If you are like a lot of crypto-addicts, the first thing you do when you wake up is probably look at your phone and see what your portfolio is doing. “Am i up or down?”. Obviously you can’t be watching the markets all night but you can catch up on the important things you missed by reading the news in the morning.
This is an important ritual to start doing if you are trading in the shorter time periods as you can take advantage and implement risk management into your portfolio based around the current sentiment. So where do you start with your catch up?
First you need to look at the overall market cap and compare it to yesterdays as shown below.
Is it up or down? You can use a website such as coinmarketcap.com and particularly focus on Bitcoins market cap at the top and the overall market cap at the bottom of the page. The reason we follow bitcoins markets cap is decribed in this article.
So now we know if the overall market cap has increased or decreased? But by what magnitude. If its quite large then chances are that the sentiment has changed, but can’t be 100% certain just by looking at the market cap, it only gives a vauge indication that something is happening. So in our next step we need to find out why it has moved. News sites such as ForexLive.com and Cryptopanic.com can help us.
Cryptopanic.com scans other news sites and filters them by importance. Very handy tool, as it means you don’t have to have 10 different sources to find all your news.
Above is a picture of Cryptopanic.com. To filter the big news move your curser to the menu as shown and switch to important. This will only show the news which is likely to impact the market the most, articles such as government regulation, bank recognition, new deals and anything which can change the fundamental outlook of cryptocurrencies. It is wise to read through these articles to get an understanding of what is going on. If there is any jargon you dont understand, then look it up on Google. Over time you will be able to scan through the news quicker.
The next website to look at is ForexLive.com.
This website is made up of a team of veteran analysts which each take a shift during the global Forex sessions. They do a great job at explaining things simply. Although they are mainly focused on the foreign-exchange markets, they also do updates on the crypto market news as well. ForexLive usually only releases crypto currency news which related the market as whole, in real-time from big financial news sources such as Reuters and Bloomberg. They also do summary posts with some solid technical analysis.
So once you have read some articles from these sources hopefully you have gauged the overall market sentiment. So you can start planning some strategies for trading particularily for the short term.
For some strategy idea check out the strategy articles.
Next we are going to look at some more localized sentiment, that is rather than looking at the cryto market as a whole, we are going to look at the sentiment for a specific crypto currency.