Predicting cryptocurrency trends is no child’s play! Even the most experienced analysts are never certain of their predictions.
Knowing in advance when the valuation of bitcoin, or of the various cryptocurrencies, goes up or down undoubtedly brings many advantages, but no one is obviously certain.
What might help, especially for less experienced users, is to know what to do when, for example, the value of bitcoin goes down or up.
In this article we discuss what aspects can affect the valuation of bitcoin, how to predict such a fluctuation, and Sentyment, the tool offered by Swaggy that provides the user with useful tips for wallet management.
Ups and downs: what affects bitcoin’s valuation?
The trend of bitcoin is not random.
In fact, there are many factors that influence its valuation. Here are some of the causes that determine the price of bitcoin:
- The available quantity of cryptocurrency
- The function of cryptocurrency
- The mechanisms of supply and demand
How many bitcoins are left?
The availability of cryptocurrencies is the factor that most influences their valuation.
Take bitcoin for example:
There are currently still 2 million minable bitcoins available.
Logically, the limited quantity will affect the price of the most popular cryptocurrency.
The identity of cryptocurrency is important
The notoriety of the cryptocurrency and its function can increase or decrease its value.
Again, taking bitcoin as an example, the fact that it was the first cryptocurrency in circulation, the most famous, the most widespread, meant that its value grew over time.
The global law of supply and demand
It is pointless to go into too much detail in this section.
Supply and demand processes govern any commodity, and cryptocurrencies are also part of this world
Predicting the future… Of cryptocurrencies.
Nobody has a crystal ball, that’s for sure.
Despite all the information we have, it is not possible to predict the future of bitcoin with certainty.
It is therefore good to steer clear of ‘GURUs’ who promise easy gains through unverified methods. The web is full of alleged cryptocurrency wizards, scholars, analysts, Nostradamus and rumours. Surely it would be good to rely on some cryptocurrency experts, even if in terms of costs we are talking about very expensive advice, which a beginner would certainly not be able to pay easily.
Yet studying and delving into cryptocurrencies is always a good decision. The latter can be an extra facility for taking your first steps into the world of cryptocurrencies.
Study, yes, is fundamental, but it is still not enough.
What we can know is what to do once bitcoin goes up or down. The best choice remains, in these terms, to rely on artificial intelligence. So let’s talk about Sentyment, the smart tool offered by Swaggy.
Sentyment: suggestions from the intelligent tool
Sentyment is an innovative integration created by Nexid Edge, an Italian company engaged in the Blockchain sector, and integrated since 2021, exclusively, into Swaggy.
But what is Sentyment for?
This service, thanks to artificial intelligence-based algorithms, studies the cryptocurrency market by providing an accurate, yet easy-to-understand analysis of possible trends to help you create a strategy to make the most of your Swaggy wallet.
Although Sentyment’s processes seem very complicated, the visualisation of this service is summarised and represented intuitively by the use of special colours:
RED: Analysis predicts a downward trend for cryptocurrencies;
YELLOW: Sentyment judges the market on hold;
GREEN: Now is the right time to buy cryptocurrencies like BTC and ETH.
Moreover, being an ‘intelligent tool’, any advice is given based on your previous behavior and the management of your crypto wallet.
This is a very important added value both for those who have recently opened a wallet and for those who know how it works but do not want to spend too much time on often extremely technical analyses.
The smartest move you can make is not to try to predict the trend of the crypto market, but to use tools like Sentyment to understand how to anticipate and act in times of market fluctuations.