Cryptocurrency is an area of instability that everyone knows, no matter what currency you trade. In the extremely volatile stage, when the transaction is not carried out according to your form, you are very likely to feel depressed. If you are out of luck, it is very easy for you to become more and more opinionated and attribute it inappropriately to your trading strategy - in fact, the price rise or fall is usually the main reason beyond your imagination.

Although there are uncertainties, there are still some countermeasures that can be used to successfully trade some tokens. ETH can be said to be the area where you are likely to succeed this year. Here are three reminders that are likely to be beneficial.

Grasp the specific factors that harm the price change of ETH

There are many methods to analyze and give the price of cryptocurrency. According to the entity model used and the weight of its special conditions, different types of price company valuation will be obtained.

However, inappropriate weight values can also lead to incorrect opinions. For example, cryptocurrency can generate a comprehensive good buying signal, but external factors can also lead to the collapse of the entire industry.

This is the situation of Ethereum's joint existence. There, the successful conversion to equity certificate reduced the consumption by 99.9%, but this is not really reflected in the price. In fact, bullish traders push prices to the ground.

The encryption market is also closely related to Bitcoin (BTC), which consists of many institutions and financial derivatives assets related to the annual interest rate and the traditional financial system. The correlation between ETH and Bitcoin at this stage is 0.9.

As of May 2021 and November 2021, the price of ETH rose rapidly. This is due to the publicity of large companies, such as the European investment financial institutions preparing to sell two-year bonds on the Ethereum blockchain. Visa also announced that the scheme is based on the Ethereum transaction in US Dollars (USDC).

The summary of the influencing factors harming the price of Ethereum is that the price of Ethereum will be mainly harmed by the change of Bitcoin price, the determination of annual interest rate, the organization of investment and the macroeconomic policy standards of blocking investment.

However, the most basic blockchain index value can be effectively biased towards mid-late value-added, which is likely to exceed one to three years. According to these indicators, Ethereum is a very strong blockchain with a high-speed development ecosystem.

Forecast analysis periodicity

Like other cryptocurrencies, ETH has performed well in some months and has been in a weak state in other months. He performed the worst in September, June and March, which means that this should be a good time to become a customer.

By comparison, he performed well in February, April and May. This is also when the trader announces the order to sell, while the buying and owning investors may only bypass these two months at the investment level (although other regulations should also be noted).

Although some people claim that some time of the day is more conducive to investment than the rest of the day, the research found that this is not the case, at least in Bitcoin. This also applies to the days of the week.

Even if Ethereum is traded on a specific day or for a specific period of time, only dynamic traders can properly consider these data and bear a large amount of basic transaction promotion costs. More practical, it means that in most cases, periodicity can be applied monthly or even quarterly.

The periodicity also needs to be remembered, because there is a clear monthly summary of the development trend.

Taking into account the average cost in US dollars

The dollar cost average method (DCA) is a popular method of trading Ethereum (and all other assets) encouraged by scientific research. It is also the technical method of Benjamin Graham's initial marketing promotion and use in the stock market.

DCA is a form of small investment in a certain period of time. For example, we can invest a special amount at the beginning of each month. This can ensure that you get all the highest and lowest points (at least on a monthly basis), smooth and undulating.

This is also the best way for newcomers to enter the market, because it does not require technical expertise or long-term capital investment. You don't need to analyze, nor do you need to learn training statistical model or relevance (although you can obviously do it on the side).

DCA can also be a good baseline for a large number of creative investments, providing a relatively stable basis. For example, you can closely combine it with periodicity and select three to four months when Ethereum has a relatively low price in history.

At the very least, DCA can help you prevent fluctuations in the cryptocurrency sales market, because the investment will be diversified over time. Persistent investment is as important as profit, which is often ignored in an area that is often replaced by hot spots and profit.

Many key points to know

The upcoming Shanghai Ethereum update in March will allow users to cancel the mortgaged ETH. By the end of January, the use value of ETH has exceeded $20 billion. However, it is not clear whether investors will take advantage of this opportunity (which will be bullish), or whether they will hold shares of ETH to be raised (which will rise).

Given the basic indicators of blockchain - detailed address of activity, bifurcation, role update, diversity of connection points, speed, etc. - are often not included in the price in a short time. For example, the combination of Ethereum has reduced the consumption by 99.9%, but it has no harm to the price and is covered by a broader range of macro factors.

But for a long time, this is undoubtedly an effective indicator value. What we do to improve the Ethereum blockchain and ecosystem will ultimately be reflected in the price.

In this respect, due to recent independent innovation, Ethereum is the best investment opportunity at the end of 2023 and even in 2024.

In many ways, this is also the ultimate representative of careful investors.