Category Archive : Swissblock academy

Access to financial literacy for all – swissblock banking venture for financial education.

Financial literacy is what we have been focusing from the start at swissblock. We believe that Our users can excel more in trading and banking if they have full knowledge of what is happening in financial world. From this financial literacy,  one can be able to take any financial decision at any point of life while making investment.

But this awareness cannot be done alone. We are playing our part by ensuring that our users are not paying any fees on crypto buying and selling . Still Many people are unaware of basic personal financial management techniques because either they have no proper platform to practise or lack of basic skills required to make financial decisions. Some part is also played by traditional banking which dont let you explore more features that keep the whole financial world just few taps away on your mobile phone screen.

Financial literacy and swissblock venture

To spread more awareness swissblock wants to recall its part in spreading financial literacy. Here are few highlights of our progress made in recent years.

In-app financial management tips and course to learn.

Our in-app features financial education awareness and swissblock academy section of our web contains all important education courses required to excel in financial field and to understand basic personal banking. Still struggling with your bills because of mismanagement? Learn it from swissblock and keep in-app track of all your funds and payments.

We have also added learn modules in our app placed on the dashboard making it easier for the users to navigate directly to the learn section and get inspiration from our educational block. The main benefit that users are getting from swissblock learn/ academy feature is that it saves time for additional research on search engines. That is why we call swissblock an All rounder app. We also expanded it to cryptocurrency basics, ETF’s and hot token analysis in swissblock analysis section.

We also know that many users are also just getting started so give them an inspiring view of banking and crypto trading, we have also introduced basic trading psychology topics to keep users away from FOMO and RISK. For your information, cryptocurrency trading is always linked with risk and proper risk management is also necessary. That is why financial literacy is preferred before investing.

Financial Literacy content for the public.

We are also planning to roll out our snacks newsletter for public guidance and awareness of banking and trading. On our YouTube channel we also did launch a course that adds up to your financial skills and in-app usage. Licensed professional wrote and published the newsletters that is applicable to the traders and those struggling with personal banking of all levels thus adding to the financial literacy.

Crypto charts interpretation and regular updates about market

We are not just a regular cryptocurrency exchange offering trading platform. We also know that in this volatile market, one needs a proper understanding of basics to execute timely trades. To ensure this, swissblock academy and analysis section is playing a huge role in shaping traders by publishing regular micro and macro level analysis of crypto and stocks market.

Understanding of charting patterns are made easy by our podcasts and regular expert sessions for users to understand the market movements. Trading on spot, futures and stocks market on swissblock crypto exchange is now more easy and secure and we are continuously striving to make users more literate and sharp in trading. Users also get benefit through swissblock weekly blog of plan of action that is useful for every trader at any stage.

We will continue to find new ways to empower our users to take right steps towards the financial ease and freedom.  We are committed to provide financial education round the clock to our users. 

How to start investing in crypto with Swissblock. 3 quick ways explained.

Investing in crypto is like nightmare for many people due to high fees and trading issues. Probably they haven’t find any good way to start investing in crypto. Swissblock has come up with swift and secure feature of investing in crypto and other stocks assets. Zero trading fees, Fast and secure system of buying and selling, High leverage feature for experienced traders is what makes swissblock unique and fastest growing crypto banking and exchange in fin tech and crypto industry.

Its now time to stop over thinking an start investing in crypto currency. Here are steps to start buying crypto currency with swissblock. If you want to own your first crypto currency and afraid of the taxes than you are on right platform. Swissblock provides you with stress free ways to buy crypto currency and investing in stocks. Swissblock take you by the hand and settle things once and for all. Here are three ways to start investing in crypto currency with swissblock.

START INVESTING IN CRYPTO AND BUY CRYPTO OF YOUR CHOICE

Here is the secret information that all the well known and cunning professionals don’t want you to know about crypto buying : You don’t need to pass any exam or need any certain qualification to buy crypto. You don’t need to look like tech savvy .You don’t even need to leave your house and go to bank to buy. But as we know that first step is always the hardest so to eradicate this saying, we have made it easy for you to buy bitcoin or ethereum through swissblock. You can start with as little as you want.

All you have to do is to click on the swissblock app and in just few clicks you will become owner of your first crypto currency ,either it be bitcoin ,ethereum or a whole lot of shiba. If you are still unable to decide about the crypto that you should buy than have a look at our biweekly crypto currency analysis in swissblock analysis section. We are even here to tell you the crypto you should buy to get good profits.

Earn interest, use spot and futures trading feature

If you have done with buying of crypto than you need to find ways to grow your crypto currency. Compound interest is also good feature which means that the interest that you earn, get reinvested and earns interest itself. Also the spot and futures feature for trading without any trading fee is also what we offering to our users to grow their crypto. This is undoubtedly the best factor to grow your crypto currency and to get start with investing in crypto.

The money in your bank will get less worthy with time and inflation and this is where crypto interest steps in to save your money. Swissblock is also offering you spot, futures, options, stocks ,volatility and leverage tokens trading feature to grow your investment.

Save your money with crypto

Many people are worried about finding the right time to invest their money in stocks and they do not want their time to be spend on managing their investments. That is why swissblock has come up with savings plan to save your time and investing oppurtuinties.

Here is the best thing about our savings plan: Our all system is automated and the user don’t need to spend much time on managing the investments. With swissblock banking and exchange ,you can take away the stress of managing and tracking your spending. Business payments in seconds and futuristic approach towards KYC using modern approach is what makes swissblock, the most growing banking app in US ,UK and EU.

Want to know about our cards? Check details about wonderful swissblock personalized cards here.

Money management and spending insights in swissblock app

Money management by traditional banks are boring and not up to the mark .According to a survey, people are mostly stressed about money and its management. Its been highest among business people and teenagers. We have also heard about the money management problems that people face when they were clinging to their old banks. One major thing that come up is the time problem and expense management while managing multiple accounts.

Money management and expert reviews


Now we are moving one step towards betterment and solution of this problem offered by swissblock bank. You must be seeing the personalized swissblock card on your screen and now you can link your all accounts with that card either its GBP or EUR. Lets have a quick review about how money management works in swissblock

Swissblock spending insights


Your spending insight’s, balance , recent transactions as well as other useful information will be at your fingertips. A major benefit is that  you will also be able to move your funds with just one click on screen.
Track your balance and transactions with clarity in money management.
 The one obvious thing now is that clarity is  key to make financial decisions making it easier to manage budget and set aside money for bills. Swissblock bank after the recent update makes it central hub for all your transactions and business payments. Keeping track of your spending by graphs and other insights is also now possible with swissblock updated app.

Linking accounts to your card


Now there is no more jumping between banking apps as swissblock covers your all financial needs. Swipe your debit and credit card to see your balance and recent transactions along with account details. See your balances across all your sub-accounts without any need to do the math as we will do that for you and tell your total net cash.

We are really excited to get  connected account feature in your hands
After diligent efforts of many months it has been possible to make subaccounts and other linked accounts with your swissblock card. You can check further about linked accounts and personalized cards in your “community discussion thread” where we encourage you to contribute to the cause. Ask questions, get directions and we welcome feedback too. We assure that by swissblock money management is going to be an interesting thing. Our insights are really cool. You can say that revolutionizing the fin tech industry with blockchain induced features is worth using thing.

Virtual cards, swissblock explained

Running business requires a lot of efforts and time and its not an easy task to keep record of the money and spending and that’s where swissblock is going to help you. These are speedy and secure cards with sustainable feature as they are issued digitally by the system. This means there is no plastic waste and no direct contact with the environment. Also no harmful distribution cycles makes it unique. Swissblock also offers various perks to pro customers which will be discussed later in detail. You can also personalize these cards by choosing name and colors.

Future developments in swissblock app


There is still a long way ahead of us in banking and our Research and development team also incubated best money management plans to make swissblock the best bank for all your needs. Swissblock fee less crypto exchange also makes it easy to buy crypto of your own choice without giving any fee to exchange. Users can trade spot, futures, options with leverage trades also without paying anything A new merge of blockchain and banking is doing wonders and always striving hard to serve better than others. Stay tuned for further updates.
Swissblock- a safe block for your future assets

Swissblock bank -Your 1st All rounder money management app

The Swissblock bank sign up is only half the battle. The major perfect use case along with the opening of swissblock bank account is to make sure that you are doing everything right to top up your swissblock account. We always sign up and forget the account just because there is no proper strategy to keep the account filled with bucks and active. Swissblock bank has come up with the solution and offering you various means to keep the account active. Here is how you can make use of the hottest account in town by just maintaining cash flow.

Bring swissblock bank account to life

To start banking via swissblock, you just need to top up your account with any currency or crypto of your choice. Starting with the basics, the main thing you need is to make sure you do not letting your account dried up. Topping up swissblock bank account is easy. You just need to transfer money (crypto or fiat ) to your swissblock bank account’s IBAN. Just copy your unique IBAN from the details section of your bank account and transfer on that IBAN number.

If you are using crypto as method, just use the swissblock’s crypto exchange wallet to link it with your bank and start cashing out your crypto anywhere you want. After this you are almost ready to go.

Its salary time and you are stuck with old methods

If you are reading this than probably you are getting your salary in other local banks rather than using fintech banks for easy and early payouts. Waiting is hard? Yes for salary its very hard to wait. Calling bank admin on their support asking for the cause of delays and late payouts with no option of payment tracking is heart wrenching.

Also is it very hard to change habits ? Again Yes. It is very hard to change the bank as you are afraid of new signup process and documentation of registration. But now Swissblock has come up with the faster system of sign up without any no useful KYC. We just do your basic verification for system and payment security. Above that we have provided very easy way to sign up and register.

Its just matter of time for your salary to arrive through swissblock bank. There is no need to leave swissblock app to redirect your salary to swissblock account.

Here is how you can do this in simple steps.

  • Open the app and follow the “Bank section “
  • Select “account deposit”
  • Tap ” Salary and payments” and select swissblock account to use to receive your salary
  • Tap “send email” and swissblock will generate a prepared email containing your bank account details of swissblock bank to your client.

At swissblock, we make sure that everyone has everything required to spend and save crypto and fiat without any difficulty of late payments and other enormous fees on transactions. All financial needs have been available in 1 place and it has been possible through swissblock. Make sure you are using these techniques to keep your account active and safe with proper money management .

3 Ways to manage a crypto portfolio on Swissblock with good fundamentals

There are many ways to manage a crypto portfolio on Swissblock including knowing the risks involved in cryptocurrencies and using stop losses and take profits. Analyzing your crypto trades concerning profit and loss and keeping a track of everything is very critical to attaining tangible results and making informed decisions. Managing your Bitcoin and other cryptocurrencies better by calculating the gains and losses also helps you to maximize the profits by not repeating the mistakes you made.

If you are someone who is planning to buy cryptocurrencies, you might want to first learn about the technical analysis so you don’t fall prey to the rug pulls and scammers. After that, knowing about technical analysis is a plus point that gives you an upper hand over other traders as sometimes the market is also moved by the retail traders who solely rely on technical analysis.

If you are an investor or trader and have already bought cryptocurrency then the first step is to analyze the performance of each coin and token separately. Say if a coin is not performing well, you might want to replace it with other which has good volatility in your favorable direction. In this way, you’ll be able to optimize your trading strategies to maximize your profits with some extraordinary skills to manage a crypto portfolio. This boosts up your overall portfolio.

Make it your habit to calculate your profit and loss as it is the most efficient way to monitor your portfolio. Continue reading to learn different ways to manage a crypto portfolio. If you haven’t built your Crypto portfolio yet, Join Swissblock today and trade without worrying about the trading fee as Swissblock charges zero trading fees for any volume of trade.

It supports a large number of crypto pairs to help you choose the one on your watch list. Spot trade has the largest number of pairs and there are more being added every day. Crypto pairs are added to the platform after a complete screening by a team of experts that helps to manage a crypto portfolio . The trading volume of Swissblock is being multiplied as the platform is getting more attention due to its multifunctional features.

Soon, it will be among the top 10 crypto exchanges concerning trading volume. So to manage a portfolio it requires proper strategies and fundamentals to understand wallet management.

Ways to manage a crypto portfolio on Swissblock

How to manage a Crypto Portfolio:

It might sound difficult to manage a crypto portfolio but with Swissblock trading tools and trading tools, you can be straightforward and involve simple math. The followings are the simple ways to manage your portfolio.

1.      Transaction-to-transaction

Transaction-to-transaction is a method more suited for active crypto traders. To calculate your profits and losses on a transaction-to-transaction basis, you’ll need to do two things.

Step 1: Calculate the cost price and value of each trade in your local currency.

                     Step 2: Compare the difference between trade and cost value to determine the profit or loss.

Since Swissblock does not charge any trading fees, you don’t need to include those but you might consider including fees when you trade on other platforms.

For example, you bought one Bitcoin and you want to calculate the profit or loss on it. You’ll first check the cost value, the price it cost you to buy one Bitcoin. Then you’ll require to find the trade value, the value of holding at the time of selling. Now you can calculate the profit or loss by subtracting cost value from trade value. If the difference is positive, you are in profit; it’s a loss otherwise.

Formula:

Profit = Trade value – cost value

2.      Profit/ Loss Year-to-Date (YTD)

Year-to-Date (YTD) simply compares the value of your balances at the start of the year with the end of the year of a calendar year. This particular calculation method is more suitable for long-term crypto investors who HODL. If you’re a day trader you should not be looking for this approach. The difference with the approach is you’ll be using the exchange rate at the end of the year rather than each transaction of the pair.

3.      Open & closed positions

The first two approaches are used for your previous orders, but what if you have opened positions? An open position means you have bought a coin and did not sell it. Contrary to this, if you bought a coin and sold it then that trade is a closed position. While you open a position and enter a trader, you first need to define yourself as an investor or a trader. The main difference is the holding period as day traders open and closes the trade in a few hours. Likewise, the short-term traders hold their portfolios for a few days, and then the mid-term traders hold their positions for a few months.

Investors are long-term traders and they keep the trade open from 1 year to 5 years or even more. You first need to categorize your positions on different coins of your portfolio to track the performance accordingly. For example, a mid-term trader would not be worried if the price dropped after a few days of opening the trade but it does affect the day trader. Traders can download a spreadsheet from Swissblock to track their order history.

Swissblock working of cryptocurrency exchange

How does fee-less Swissblock cryptocurrency exchange Work? Innovative features and 0% commission

Working of cryptocurrency exchange is a frequently searched term as people are more interested to learn everything about what’s going on at the backend of the exchanges they interact with. At the front end (with respect to the user interface) almost all the exchanges of the type are almost similar – but that’s not the case when it comes to how these exchanges operate.

After Bitcoin popped up there was no platform to buy and sell cryptocurrencies until a year later. The only way to buy it was either pair-to-pair trading or mining it. One involved huge risk and the other was not feasible. In 2010 a portal similar to PayPal called Bitcoin market was created to offer Bitcoin buying and selling services using payment systems – the first cryptocurrency exchange. Just a year after, dozens of cryptocurrency exchanges were there for people to trade a wide range of cryptocurrency pairs with ease.

Types of Cryptocurrency Exchanges:

There are mainly three types of cryptocurrency exchanges.

  1. CEX (Centralized Exchanges)
  2. DEX (Decentralized Exchanges)
  3. Hybrid Exchanges

Swissblock working of cryptocurrency exchange

To begin with, Centralized Exchanges are the most popular exchanges in the market as they have the largest number of users. Centralized Exchanges have almost full control over users’ funds. These are profit-oriented companies run by a single person or an organization. Users have to open an account with these exchanges. Since these are well-regularized platforms and follow the rules to operate, users go through a KYC (Know Your Customer) process before making the exchange fully operational. Because these exchanges hold users’ funds, they become a very potential target for hackers to sneak in and steal the funds. Centralized Exchange undergoes rigorous security tests to act against these attempts and keep most of the funds in cold wallets (offline wallets).

Decentralized Exchanges are not owned by anyone but the users. The developers get their fair share from trading fees but these platforms don’t have any control over the traders’ assets. Users can interact with these exchanges by connecting their wallets like Trust Wallet or MetaMask.

Hybrid Exchanges are the contra-mix of the aforementioned exchanges and combine the features offered by both. several platforms offer the hybrid interface: a simple interface using DEX with fewer options to trade and advanced options to help experienced traders trade on CEX.

How do cryptocurrency Exchanges make money?

Cryptocurrency exchanges earn money in various ways, the first being the trading commission. Whenever you execute an order there’s a fee collected in the exchange for providing you these services. Swissblock Exchange, however, is the first and only cryptocurrency exchange that charges no fees from the users for any type of trading activity across the platform.

The other way typical cryptocurrency exchanges work is earning through the spread. Spread is the difference between the selling and buying price of an asset.

A listing fee is another way for the exchanges to earn. Whenever there’s a coin offered on an exchange, the exchange charges a hefty fee from the coin’s team. And if it requires a launchpad for an ICO, the fee charged increases even more. These coins get more exposure to new traders and it is shared by the exchange on different platforms for marketing purposes – it’s worth paying.

Swissblock: Working of a Cryptocurrency Exchange

DEXs work on the core principle of the decentralized nature of cryptocurrencies. There are no control authorities and there are no regulations to control the process. These exchanges cannot be easily hacked or shut down by governments. Since users have more control over their assets and there’s more transparency, people who want to stay anonymous choose these platforms.

Working with CEX or Centralized exchanges is complex compared to DEXs. Trusted by big investors and institutions, these platforms have the highest trading volume and number of daily visitors. Centralized Exchanges have to abide by the regulatory trends and abide by the local and international laws to function. Since these platforms are offered by some organization or a person, governments and investors can hold that entity responsible if anything goes wrong. CEX or a centralized cryptocurrency exchange work like a traditional stock exchange. The governing company charges for the services of crypto-to-crypto swaps and fiat to crypto swaps and vice versa.

The Cryptocurrency exchanges function as a custodian to hold investors’ funds like a bank. All kind of trading takes place on the secure databases of the exchanges like Swissblock. Unlike DEXs, these exchanges don’t give traders private or public keys but login details to their accounts to access their funds.

Swissblock is one such Cryptocurrency exchange that leverages a multi-node approach to tackle the high traffic and improve the scalability for traders. The platform offers all kinds of trading including stocks free of cost. Combining accessibility, security, and speed, Swissblock is becoming one of the most loved crypto exchanges by crypto enthusiasts.  

Fundamental Analysis

Fundamental Analysis: How to do research (DYOR) before investing

Cryptocurrencies are booming and everyone wants to get their hands on these assets. Some get over-ambitious and jump in without proper research and encounter “rug pull”. This happens due to the lack of doing DYOR (Do Your Own Research) and picking up the coins that turn out to be a scam or a “Rug Pull”.

What is Rug Pull:

Cryptocurrencies are trustless, decentralized, virtual digital assets. The trustless environment of cryptocurrencies offers a peer-to-peer atmosphere where people can make the transaction without knowing each other and without the involvement of any third party. The decentralized nature of cryptocurrencies offers the freedom to take the control of assets however this also means there is no to call if something goes wrong. This ‘trustlessness’ and decentralized nature is exploited by scammers in many ways to implement rug pulls or crypto scams. The rug pull is a mechanism where the developer or team of a cryptocurrency project abandons the project or flees with the investors’ funds. Scammers use the approaches of “Yanking Liquidity”, selling a large number of shares, and the inability to sell the assets.

Fundamental Analysis

1.    Advance Approach to Spot a Rug Pull:

Developers are shrewd and they use deceptive tactics to win the trust of initial investors by promising or offering them huge rewards. This inspires more people to get in and once there is enough money in the project they just ‘pull the rug’. The following are relatively advanced methods to spot such rug pulls.

1.      Xerox Layouts:

Scammers want easy money by shortcuts so they don’t want to spend time writing codes and whitepapers and developing websites all with new layouts. Open source is a term used for projects which are open source and have their source code publically available. Even Bitcoin was released as an open-source project back in 2009. They just choose an open-source project copy its code and layout and boom the project is ready to fool around. These projects just outsource images or even use google search images in their projects instead of wasting weeks crafting new ones.

2.      Liquidity:

Liquidity plays an important role in the price strengthening of a project because that’s where your funds go. You can do a liquidity check only if you are investing in a token as big projects like AAVE and Compound have billions of dollars to provide liquidity. Lower liquidity means it is easier to manipulate the price of a token to 2x, 5x, and even 20x with a small amount if the liquidity is a few thousand dollars. However, if the richer liquidity means there will be more price stabilization.

3.      Involving Social Media Influencers:

This is the most evident sign to spot a rug pull when just a random singer speaks sponsored words to coax you to buy a token. These influences have a good following on their social media and they don’t necessarily know about the project they are selling; they don’t care much unless they are being paid well. Influencers don’t really do the research or read a whitepaper for you. Especially the A list celebrities don’t have time to read the contract code or look at the website. A small briefing with a good share suffices. If you can’t let these choose your romantic partners then don’t let them choose your coins as well.

4.      Whitepapers:

Speaking of whitepapers, converting visitors into investors and potential buyers it’s crucial to craft out perfect words with perfection. This has a psychological effect on the readers and creates an opportunity for good conversion. Writing has many phases and even revising a single page takes days. So, when it comes to whitepapers, the good projects take their time to perfect however, the daydreaming scammers don’t pay much heed to it as it takes time and hard work. A good whitepaper includes statistics images and numbers to explain the use case of the project with a very practical roadmap. The length is, needless to say, also important because any whitepapers include in-depth details about the project. so, if a whitepaper is less than 15 pages, call it a sale page instead – no I don’t you!

5.      Looking at the Code:

The most efficient way to authenticate a project is to look at the code of smart contracts. Projects run on codes so if there is something not right like only allowing developers to sell the tokens, your eyes must catch it in the first go.

2.    Simple ways to spot Rug Pull and DYOR:

The above-mentioned ways are tricky and not everyone can look at smart contracts and understand the syntax. Luckily there are simpler ways to Spot a rug pull and DYOR (Do Your Own Research). For those who are not aware, DYOR is a term that is used to inspire people to do the proper research before investing in or buying a token or a coin.

1.      Blockchain Explorer:

Blockchain explorers are a great tool to check the authenticity of a token on the said blockchain. For example, you are planning to invest in a Dogecoin token. Since Dogecoin is a token of Ethereum Blockchain, you just need to visit EthScan and paste the following address in the search bar to see who holds these tokens the most.

Fundamental Analysis

Scroll down and click on the “Holders” tab. If the top wallets are holding 20% or more of the total quantity, then probably you should avoid investing.

 

2.      Websites Tools:

There are plenty of credible websites which can read the smart contracts for you and point out if there is anything not right. The first website RugDoc can help you read the contracts and point out the problems. A similar website called Sniffer can also check malicious contracts to warn investors about scams.

Summary: Technical Analysis

To conclude, make it your habit to go through a proper research mechanism. The hack is to do everything yourself and not fall for the traps laid by people winning referrals and huge cuts from your loss. Scammers are becoming smart every day and they use advanced approaches to snatch off hard-earned money. Do proper research before investing and if you sniff even a smaller error don’t let the coaxing promises blind you.

Stay SAFU!

 

Swissblock Technical Analysis

Making Sense of Technical Analysis

Technical analysis is the presumption of the market trend and price movement by incorporating historical data, indicators, and patterns. Traders and investors use special mathematical tools to predict the market movement to seek trade opportunities.

Technical Analysis

Fundamental Analysis:

The fundament approach is mainly used by long-term investors and for those entering relatively newer projects. We have already covered what techniques are used by these newer projects to scam people. Many indications can tell if a project is authentic or not. Fundamental Analysis mainly focuses on the followings:

  • News announcements specific to the coins
  • Economic and Financial Statistics of the coins
  • Looking at Project-related data including Website Whitepaper, and MarketCap

Technical Analysis:

Technical traders believe that the market movement is not random but follows patterns. So, if we spot what those patterns are, we can easily predict the market direction. Technical traders use technical analysis to forecast prices by processing statistical trends by analyzing historical data. The patterns are repeatable and identifiable which gives technical traders an upper edge to secure good gains.

Understanding the chart and tools: Technical Analysis

Understanding the price chart and its tools is the first step you take toward learning technical analysis. Most traders use the TradingView platform as it is equipped with advanced interactive tools to help traders draw their strategy best. Let’s first break the TradingView chart of the Bitcoin US dollar pair.

TradingView Chart - Technical Analysis

Candlestick Chart:

Candlesticks are being used since 1700 to show the price and its momentum. In a candlestick chart, each candle on the chart will show the price movement of the coin in a set timeframe. If the price increase during that time the candle will be green and if the price drops the candle formed will be red as shown in the image below.Candle Stick Chart

The thicker area of a candle is called the body which shows the opening and closing price of the triangle. The bars of candles are called wicks which show the price minimum and maximum price movement during the set time period. For example, if an asset, like Bitcoin, is trading at $40,000 and a new candle starts forming at 12:00 PM. Now since the candle is of a 4-hour time frame, it should be closed at 4:00 PM. If the price before candle closing was about $40,000 then the candle should be green. And if the price dropped below the $40,000 mark the candle formed will be red. This decides the overall color of the candle.

Candlestick Patterns:

Though candlesticks show the price movement yet technical traders believe that their shape can tell a lot to predict the market direction. Traders use one or three candles to identify the trend and trade accordingly.

1.      Three Line Strike:

Three line strike

This is a trend reversal pattern with an accuracy of 83%. The line Strike can be bullish or bearish depending on the previous trend. As in the image above, the pattern shows a bullish reversal. The price is dropping making lower lows until they strike a huge bullish candle indicating the trend reversal.

2.      Evening Star and Morning Star:

Evening Star

The market moves upwards when new buyers enter the market. Such candles appear at the peak of an uptrend further pulling the price up to a new high. Since new buyers don’t enter the trader this continuation of the bullish run stops. As the selling pressure rises, the existing traders exit the market making it dwindle by making lower lows. Evening Star appears at the bottom and has exactly opposite outcomes. This type of candle has an accuracy of 72% according to our Experts.

Also Read: Trade Crypto Spot, Futures, Margin, and Options on a single platform

3.      Hammer:

Hammer

These are actually two types of candlesticks: Hammer and inverse Hammer.

A hammer is formed while in a downtrend with a short body and a long wick. During a bearish trend, although the price dropped this type of candle shows that there is buying pressure below this price level so a bullish reversal is expected.

On contrary to this, the inverse hammer is found in a bullish trend with a strong upper body and lower long wick. This kind of candle shows that though new traders are entering the market there’s a lot more selling pressure above this level so a downtrend is very likely to start.

4.      Bullish Engulfing and Bearish:

Bullish Engulfing

This pattern is defined by two candles during a bearish market trend. There’s one small red candle being engulfed by a large green candle. This clearly sends a bullish signal to buyers to enter the trade and alter the trend. The bearish Engulfing pattern appears in a contrary position and can drag the market downwards causing a reversal.

These are some most important candlestick patterns traders should be looking for to execute profitable trades. These patterns play important role in driving market direction as retail traders or technical traders enter or exit a trade on these patterns.

Summary: Technical Analysis

The reliability of technical analysis is always questioned as no technical or fundamental analysis tool is perfect and this makes the trade even trickier. Market influencers and big players often fake these patterns to knock the retail traders out of the trade. These well-funded players have advanced algorithms with lightning-fast trade abilities. They alter the market to look so obvious to move in a direction to trap retail investors through fakeouts. It would be wise to first execute the fundamental analysis to spot if there are any influencers in the project and then use these technical factors to spot some reliable trade opportunities.

Swissblock Bank: Brace for the first Regulated Cryptocurrency Bank