Trading crypto is different than stocks and anything else man kind has ever seen. It is a different ball game with different rules (and lack of rules) so we can't go about trading the same way. It is the Wild Wild West.
One big thing about crypto trading is that there is a whole new category of signals and analysis no other financial asset has ever shown. So I created and started using the term: Cryptical Analysis - and hope that it will catch on in the crytpo trading world.
What Is Cryptical Analysis?
If you rely solely on technical analysis or your typical market analysis or methods/theories that apply to an asset (that has existed & can be defined) - it is a huge handicap and you will never trade better than a seasoned crypto trader.
It takes a balanced combo of cryptical analysis, technical analysis, and market analysis - and more importantly, when to weigh on what analysis in different situations.
As a seasoned crypto trader.. every day, I have to re-explain myself over and over again to new investors (or even experienced traders) these differences.. or hell. even just finding a name that defines this whole group of signal differences. And market analysis does not work; this is deeper, unique, and specialized..
Cryptical Analysis is:
- Analyzing the relationship between Bitcoin and Alt coins.
- Signals of manipulation from whales and pump & dump groups.
- Consistencies found within crypto's own crazy volatility.
- Trends & patterns within each sub-culture of exchanges.
- Deep psychology of new investors, in particular with the fomo phenomenon.
- Knowing when and when not to apply technical analysis or existing trade theories.
- Other growth that defies previous trading logic.
Those are just the things off the top of my head, and I will update this list as things come up in my day to day that I may have forgot. For now; I think it's good start - and instead of me (or you) having to explain over and over again - just send them to this page.
I hope we can all just start using Cryptical Analysis instead! Reminder; this is not to replace market analysis - this is adding on a whole new category. One I think this world-changing tech deserves.