source: institut-mittelstand.com
Not too long time ago we started the 10KQA Challenge (details about it here). The core idea was simple: build a moderated list of 10,000 questions for anyone who wants to learn more about the blockchain and cryptocurrency in general. This challenge is already in our second week (the first week’s report can be found here)
source: coinmarketcap.com
The main question that has been asked during the last few months is what happened to the crypto market — is it the end of the market or just the average winter/spring correction? This was one of the most questions asked this week.
What are the main reasons for the huge drop in the crypto market in the beginning of 2018? (Full answer here)
Jordan French, from thestreet.com, marked 5 reasons for that:
- Tax Season
- Potential Regulation
- Mt. Gox Weight
- China’s Relation to Cryptocurrencies
- Google’s (as well as other social media) ban on Cryptocurrency
Here are some useful Reddit threads with discussions of that very question:
- https://www.reddit.com/r/BitcoinMarkets/comments/88b3az/what_are_the_main_reasons_for_a_huge_drop_in_the/
- https://www.reddit.com/r/ethtrader/comments/7ry491/how_to_survive_a_crypto_market_crash/
The current crypto crash shows that you could try to analyze and diversify your portfolio all you want, but all of the altcoins still just follow the Bitcoin price. So the question regarding what mistakes a young trader could make can are now more than relevant for anyone who wants to dive into this field.
What main mistakes might happen with a starting crypto enthusiast? (Full answer here.)
There are 5 common mistakes that you should keep your eyes on:
- Mistake #1: Trading on leverage
- Mistake #2: Repeating Mistake #1 after taking a big loss
- Mistake #3: Taking trades off of the charts from people on crypto Twitter
- Mistake #4: Not having a trading plan
- Mistake #5: Chasing prices
This leads us to better understand what strategies we can use in this market in order to trade successfully (but you should always remember to trade only the amount of money that you are ready and willing to lose):
What key approaches to crypto trading exist on the market? (Full answer here.)
Andrew Cook, a founder at Cook Investment Firm and a Reddit user, determines the 5 common types of trading in the market now:
- Moving Average Crossover Trading
- Momentum Trading
- Technical Trading
- Fundamental Trading
- Chinese News Trading
The next important question is regarding indicators that will help you analyze the situation.
Which indicators are used most among crypto traders? (Full answer here.)
Here is an interesting answer by WIEFIX, an author at coinpress.io.
He mentions 5 indicators:
- Moving Average
- Market Depth
- Most Recent Trades
- Trading Volume
- Moving Average Convergence Divergence.
And the last, and perhaps the most important, question that should be answered before you start trading is:
How do you make a fundamental analysis of Bitcoin? (Full answer here)
The user Dean Scott Walsh, a founder and author for Cryptorials, explained the most important measures that have to be taken into consideration by a Bitcoin beginner.
- Inflation and Monetary Supply
- Transactions
- Measuring Bitcoin Adoption
- Network Utility
- Network Health
- Average Block Size
- Hash Rate
- Network Deficit
Thanks for reading our weekly report. If you have any questions, feel free to ask them with #10KQA on Twitter and we will collect it for a future report. If you are an expert and would like to help out, please don’t hesitate to contact us and we’ll let you know how you can help out the crypto community.
To join our challenge and get new updates, follow us on:
Telegram: 10KQA
Twitter: @howtotoken
I will be appreciative of all participants, ideas, and discussions. It is my hope that we will all be able to get something positive from the process and that unforgettable feeling of having a flow.
We are also looking for moderators to join our challenge who will learn with us and search for new questions and answers regarding the blockchain and crypto in these categories:
- Core Blockchain Development
- Profits (trading, ICO, mining)
- Real Disruptive Models
- Laws and Regulations
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