2 Interesting Crypto Investing Indicators You May Not Know

IMPORTANT: Before we present the 2 interesting crypto investment indicators that we want to talk to you about today, we inform you that this article does not contain any investment recommendations or advice in terms of trading strategy. We just want to share our experience and knowledge with you. Each person must perform his own analysis, exercise critical thinking and properly measure the risks he incurs before investing. Never invest money that you cannot afford to lose.

The 2 indicators that we will present to you are, in our opinion, very important to take into account before investing in cryptocurrencies. But first, if you don’t know, where can you get cryptocurrency?

Where to buy cryptocurrencies?

To buy cryptocurrencies in 2022, there are a large number of options such as Bitcoin Profit app, eToroor Binance. Before choosing your platform, we advise you to read user reviews. Not all platforms are created equal and not all investors necessarily need the same trading tools or the same interfaces.

1time Indicator: Fear and Greed Index

The Fear and Greed Index tells you the psychological state of investors in the crypto market. This can be looked at alternative.me website. The degree of fear or greed is measured on a scale from 1 to 100. When the needle of the meter is in the red zone and the number is low, it means that people are afraid and tend to sell their crypto assets. Conversely, when the needle of the meter is in the green zone on the right, with a number close to 100, it means that people are buying more and more crypto-assets, and therefore the price of the assets tends to rise.

The question you should ask yourself is: is it better to buy crypto when this index is in the red zone or when it is in the green zone? We suggest that it is generally best to buy cryptos when the meter is in the red zone and sell when the meter is in the green.

When the meter is in green, it is because there have been strong price increases. People who are not familiar with the crypto market and do not have a well thought out investment strategy start buying because they see the prices going up and are hungry to make money. This price increase means potential profits for those who bought during bear marketthat is, when the gauge needle was in the red.

2th indicator: the average cost of mining bitcoin

The average cost of mining (or mining) bitcoin is an important factor that is not always sufficiently taken into account, especially by inexperienced investors. Let’s start by defining what it means to mine one or more bitcoins: to mine bitcoins means to create new bitcoins. As you may have already heard, only a maximum of 21 million bitcoins will exist in total, and of those 21 million, a a good 19 million have already been mined. Over time, the cost of bitcoin mining will become higher and higher, as the issuance of the remaining 2 million bitcoins will spread until 2140. This is part of bitcoin’s base code, programmed by its creator, Satoshi Nakamoto. Every 4 years, takes place a halvingand mining rewards are halved.

In order to mine bitcoins, it is necessary to use machines with an operating system that can beASICS, or other machines, and even theoretically a computer or a smartphone. that average bitcoin mining cost chart, which is the indicator we want to introduce to you, tells you the price of bitcoin and the average bitcoin mining cost. From our point of view is a very good time to buy a time when the average bitcoin mining cost crosses the bitcoin price. Throughout Bitcoin’s history, every time the bitcoin price line touched the average bitcoin mining price curve, the price didn’t go much lower, and then there was a rebound in price.

Conclusion

We hope these two indicators can be useful for you. Remember that the market cannot always go up, it goes up and down. In the long term, the traditional market has an upward trend and bitcoin has an even more bullish trend than the traditional market over the past few years. We are currently in a difficult period, an excellent time, from our point of view, to accumulate bitcoins with a long-term view of several years.

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