Topic: SIGEN is a cryptocurrency trading platform. Exchange, P2P platform and exchanger - page 13. (Read 3440 times)

Smart Contract: Technology of the Future Already in Use
 
Smart Contract is one of the most promising technologies that is already successfully used and is revolutionizing multiple sectors.
 
What is Smart Contract?
 
In the first place, Smart Contract is a program or electronic protocol designed to transmit information and control terms of contract execution by both parties. In practical terms, Smart Contract rules out situations when a party does not comply with contractual terms. When conventional contracts are signed, you cannot entirely eliminate the risk of a bad faith party refusing to execute the contract. However, Smart Contract is smart for a reason: it ensures that both contract parties comply with the required terms.
 
How Smart Contracts are used
 
Smart Contracts are created in a blockchain network, i. e. a decentralized system comprising multiple computers with no single center of command. The blockchain can be used to transmit information, including information with real value. It's not transmitted via a centralized server — it is passed from one user directly to the other.
 
Assume that you have signed a contract regarding delivery of goods for a payment the customer has promised to transfer to you:
 
You have concluded a Smart Contract that responds to real transactions rather than promises to comply with its terms. The Smart Contract controls how contractual terms are executed, i. e. you cannot fail to deliver the goods if this provision is included in the contract.
 
However, the goods will only be shipped to the customer when the blockchain can “see” that the system has received the payment. This is a rough procedure of how Smart Contracts work. As you can see, it needs no intermediaries, notaries or courts to adjudicate contractual disputes.
 
Smart Contracts are not a technology of a distant future — it is rapidly developing now getting a foothold in payment systems, logistics and retail e-commerce. A revolution is taking shape right before our very eyes.

P2P: economy of equals

P2P trading implies equal partner and economic relationship without intermediaries.

Peer network

A P2P (peer-to-peer) network is called so, because all network participants are equipotent, i.e., they are equally privileged. In such a network, each computer is connected to another computer directly, without intermediaries.  

Together with that, each computer may request information from the other, in other words, act as a client. It may also process other computers’ requests, i.e., act as file servers. All cryptocurrencies are based on the P2P principle. This is what mainly distinguishes them from centralized money networks. In centralized systems, money depends on the whim of governments and central banks. Whereas in P2P distributed networks it is cryptocurrency users themselves who set forth the rules.  

P2P trading

All are aware that cryptocurrency trading takes place on crypto exchanges. However, practically all crypto exchanges are centralized. They charge a fee for cryptocurrency trading and exchange and, as a matter of fact, the funds of all users of a certain crypto exchange are stored in its single local account.

Nevertheless, there are also platforms which employ the decentralized P2P network principle. SIGEN.pro platform is also among them. It offers services on selling and buying cryptocurrency for fiat money directly between users without third party intermediaries.

The P2P platform trading is occurring as follows: the seller places an ad on the sale and specifies its method and terms. In the next step, a P2P account wallet is examined to see whether the required amount is available therein. Next, there is a contract with the buyer. The seller’s funds are transferred into a deposited account. The buyer pays for the transaction and the system notifies the seller of the payment. After a notification has been received, the buyer’s balance is credited with the needed amount.

Predicting cryptocurrency price: Zigzag and RSI
 
Such indicators of the price movement as Zigzag and RSI (Relative strength index) are additional ways for the forecast of the price. They allow to predict the development of the events in the market more precisely, however require a proper application.
 
Zigzag
 
Zigzag indicator shows the key trends in the price movement - maximum and minimum figures without small fluctuations. This indicator is better for the experienced traders. However, the beginners can understand the basic direction of the cryptocurrency movement in the future taking into account the price fluctuations in the past.
 
Nevertheless, it is not rational to rely on zigzag only when you make your predictions. Such large movements as zigzag shows should be reinforced by the data of other indicators. Therefore, Zigzag will become a very useful tool for the forecast.
 
Relative strength index
 
RSI (Relative Strength Index) will help to determine the right actions when there are no significant price fluctuations and the side trend dominates the market. At the schedule, it looks like a broken line with the figures from 0 to 100. It’s considered that the rate lower than 30 means the cryptocurrencies oversold, and the price can start growing. The rate higher than 30 means overpurchase, and the price can start falling.
 
However, RSI is quite  delicate tool for the forecasts. Traders beginners may interpret its figures in a wrong way, particularly if the market shows active dynamics. You shouldn’t rely on the data of this indicator only. Nevertheless, RSI may be informative and useful as additional indicator.

How the volume indicator predicts the cryptocurrency price

The foundations of the cryptocurrency technical analysis were developed by Charles Fow, first editor of The Wall Street Journal. He believed that the price of the asset could be predicted if taking into account some indicators. Particularly, volume indicator.
 
What is it?
 
On the schedules, the volume indicator appears as Volume. It shows how many deals were concluded by the traders within a certain period of time. As a rule, green columns mean the price growth while red columns show the decrease. It is believed that the analysis of the volume movements in the past may show the dynamics of the asset in the future.
 
How to use it?
 
Volume indicator is quite accurate way to predict the price, however you should remember some particularities - the volume indicator can show strong and quick growth. Such drastic decreases or growth may not reflect the real situation at the market but the speculations of the users who possess large assets.

• When the cryptocurrency trade volume and price grow simultaneously this is the sign of the bull trend. You should purchase coins.
• If the trade volume grows but the price falls down this is the sign of the bear trend. You should sell the assets.
• It also considered that significant decrease of the volume may show the potential trend reversal. When the volume starts to reduce it means the market will change its trend soon. The decrease will be followed by the growth, and vice-versa.
• At the same time, if they volume decreases together with the strong decrease of the price it means this signal is false. Usually, in such situations the trend reversal doesn’t occur at all.

Nevertheless, taking into account the general data about the volume indicator behaviour, you should remember that the experience in making forecasts of the price is gained gradually. Your first attempts to predict the dynamics should be reasonable and careful.

Do you accept new tokens (ERC 20) to list on your exchange? Please let me know. Thanks.

Almost everything can be bought with Bitcoin

And that’s true indeed. Despite constant rumors about the approaching Bitcoin banning, it becomes ever more firmly entrenched in everyday life. It is also misleading to consider it just as an investment tool, since it has already been actively used as a means of payment. 

Today you can pay for many goods and services with Bitcoin all over the world

Here are a few examples:

• In Czechia, most auto dealers accept payment in Bitcoins, including a popular Alza - it is the easiest thing to pay here using “digital gold”, while in a matter of minutes.
• Many think that Bitcoin is banned in China; however, reality says otherwise. A lot of stores accept Bitcoins, whereas not hiding it from the government at all. For example, you may buy sports cars with cryptocurrency - right on the stand there are prices in Bitcoin and in the national currency. 
• The Knox Group of companies in the United Arab Emirates sells real estate for Bitcoins - houses, apartments, and commercial property. It should be mentioned that it has quite a few customers. In addition, in Dubai it is possible to buy and rent cars using cryptocurrency, which is very popular.
• The Magnum Real Estate, a property management company based in New York,  is engaged in similar activity with Bitcoin.
• Tesla electric cars are sold worldwide for Bitcoins. It has already become a kind of the mainstream - to buy innovative cars for innovative money.
• Many European and American airline companies have already been selling air tickets for Bitcoins worldwide. Some of them also offer to pay with cryptocurrency for meals and drinks on board, whereas often with zero transfer fees.
• A number of travel companies accept Bitcoin as well, for instance, Destina travel agency in Spain. You can buy there all inclusive tours, in other words, to rest absolutely without cash. By the way, after the company have added the possibility to make settlements with Bitcoin, demand for its services increased by 150%.
• It is also possible to use Bitcoins to pay education at high ranking universities - University of Cumbria in Great Britain, Kings College in the USA, and others. A pioneer in this direction became one of Cyprus universities.
• Thousand web shops around the world accept Bitcoins for payment. With cryptocurrency you can buy virtually everything: ranging from foodstuff to household appliances. 
• In big cities it is already possible to pay with cryptocurrency at a cafe: order a cup of coffee, pizza, beer, and various snacks.

But this list is far from complete - in fact, you can pay with Bitcoin in much more cases. With each passing day, the number of companies and stores willing to accept cryptocurrency for payment grows. So soon in everyday life, we will be able to do without cash. Isn’t it cool!? 

Crowd psychology: a panic causes price crash

We already talked about a controlled panic, and today we are going to continue this topic. This is a common situation when there’s some negative news about from media, the cryptocurrency rate started declining, sometimes the decrease can be extremely significant. Why does it happen? It occurs due to the psychology of the crowd. Let’s discuss in details what it is.

• When the mass media publish positive news about Bitcoin and cryptocurrencies at all, people start buying coins actively, consequently the rate grows. High demand causes even a higher growth rate. Everybody tries to catch the train moving to the new price records. That’s how the psychology of the crowd works in a positive direction.
• However, when negative news appears, the cryptocurrency price starts falling. When the mass media declare that Bitcoin is nothing but a bubble, predict a quick collapse of the cryptocurrencies and so on, many people just can’t overcome the pressure and start to panic. Panic is a very dangerous phenomenon that can produce sad consequences in any field. In case of cryptocurrencies, panic causes the decrease of the rates. People start selling their assets massively. They think this is the only way to save at least a part of their money.

Unfortunately, many people are doing like that. People feel scared and decrease the rate significantly. Such situation could have been avoided if people were more patient and confident. However, this is human psychology. Due to this fact, some “interested individuals” can manipulate the crowd and make people sell their coins.

Therefore, stakeholders buy cryptocurrencies at the cheapest price and make good money when the price starts to grow again. It means they benefit from the human psychology. So, just learn to avoid panic and keep calm. A cool head is one of the most important factors for the successful trading!

Sectors that can be changed by Blockchain

Blockchain, thanks to its technical features, can change a lot of sectors of public life. We will tell you about some of them in this publication.

Projection

According to Blockchain technology all information is freely available, it cannot be changed or get lost. This allows to summarize all accumulated knowledge of incredibly accurate predictions in any areas - from sport to the Universe development.

Charity

A big problem of charity is the lack of the information whether the aid arrives in full and is put to good use. A block chain stretches directly from one user to another, bypassing intermediary units. Therefore donations, which are recorded on the network, will reach exactly the recipient who they are intended for and in the number they have been dispatched.

Allowance allocation

Blockchain can make an allowance allocation system absolutely honest. A smart contract will decide, how much and who should be given in line with a program. A public official will not be able to intervene in the process and, at their discretion, deprive people from socially vulnerable groups of their money. It cannot be stolen too.

Besides, all the described methods of applying Blockchain have already been used in those sectors and not only on a pilot basis.

Avoid controlled panic on the cryptocurrency market

Mind control is not horror stories from political shows. On the cryptocurrency market, traders’ mind control is  a trivial reality. Most frequently it is manifested in stirring up panic sentiments when the price is falling.
 
Bitcoin collapsed - panic!
 
Many notice that as a cryptocurrency price goes down, there are a lot of articles in the media with titles containing the words “bitcoin collapsed”, “bubble has burst”, “cryptocurrencies are done”, and so on. But there is no point in selling off your cryptocurrency investments. Possibly this attack was planned just with a view to make investors start to sell off their assets.
 
To start such an attack, any pretext is used, for instance: a successful attack of hackers, launching a new Bitcoin hard fork or “cryptocurrency banning”. Information can be submitted under the guise of insider. While, sometimes, the media may lie intentionally to spread panic and then merely appeal to the “well-versed sources’ mistake”.
 
How to avoid panic
 
While dealing with cryptocurrencies, you need to learn how to keep calm and to not panic.  First of all, you should be mindful of the fact that no assets can grow steadily - periods of growth always change to the times of decline. And not every price drop turns into a crash - it may well be a correction.
 
Besides, not every long and sharp fall in price is bad, especially if you are about to add some funds to your investment portfolio.   
 
The most important source of information for the investor and trader, who are seriously committed to working with a cryptocurrency, is... the price itself, its dynamic. Skilled investors practically neither watch nor listen to “sensational news” about the events in a cryptocurrency world. They pay attention to the price change, compare with its last dynamic and only based on this estimate their actions. 

A crypto investor’s rule: never put all eggs in one basket
 
One of the key rules of investing in the cryptocurrencies and trading on the crypto market is assets diversification. In other words, buying of different coins. In a recent publication we have written about it, and today we would like to proceed with the subject.
 
Selecting the coin
 
Until recently, beginning investors didn’t have difficulties with the main coin choice - it was Bitcoin. But now, even after a chain of price falls, Bitcoin remains a very expensive coin, which imposes restrictions on its buying.
 
So, striving for gradual increasing of investments in the cryptocurrencies, investors for starters choose lighter coins. For example, Litecoin, which many prefer as the main investment asset.
 
However, when the point is buying the rest coins - the choice is complicated, since there are over 1,000 cryptocurrencies on the market nowadays. Meanwhile, experienced investors don’t recommend acquiring relatively unknown coins massively, even though they look very perspective. They recommend starting from the first twenty of well known altcoins of different price and focus.   

In this case, it is still advised buying 1-2 little known coins, because under the appropriate development many of them have great growth potential and may bring profit amounting to thousands of percents at any moment.
 
Portfolio
 
It is necessary to be aware that it is impossible to reach large diversification on the crypto market, since it is different in synchronicity - it often happens that most coins either grow or fall in price simultaneously. 
 
Nevertheless, cryptocurrencies don’t change price in quite the same manner - some more similarly, others less; and some coins stay more stable than the market as a whole. There are coins, though, often unpopular, which can appreciate when all other coins are getting cheap.

Moreover,  quite regularly, separate coins begin to grow in price faster than the market, which allows to quickly transfer money exactly into one of that coins. Or, vise versa, some coin may fall faster than the market in general, thus investors manage to transfer their funds into more stable coins. It is necessary to observe the coin dynamics and create your own investment portfolio.
 
According to one of the most popular diversification scheme, the larger part of the portfolio funds must be invested in the main coin and 10-50% of the rest funds - in additional coins. However, we think that each investor should create their own investment portfolio, allotting cryptocurrencies the way that it is more profitable and convenient for them.

Bitcoin isn’t a bubble but the needle to pop the bubble

Cryptocurrency opponents very often call Bitcoin a “bubble”. They say allegedly its price is artificially high and someday it will burst. However, competent experts think otherwise.

Bitcoin isn’t a bubble

Bitcoin Foundation’s co-founder and CEO, Jon Matonis, stated that the fears related to the cryptocurrency ”bubble” are baseless. In fact, the bubbles can always be found on stock exchanges, and such artificial bubbles are constantly being inflated by central banks.     

“Bitcoin is indeed the needle that is going to pop the bubble. A bubble is the insane stock markets and equity markets that are backed by central banks. Those are the bubbles” - said Matonis, bearing in mind that cryptocurrencies penetrate economy increasingly more and sooner or later will put an end to the bubbles triggered by central banks.

A bubble isn’t that bad

Besides this version, there is another one, which is widespread lately. Its supporters say that Bitcoin is really a bubble, though there is nothing wrong with that. This very bubble was once the railroad boom in the United States of America in the 19th century, which ended but left behind a well-developed railway network.

dot.com was the same bubble at the dawn of the Internet age in 90s. The companies that were presented then on the Internet market disappeared, but the Internet itself survived and is still quite successful. 

Now, we can see that Bitcoin price is falling, but the number of companies associated with Bitcoin and other cryptocurrencies is increasing indeed. There are increasingly more hypotheses about what Bitcoin is. However, the very fact of its constant discussion proves that Bitcoin became a real factor of economy and finances.

SHA-256 Cryptographic hashing principle

A cryptographic hash code is a digital inscription for some kind of data. Algorithm, called SHA-256, allows to generate a unique signature of 256 bits. This is one of the most popular crypto algorithms, which is used in many cryptocurrencies, including Bitcoin. There is a bit more detailed information next, but without complex technical specifics. 

What is SHA-256

The SHA-256 algorithm is developed by the U.S. National Security Agency. It is intended to form fixed-length values from a random data set. These values will serve as the data identifier. 

In simple terms, the work of the algorithm looks like this: we add all our data to a text file and send it for processing to the algorithm which allows all data to go through hash functions. At the end of the process, we receive a cryptographic message that may appear as follows: ts9fa21bkfb0k21fs00s.

The combination is irreversible, i.e., it cannot be decrypted back, as it is done with regular combinations. That is why it is impossible to decrypt data, encrypted algorithmically, among other things, through SHA-256.

The scope of application of SHA-256

For example, Bitcoin itself is based on the SHA-256 algorithm, as well as its forks - Bitcoin Cash, in particular. Cryptocurrency mining is carried out on SHA-256 and represents, in fact, the nonstop number sorting to search for the correct hash amount value. Therefore, the greater your computing power, the faster the sorting and the faster the correct value can be received, a block created and the coin mined.

However, we encounter the algorithm much oftener, even though we don’t engage in cryptocurrencies. Because an SSL certificate, by which every website is protected, includes the SHA-256 algorithm for establishing and authenticating a secure site’s connection.

Bears pushing down: what is the bear trend in the cryptocurrency market?

Last time, we told you about the bulls in the cryptocurrency market. Today, we are going to talk what the bears do.

The bears attack from above

Many traders believe that the bears attack their prey swiping its paws downward. Therefore, when the price of the cryptocurrency is falling, and each subsequent value is lower than the previous one, and it is called bear trend. In such situation, people say bears dominate the market and sell their assets.

Among them, there are many bears who know how to earn on the falling price. However, many participants of the market wait for the approximation to the lowest point of the trend and the further growth. It’s considered a good moment for the entry on the market. Therefore, many people believe that the start of the bear trend is a good time for selling, and the end of the bear trend is a good moment for the purchases.

How to recognize the bears

The trader should determine the start of a bear market as soon as possible. For that, it’s necessary to see the cryptocurrency price diagram or draw it on your own  using two or three points of the cryptocurrency price. One can easily see the downward trend.

It is just the same as with the bull trend. There’s no need to hurry up and take hasty decisions. If the price is moving down it doesn’t mean the bear trend. It can be just a correction at the market. Wait for several days, then you will be able to determine the presence of the sustainable trend. For the cryptocurrencies market, it’s extremely important as the price fluctuations can occur very quickly, just in several hours.

Bulls Pushing Up: What is the Bull Trend in the Cryptocurrency Market
 
The cryptocurrency market is governed by two types of traders — the bulls and the bears. Today, we're going to review what the bulls do.
 
Why the Bull?
 
As traders themselves say, if the bull attacks it's always from the bottom upwards, by thrusting the opponent with its horns and tossing them up. In other words, a bull trend is an increase in the price of cryptocurrencies when the market is kind of pushing the price from the bottom point upwards.
 
It's easy to see that a bull trend is developing — it's sufficient to have a look at the cryptocurrency price diagram. An upward trend is a sequence of price values, with each subsequent value higher than the previous one. If the price goes up and immediately back down again — this is no trend, it's a short-term price increase. When, however, the price moves from one maximum value to another, i. e. when the overall price grows fast with slight downward fluctuations, this is the upward — bull — trend.
 
What shall I do?
 
A trader must be able to see when the market enters the bull trend rather than simply being adjusted. Many traders think that the start of a sustainable bull trend is the best time to enter the market since the stock price is constantly rising.
 
Most traders prefer the bull trend as its makes earning a profit easier and faster. When the stock price has been rising for a long period of time, the bulls are said to govern the market.
 
One should remember, however, that a trend must persist for at least several days rather than hours. If a trader prematurely views a short-term market move as a long-term trend, they might sustain losses. It bears a special importance on the cryptocurrency market, with expensive cryptocurrencies such as Bitcoin or Litecoin in particular, since the price behavior may change at rapid-fire pace, within a few hours, while losses may be huge. However, if a trader is right about picking up on a bull trend, their profits are going to be high.

Analyzing trend lines:
entering and exiting the cryptocurrency market
 
When to enter and exit the cryptocurrency market is essentially equivalent to when you should buy and sell coins. There are several ways to analyze trend lines to determine the best time to enter/exit:
 
●      Using a third point. A trend line is defined by two price extremes (lows/highs), which are confirmed by a third point. The third point tells you the best time to buy or sell cryptocurrency. Accordingly, a third point with an uptrend is a signal to buy. A third point with a downtrend is a signal to sell.
 
●      Using the resistance line. You should enter the market when the price breaks, i.e. exceeds the resistance level and begins to increase. But you need to closely monitor the correction. Watch for price changes in short periods, while the overall price is growing rapidly.
 
●      Using the support line If the market is clearly falling and breaking through the support line, you should sell assets given the slightest break above this line. Once again, this point was noted in previous stages of the downtrend.
 
●     Using the countertrend line You can profitably enter or exit a position by playing on the so-called countertrend. For example, a rising countertrend may occur just behind the trend line. In this case, the resistance line turns into a support line. Experienced traders often buy if prices touch this line. With the opposite movement, you can profitably exit the market when the countertrend breaks the support line, turning it into a resistance line. But you always need to watch the correction.
 
●      Using the sideways trend line When there is no price movement up or down, or when movement is weak, investors can profit from a sideways trend through short-term and medium-term trading. To do this, we use a horizontal line to split the area where the sideways trend has been observed: a price above this line is a signal to buy; a price below this level is a signal to sell.
 
We hope these recommendations will help you trade successfully on the cryptocurrency exchange. May you always find profits!

Don't trust bots when trading on a cryptocurrency exchange
 
You've probably heard of trading bots. These are special programs that trade autonomously on stock exchanges: They buy, sell, and make money. That seems like an excellent way to make trading easier. But things are not so simple, and many traders have come to regret their trust in them.
 
Trusting bots is very risky. Why?
 
●      Working properly with bots requires that you thoroughly study them and understand how they will behave in the market. A bot is just a program does not always make the best decision in critical situations, something a trader could do. There are plenty of examples where bots have started trading at a loss and created a financial disaster.
 
●      Free bots are infected with computer viruses that compromise traders' computers and steal money from their accounts. This happens quite often. It's best to avoid jeopardizing your computer, let alone your savings.
 
●      Paid bots also cannot be called 100% reliable. There are many instances where they've simply "frozen", causing traders to lose large amounts or even bankrupting them. In a word, a machine is a machine. There are no guarantees it won't breakdown.
 
Is it worth it to trust your money to bots when their reliability is so questionable? Hardly. Of course, those who have had success using bots may object to our arguments. But we still recommend that you be more careful and don't risk all your savings.
 
Good luck with successful trades and great profits!

The dollar is used for illicit trade far more often than cryptocurrencies
 
Governments and central banks of many countries have repeatedly accused bitcoin and other cryptocurrencies of complicity in illicit trade and money laundering. They say that bitcoin is used to finance terrorists, sell weapons and drugs, etc.
 
We disagree with this view. To justify our position, we would like to cite the recent statement by the US Treasury Department, which personally refuted this torrent of negativity. The agency's representatives directly stated that fiat money, especially the dollar, is used for criminal purposes far more than bitcoin.
 
Criminals prefer fiat money
 
So, no matter what people say, officials indicate that criminals prefer dollars. Moreover, most trade happens through banks and various payment services that position themselves as law-abiding businesses.
 
According to the UN, illicit trade brings criminals an annual income of about $2 trillion. By comparison, cryptocurrency-based revenues from such activities are a drop in the bucket.
 
This statement by the US Treasury is an excellent response to all cryptocurrency detractors, who occasionally call for banning bitcoin because it is frequently used by criminals for illicit trade. Logically, the dollar should also be banned, since it is used for these purposes much more often. But nobody is demanding this.
 
This statement can also be regarded as a positive signal for cryptocurrencies' further development and legalization.

What is cryptocurrency technical analysis?
 
Technical analysis can tell you the best time to enter a cryptocurrency, when to invest, and when to wait. To perform technical analysis, you need to learn something that scares beginning investors: tables and charts.
 
There's actually nothing frightening in the tables, charts and figures offered by cryptocurrency exchanges. Anyone who has decided to trade cryptocurrency and invest can understand them.
 
What is cryptocurrency technical analysis based on?
 
You analyze the trading volumes and price dynamics of the asset, in this case, a cryptocurrency. Technical analysis relies on the idea that events repeat themselves. History has a way of repeating itself. That's why an analysis of traders' reactions to any previous event lets us say that in most cases when an event repeats itself, the reaction will be similar.
 
Technical analysis requires that you have a good knowledge of past and present events, and that you account for forecasts. All of this can influence an asset's price.  You must also closely monitor indicators of supply and demand.
 
Technical analysis makes it possible to predict the dynamics of coins that have been traded on the market for a long time. But it should be used with caution on a new cryptocurrency. It is better to use fundamentals to analyze new cryptocurrencies.

What is cryptocurrency fundamental analysis?

Fundamental analysis is based on the fact that any cryptocurrency tends to its real price. The task of fundamental analysis is to determine that price.

Fundamental analysis of the traditional financial market relies on corporate financial statements. There is little information about the cryptocurrency market, but there are other tools that will help traders estimate a cryptocurrency's potential.

What is cryptocurrency fundamental analysis based on?

Every cryptocurrency has a document called a white paper. It is created by the cryptocurrency's developers. The document sets forth the idea behind the cryptocurrency and the mechanism for its implementation.

You use the white paper to evaluate the team's professionalism, mining parameters, and issue size (number of coins). GitHub developers have a website, where you can see a project's current stage of development and what its developers are offering that is new. Developers's activity and their ability to communicate online with users can say a lot about a coin's potential.

Pay attention is to a cryptocurrency's unique characteristics, i.e. what makes it different from existing cryptocurrencies, the reliability of its technology, its capitalization, initial investments, and how profits are distributed.

These indicators are used to estimate the cryptocurrency's long-term potential. That's why we recommend that you carefully read a cryptocurrency's white paper before investing in it. 

Pumping: what it is and what to do
 
The unregulated nature of the cryptocurrency market allows crypto traders to engage in so-called "pump and dump" schemes, i.e. buying up and selling off cryptocurrencies on a large-scale.
 
What does "pump and dump" mean in simple terms?
 
A pump (pumping) looks like a sharp increase in a cryptocurrency's exchange rate. At some point, after the coin has reached a very high price relative to the beginning of the pump, the price of the coin falls sharply. This is called dumping, or a dump.
 
A pump and dump can be orchestrated by even one user on a single exchange if he or she has enough money to start mass buying followed by a massive sell-off.
 
But, of course, truly large-scale pumps are organized by groups of traders who coordinate their actions in advance and start manipulating the market at a specific time. The current "gathering place" for pumpers is social networks, where they special groups that coordinate their actions before and during a pumping / dumping operation.
 
Pumping is planned in advance and follows as scheme like this:
 
●      "Positive" news, whether fabricated or overblown, is published on informational websites;
 
●      Everything possible is done to bolster potential investors' interest in the breaking news;
 
●      More and more inexperienced traders are brought in;
 
●      The novices' hopes of price growth are stoked.
 
How to recognize pumping
 
The start of pumping can be easily seen on a particular cryptocurrency exchange based on users' activity in the local chatroom. Experienced traders start telling unbelievable stories about how the coin rate is growing and is about to start growing even faster, and that you need to buy it as soon as possible.
 
Before the pump, traders push cryptocurrency price so high that inexperienced players do not believe it might fall, so they continue to buy as the exchange rate rises. At some point, the pumpers stop buying, but inexperienced traders continue. Then the pumpers sell everything at a high price, and the exchange rate goes down. Then, inexperienced traders panic and sell what they bought.  Thus, pumping "victims" buy high and sell low. Meanwhile, the pumpers make a profit.
 
Follow the rules!
 
Inexperienced trader don't have to lose money during pumping if they follow a few rules.
 
●      Don't buy coins if the rate has instantly increased by more than 20%.
 
●      Don't sell coins after there has been a brief price surge followed by a decline or contraction, since it will likely be followed by growth.
 
●      Don't believe sensational news, especially if traders are spreading it in chatrooms.
 
●      And, of course, don't use all your savings to buy coins when the price rises.
 
In any case, whether or not pumping is happening, cryptocurrency trading requires caution, experience, and common sense. So consider each step carefully. We wish you successful trades and profitable investments!