How beginners can earn money with cryptocurrency: 10 ways

Technical analysis of cryptocurrencies has long gone beyond charts. Financial strategies in the digital age require accurate and adaptable tools, able to identify patterns in a highly volatile environment. A superficial glance does not reveal the essentials. Only a systematic approach can extract signals and turn them into informed trading decisions.

Why apply technical analysis to cryptocurrencies?

Every price movement in the cryptocurrency market is shaped by a combination of factors, but not randomly. Technical analysis of cryptocurrencies helps build market logic based on past data, mathematical patterns and market psychology.

Platforms with millions of participants generate behavioural cycles. Indicators, levels and shapes form the language in which the market communicates its intentions. The aim of analysis is to identify entry and exit points with a high probability of profit. No fundamental approaches or external events are used. Only the chart, volumes and behaviour of participants.

Tools: how to structure technical analysis of cryptocurrencies

Each statistic is based on a combination of three main areas: levels, indicators and chart patterns. The segments reveal individual facets of price behaviour. Before moving on to specific strategies, it is important to form an analytical framework. This includes

1. Historical candlestick data (OHLC).
2. Market depth and trading volumes.
3. Time frame of analysis: M5 to 1W.
4. Asset volatility.
5. Correlations with indices, fiat or other tokens.

Levels and zones: graphical skeleton

No indicator is a substitute for a high-quality level marker. Technical analysis of cryptocurrencies uses support and resistance levels as the core to assess market reaction.

Working techniques:

1. Horizontal levels by extremes.
2. Mental levels: multiples of 1,000 (e.g. $20,000 for BTC).
3. Consolidation zones: sideways zones with volume accumulation.
4. Dynamic levels: moving averages as resistance/support zones.

Indicators: algorithms in action

A candlestick chart alone does not reveal the trend structure. Technical analysis of cryptocurrencies uses indicators as mathematical complements to the visual picture.

Key patterns:

1. Moving average (MA) – smoothes the chart, determines direction. Simple and exponential versions differ in reaction speed.
2. RSI (Relative Strength Index) – shows overbought/overold. Values above 70 and below 30 give reversal signals.
3. MACD (Moving Average Convergence Divergence) is a trend indicator based on moving averages. Intersections of the lines indicate a phase change in the market.
4. Bollinger Bands: measure volatility. Exits beyond the bands indicate a possible correction or momentum.
5. Volume – confirms movements. Higher volume on a breakout makes the signal more reliable.
6. Stochastic oscillator – estimates the probability of a reversal. Often works in conjunction with the RSI.
7. Ichimoku cloud – Japanese tool that shows trend, levels and signals all at once. Requires practice, but gives deep insight into the market.

Patterns – pure price behaviour

Candlestick and chart patterns in technical analysis of cryptocurrencies reveal behavioural patterns. Their effectiveness has been proven for decades in traditional and digital markets.

The main patterns are:

1. ‘Absorption’ – a reversal signal.
2. ‘Hammer’ and “Executioner” – indicate a change in sentiment.
3. ‘Doji’ – a signal of uncertainty.

Chart patterns:

1. ‘Head and Shoulders’ – a reversal signal.
2. ‘Flag’ and “Pennant” – trend continuation.
3. ‘Double Top/Bottom’ – confirmed reversal.

Psychology and behaviour: the basis of cycles

Technical analysis of cryptocurrencies is based on understanding the phases the crowd goes through: it is the psychology of the crowd that determines price movements. Each movement reflects a specific emotional state of the participants: from hope to panic.

The first phase is formed at the moment of accumulation. Experienced participants set underestimated levels, volumes grow weakly, the price moves sideways. Here the basis is formed for future growth, which the crowd does not yet perceive.

Then momentum ignites. Large orders push the price higher, the chart breaks through key levels. Interest in the asset grows and new entrants enter the market. At this stage, classic inertia manifests itself: growth generates demand, which triggers further growth.

At the peak of the cycle, the price enters the euphoria zone. The media publish optimistic headlines, talk shows are filled with ‘10 times’ predictions. New entrants enter easily, while volumes are already stagnant. Big traders lock in their profits. Reversal signals are ignored as emotions win out over logic.

Then liquidation begins. A sharp drop causes a shock, sellers rush to exit. Technical analysis of cryptocurrencies at this stage shows support breaks, candlesticks take an elongated shape with strong shadows. Panic peaks when the price breaks accumulation levels.

This is followed by the capitulation phase. Everyone leaves the asset, participants lose confidence. The chart shows a deep pullback with minimal volatility. It is at this point that the bottom is formed. This is where the most profitable positions are opened, against the mood of the crowd.

Consolidation completes the cycle. The market enters the sideways corridor, the big players accumulate volumes again. Everything repeats itself. With technical analysis of cryptocurrencies, you can follow this recurring scenario and use it to the benefit of your strategy.

Time frames and strategies: short-term vs. long-term

The holding period of a position affects the whole analysis algorithm. A short-term trader relies on momentum, while a long-term trader relies on structure. Technical analysis of cryptocurrencies shows different price behaviour at different time intervals. It is important to adapt the methodology to your own style.

Scalping involves working on minute charts. In the M1-M15 segments, price moves impulsively, with sharp shocks. Reaction speed is important here. Analysis is based on continuation, breakout and rebound patterns. Fast indicators (stochastics, VWAP) help detect pullbacks with minimal delay.

M30-H1 time frames are used for intraday trading. Intraday movement is observed in these ranges. Operating levels are based on daily highs and lows. Volumes and price behaviour at the opening of the session are taken into account. Technical analysis of cryptocurrencies at this level allows finding entry zones during the day and closing the position before the end of the day.

Swing trading requires observation of H4 and D1. Analysis includes leading figures, moving averages and accumulation volumes. A trader holds a position for several days and focuses on the changing market structure. Signals with confirmation are important here. Errors become more critical, so analysis requires more precision.

Position trading is based on a weekly chart (1W). The most important thing here is the trend. Tools: MA200, resistance support levels, head and shoulder figures, double bottom. Volumes indicate stages of accumulation or distribution. Technical analysis of cryptocurrencies on a high timeframe shows the general mood of the market and allows you to make long-term investment decisions.

Conclusion

Technical analysis of cryptocurrencies is not just about lines and charts. It is a layered system that combines psychology, mathematics and strategy. It is based on the logic of repetition, behavioural patterns and analysis of price-volume interaction. The deeper the analysis, the more reliable the input. Accuracy is achieved with practice and results with a systematic approach.

The financial system is undergoing rapid change and new technologies are becoming increasingly important. Decentralised finance, or DeFi, challenges established banking structures by offering an alternative to traditional methods of capital management. Investors, traders and ordinary users can now communicate directly with each other through smart contracts without an intermediary.

In this article, we explain in detail what DeFi is, how it is used in cryptocurrencies and discuss other aspects of the topic.

What is DeFi and why is it important?

DeFi: what is cryptocurrency? A system of financial instruments and services on the blockchain that does not involve intermediaries such as banks and brokers. The essence of the mechanism is to create open and accessible financial services for all, where any user can participate in the global market.

Definition of decentralised finance: short and clear

DeFi is a decentralised ecosystem of financial applications running on the blockchain. Unlike traditional finance, where control is concentrated in the hands of central authorities, DeFi offers transparency and autonomy. The definition can be boiled down to three main aspects:

1. Accessibility: Participation in DeFi requires no special permissions or verification. All you need is internet access and a cryptocurrency wallet.
2. Transparency: All transactions are recorded on the blockchain, making manipulation impossible.
3. Security: smart contracts replace middlemen, reducing the risk of human error.

How DeFi works: from smart contracts to apps

It is based on blockchain and smart contracts: automated programmes that execute the terms of a transaction without third-party intervention. Let’s look at the mechanism through a specific example.

Imagine you need to exchange ETH for another token. In a traditional system, an intermediary is needed to ensure the security of the transaction. In DeFi, this function is performed by an application based on smart contracts. One of the most popular exchange protocols is Uniswap. It allows users to trade tokens directly through a liquidity pool rather than through a traditional order.

This means that DeFi in cryptocurrencies enables people not only to trade assets, but also to make loans and invest without bank control. Protocols like Compound allow borrowers to earn interest on the deposited assets. Moreover, they can receive the money immediately if they provide collateral.

DeFi in simple terms: what is it in cryptocurrency?

Understanding decentralised finance is not as difficult as it seems. Imagine a world where financial services are available to all, without bank lines or bureaucracy.

DeFi for beginners: the first step to a new world

To get started, you need the following:

1. Create a wallet: the most popular are MetaMask, Trust Wallet and Coinbase Wallet.
2. Top up your balance: transfer ETH, for example, to work with apps.
3. Connect to a DeFi app: use swapping, lending or staking protocols.
4. Perform transactions: exchange assets, provide liquidity or apply for loans.

The important thing is to observe security and check smart contracts before you start working with them.

The benefits of DeFi: why the world is changing

Its benefits are becoming increasingly clear in the modern world, where flexibility and transparency in financial transactions are increasingly important.

Freedom, transparency and revenue: the main advantages of DeFi

1. Freedom: no intermediaries needed. Any user can conduct transactions directly through the blockchain.
2. Transparency: All transactions are recorded on the blockchain and can be verified by all network participants.
3. Income: DeFi offers new opportunities for passive income through staking, farming and providing liquidity.

For example, through the Aave platform, users can lend their assets and receive interest. Similarly, Uniswap allows users to earn swap fees by providing tokens to a liquidity pool.

The future of DeFi: where is the financial world headed?

It is important to stress that DeFi in cryptocurrencies is not just a technological trend, but a financial revolution. Integration of DeFi projects with traditional financial systems is expected to increase rapidly in the coming years. Banks and companies are already testing blockchain solutions to optimise processes, increase transparency and reduce costs. This suggests that decentralised technologies are about to move beyond the crypto community and become part of everyday life.

Integrating DeFi with the real world

One of the key trends is the implementation of DeFi in payment systems and retail services. Today, some startups are already offering payments for goods and services directly through the blockchain, without intermediaries. For example, the Flexa platform allows you to pay with cryptocurrency at thousands of shops, including major retail chains. In the future, we can expect decentralised technologies to be integrated into applications for online shopping, delivery and other services.

Major payment systems like Visa and Mastercard are already testing the possibilities of integrating blockchain for instant and low-cost transactions. We can therefore conclude that DeFi forms a bridge between traditional money and crypto-currencies.

Improve user interfaces

Despite the huge potential, many DeFi applications are still complex for the general public. One of the biggest challenges remains improving interfaces and user experience (UX). Examples of these improvements can already be seen on platforms such as Aave and Compound, which provide clear dashboards and step-by-step instructions for beginners.

DeFi regulation and security

As the popularity of decentralised finance grows, so does the need for legal regulation. The development of legal frameworks for user protection will be one of the key trends in the coming years. Governments around the world are already working on creating a regulatory framework for DeFi projects. For instance, the United States, the European Union and China are developing rules for smart contracts and blockchain technologies.

Legal measures are aimed at protecting investors from fraud, ensuring the security of their assets and reducing the risk of losing money. In the future, transparent and clear cryptocurrency laws will help attract large institutional investments to DeFi, accelerating mass adoption of the technology.

Conclusion

In short, in cryptocurrencies, DeFi is not just a buzzword, but a real tool to change the financial system. In a world where anyone can trade, borrow and make money without intermediaries, the possibilities are limitless. Decentralised finance puts you in control of your capital and creates the future of finance today.