uses Tap not only to feel informed about market trends but also be inspired by crypto culture, which drives people like you and me into a passionate future for this technology.

If you wish to learn more find more resources in our dedicated education centre available here: Crypto Basics