Dogecoin, the cryptocurrency that started as a meme, has gained immense popularity recently.

While some investors believe in the long-term potential of dogecoin, others see it as a speculative investment bound to crash.

If you belong to the latter group, you might be interested in learning how to short dogecoin.

This article will explain what shorting means, how to short dogecoin, and the risks involved.

Understanding Shorting

Shorting is a trading strategy that allows investors to profit from a decline in an asset's value. In simpler terms, you borrow a certain amount of the asset and sell it at the current price.

Then, if the asset's price goes down, you buy it back at the lower price and return it to the lender, keeping the difference in price as profit.

Shorting is essentially the opposite of buying long, which involves purchasing an asset with the expectation that its value will increase.

Shorting or short-selling DogeCoin is placing yourself in a position to benefit from the drop in price of DogeCoin.

It means placing a bet on DogeCoin, especially when you don't have enough money to purchase it outright.

You then use your trading account to short the coin and sell it for a profit later. 

Reasons to Short Dogecoin

There could be several reasons why an investor might want to short Dogecoin. Some of the common reasons include the following:

• The belief that the price of dogecoin is overvalued and bound to crash

• Fear of a Bearish Market Trend

• Hedging against an existing dogecoin position

• Elon Musk keeps posting about it or manipulating Twitter to pump the token

Risks Involved in Shorting Dogecoin

Shorting is a risky trading strategy, and shorting dogecoin is no exception. The following are some of the risks involved:

• Unlimited losses: Unlike buying long, where your losses are limited to the amount you've invested, shorting has unlimited downside potential. If the price of dogecoin continues to rise, you could potentially lose more than what you've invested.

• Margin calls: When you short an asset, you're essentially borrowing it from a lender. If the price of the asset rises, the lender may ask you to deposit more funds as collateral to cover their potential losses.

• Short squeezes: In some cases, shorting can create a self-fulfilling prophecy. If enough investors short an asset, and the price starts to rise, they may need to buy back their short positions to minimize their losses. This, in turn, can create a buying frenzy that drives the price up even further.

How To Short DogeCoin

Several Crypto-exchange platforms allow traders to short cryptocurrency, and in this article, we look to highlight how to short cryptocurrency on two major platforms- Binance and PrimeXbt.

Binance

Step 1: Open an account

Your first step in shorting DogeCoin on this platform is to create an account on Binance. The platform has a verification process put in place to complete this process. 

Step 2: Buy Futures to short DogeCoin 

To short DogeCoin, you will need to purchase the USDT Tether stable coin for your futures contract. 

Type DOGE in the search bar icon, and you will find the DOGE/USDT Perpetual option, the exact option you wish to short.

Your USD account Is then converted to USDT, after which you transfer those funds into your USDT wallet. Upon doing this, you can return to the DOGE/USDT page and then click on the Sell/Short Button. Should you predict that Doge will go down, you must make use of the short Button. 

PrimeXbt

Step 1: Like in Binance, the first step is creating an account on the PrimeXbt platform. You can have your account created in no time by answering a few basic questions and undergoing a few confirmation procedures.

Step 2: This step involves you opening up the Trading Platform. Click on your account dashboard's "Margin" tab to do so, as this will ensure you see all the various charts and technical indicators. There are several options for you to go through before finally landing at the DOGE/USD market you are looking to short. You can either click the "Trade" button in the market review window or "Sell" in the left-hand corner of the chart for DOGE/USD, and both will open up the "New order" box.

Step 3: The last step is to decide just how much DogeCoin you are willing to short. In this step, you also get to decide if you want to do it with a market order or a pending price. After you have made up your mind, the last step is to click on "Sell," after which you tap the "Send order" button that helps execute the trade. 

Do you Need Leverage when Shorting DogeCoin?

Yes, but not too much. You have a 50x leverage opportunity on your principal, which means that should you have $150 to invest, you can invest on a margin of up to $7500.

It is advised that you don't use too much leverage as that can leave you with losses of up to thousands in U.S. dollars and can also leave you liquidated. 

Regardless of your proficiency in trading, you will need to decide wisely on whether to use marginal funds. An isolated position is advised to ensure you don't lose too much money in the case of a loss on your trade.

An isolated position means you will only lose the money you paid for that futures contract and nothing else. This position must be implemented before shorting cryptocurrencies to avoid monument losses.

Shorting DogeCoin Tips

Volatility is the order of the crypto world, but still, some assets are really volatile; DogeCoin is one of them. In lieu of that, shorting DogeCoin makes more sense than buying it to hold long-term.

This is the way to go for a coin with an unlimited supply and one that you wish to short In a period such as the current period of crypto adoption. A few tips like these ones will guide you on just how to short DogeCoin.

1. Your position size is very important: Before making any trade, you need to take cognizance of your position size, especially when shorting a volatile coin such as DogeCoin. No trade is worth risking too much on; shorting DogeCoin calls for calculated risks. 

2. Keep tabs on social media trends: An important factor with DogeCoin is Social media, so to be sure of when to short DogeCoin, you need to be updated on what's happening on Social media. So before taking up that trading position, ensure you are abreast of the latest trends on Twitter, Instagram, Reddit, and more.

3. Take profit: Profit is only realized when taken, so before rejoicing on that green you see on your trades, ensure you have taken it first. You need to understand that the market will sometimes bounce, so ensure you take profit on extended runs lower. There will always be another opportunity to re-enter and take up another position but for now, take that profit.

How to Analyze Dogecoin’s Price Movements

This coin has been driven mostly by hype, meaning that fundamental analysis alone won't provide you with the concise analysis you need.

DogeCoin has fed on hype so much so that even A random Tweet or sporadic mentions on Instagram can have the coin convulsing almost.

Knowing this, you realize that  Simple trend lines or moving averages are the way to go alongside the complement of basic support and resistance. 

Most times, when DogeCoin makes it to the top of the trend table, it is often because major Companies are willing to take it up as a means of payment.

In such events, you see the coin bring up short-term volatility or even increase its price for a short period. This is the time for you to strike while the iron is hot, as you can use these shorting opportunities once the hype has eased off significantly.

Conclusion

With DogeCoin, we have seen the wildest of swings right from the minute it came around, and while it has mostly been to the downside, we still expect more of such swings.

DogeCoin being highly sensitive to social media is a key point to note for whatever action you choose to take on it, especially shorting. 

DogeCoin has majorly depended on social media for its upward push, with tweets from people like Elon Musk and Mark Cuban being influential to that cause.

Unlike other conventional settings, institutional money doesn't move this market, opening up a possibility of significant price drops. If the short side of it attracts you, you need to know also about the long side.

The volatility of the crypto market means you need to be precise when predicting any price drop, so whenever you decide to short DogeCoin, apply the tips in this article to see that your short selling Of DogeCoin is a successful venture and not just one you choose to go headlong into just because everyone else is doing it. 

Every crypto-enthusiast loves staking. And Cardano staking is a dream come true for many.

Cardano is a Proof-of-Stake (PoS) blockchain platform that was created in 2015 by Charles Hoskinson, the co-founder of Ethereum (ETH), using evidence-based procedures and peer-reviewed research. 

By merging the latest technologies, Cardano provides high security and sustainability. Cardano has gained the nickname "Ethereum killer" possibly because it was founded by the Ethereum co-founder.

Cardano's native currency (ADA) is anticipated to rise as the platform is expected to fully deploy smart contracts.

Without further ado, let’s dive in. 

What is Cardano Staking?

Cardano staking is a well-known method of earning rewards for supporting network validation of blockchain transactions. 

These payments are provided in ADA. Staking aids the network's decentralization by distributing the consensus among thousands of validators, where computers check that transactions comply with Cardano’s specifications.

A stake is essentially a vote for that validator. The pool of ADA holders who stake a validator may number in the hundreds of thousands. Delegating is the process through which ADA holders assign their ADA to a pool of their choice.

The pool can collectively increase its staked ADA level, increasing everyone's yield. Higher staked pools are more likely to be picked to create a block and receive rewards.

The DPoS protocol known as Ouroboros helps to maintain decentralization in the Cardano blockchain. 

Epochs, which are fixed intervals of time that endure around five days, are how Ouroboros divides time. Then, it separates epochs into slots, each of which has a block. The consensus protocol chooses a stake pool at random for each slot.

However, higher-stakes pools have better odds, just as playing in a lottery pool has better odds than buying a single ticket. The winning stake pool receives a block reward by creating the block for that slot.

After deducting costs incurred to maintain the pool's operations, these rewards are distributed to the pool's delegators.

Cardano's staking mechanism offers a largely risk-free experience. Additionally, when staking to a pool, your ADA is always liquid, allowing you to spend or sell it whenever you like. Due to locked-staking, which is present on other blockchains like Ethereum, market risk is eliminated.

How Are Staking Rewards Distributed by ADA?

If you stake through an exchange, the exchange chooses the timing of your payouts. 

For instance, Uphold makes weekly rewards payments on Thursdays. Rewards on Uphold will be compounded to your Cardano staking account automatically. Staking at a validator pool, however, involves a very different procedure.

Cardano only distributes rewards once every epoch, a unit of time common throughout blockchains.

However, due to the method, Cardano employs to register stakes for each pool, you should plan on a three to four-epoch delay upon selecting a staking pool before you begin receiving rewards.

Rewards immediately compound when you stake to a validator pool, adding your rewards to your initial stake. Any more future ADA transfers made to the same wallet will also be automatically staked.

Cardano holders benefit from staking, which balances off the dilution from fresh issuance, with an inflation rate that rivals the yields from top-paying validators. 

Although this process will probably take decades before Cardano reaches its maximum circulating supply of 45 billion ADA, new issues (and rewards) gradually decrease over time.

How to Pick the Best Pool for Cardano Staking

It's critical to consider a Cardano staking pool's characteristics and select one that complements your preferences. 

• Make sure you are in charge of your stake first. Keep an eye out for exchanges, and it's better to avoid using them to store your cryptocurrency because they could fail. 

• Be detailed while assessing pool performance. Avoid the pool you delegated to if they don't show up for the slots they were scheduled for because your returns could take a huge impact. 

• Avoid unmaintained pools as well, as they frequently lose the chance to mint blocks, which can dramatically reduce the overall payoff for the stakes.

• To optimize your benefit, concentrate on staking pools with low costs. They also have a fixed fee rate, a fee deducted from the overall reward a pool generates during an epoch but not applied to each delegate.
  
  Following the deduction of the fixed fee rate, the remaining margin fees are paid to the pool operator to help defray operating expenses.

• Be cautious of cheap fee pools with 0% margin fees, and always remember to "think twice" when an offer seems too good to be true. After filling pools, lucrative offers that seem too good to be true usually increase their costs.

Best Cardano Staking Pools

Daedalus

The official desktop cryptocurrency wallet for Cardano was created by the Cardano team and is called Daedalus. The Cardano blockchain replica can be accessed by downloading the Daedalus wallet.

It is a complete node wallet, technically. By using a Daedalus staking pool to stake your coins, you are giving the network a vote, but your coins are still secure and yours to keep.

You receive a 5% return for staking, which is a good return compared to the interest rates in the country.

Daedalus, a full-node wallet, will require a lot of storage space because it contains the entire blockchain as well as the transaction history of the entire blockchain.

Binance

One of the largest exchanges in the world and a top choice for purchasing Cardano with fiat or cryptocurrency is Binance. 

On February 10, 2021, Binance launched Cardano staking on its cryptocurrency trading platform, offering payouts of up to 24.79% APY to long-term investors.

Since then, the expected staking payout has been lowered to 7.79% APY when locked in on the exchange for a fixed time of 60 days.

The service works on a first-come, first-served basis, and daily cryptocurrency interest payments are made. 

Due to the supported assets and other features, goods, and services provided on the platform without the need to transfer the coins to another wallet address, Binance is one of the top crypto-staking platforms.

Investors in Cardano can lock up their tokens for 60 days or 30 days, or a flexible option that allows them to keep their funds liquid and trade the coins on the Binance Exchange.

Even though the adjustable rate for staking Cardano on Binance is only 0.48% APY, it's still a fantastic choice for investors or traders who want to hold the asset on the trading platform while earning short-term incentives.

Starting a stake on Binance requires a minimum of 1 ADA token and a maximum of 500,000 ADA tokens.

Exodus

Exodus is another fantastic option if you're searching for a flexible wallet that allows you to stake many coins.

Given that it is secure and gives you control over your wallet, as opposed to Binance, it is one of the finest locations to stake Cardano. 

Exodus is accessible on both desktop and mobile platforms and supports more than 100 different tokens.

With Exodus, you stake your ADA address rather than tokens when you stake. This implies that you must wager your entire balance rather than choosing a certain amount to bet in the pool.

The advantage is that because your ADA tokens are not locked in during staking, you may still utilize them for routine transactions.

You get about 4.09% of the returns. It's also quite easy to stake your ADA; all you have to do is place one ADA token in your wallet and then click "Earn Rewards." 

Since Everstake is handling the process, you don't even need to select a staking pool to serve as Exodus' staking API provider.

Even if you don't already have any ADA, you can start collecting incentives simply by clicking a button to exchange it for ADA.

Notably, you must wait 20 days after completing the staking process before you begin receiving rewards. After 20 days, you will receive payment every 5 days.

ByBit

ByBit is a top-notch cryptocurrency trading platform for spot, derivatives, and options markets, and it also offers a rewards program that lets users stake tokens to receive staking rewards. 

Cardano staking is supported by ByBit on its platform, with both flexible and fixed options available. For ADA tokens kept in a ByBit wallet, both options offer competitive and guaranteed APYs. 

Investors can deposit Cardano into the Earn wallet and withdraw at any moment because the ADA staking earnings is 1.10% APY for a customizable term. For individuals who routinely trade ADA/USDT on the derivatives exchange, this is quite useful and appropriate. 

There is a defined staking time of 30 days for long-term investors who choose to lock up their ADA tokens. After the term, both the initial bet sum and the winnings may be withdrawn.

To earn prizes, a minimum of 60 ADA in Cardano must be kept on ByBit. Additionally, ByBit offers an APY Booster that can raise the returns for ADA staking. On the first day that rewards are calculated, the booster will start. This could raise the possible ADA staking payout over the market; nevertheless, there is a finite amount of APY Boosters available.

Cardanode

The platform advertises a 0% cost. Since Cardanode gains from its staking rewards and the required minimum fee of Cardano, it does not prioritize profits. The platform scans for nodes every 10 seconds and has 24-hour monitoring capabilities, so it never skips a block. 

Also, 100% uptime is reported. Additionally, with five relays connecting to 30 different nodes across three continents, it provides quick block propagation.

Kraken

Due to its reputation as one of the best cryptocurrency exchanges and ease of use for newbies, Kraken is one of the best places to stake Cardano.

You can purchase more than 50 tokens on this market and stake 10 tokens, including ADA. Kraken makes it simple to bet money, and the profits are substantial at 4-6%. As soon as you bet your money, you will start receiving prizes. Kraken has an advantage over wallets like Yoroi and Exodus where earning only begins after 20 days thanks to this feature.

Rewards will be given out on Mondays and Thursdays every two weeks. Comparing this to wallets has many advantages, but there are also drawbacks. Your tokens are kept on the cryptocurrency exchange rather than in your wallet.

Bitfinex

The most prominent feature of Bitfinex is its advanced trading platform for market speculation. 

Bitfinex, a top-tier exchange based on user volume, trading volume, and liquidity, serves as a global liquidity source for other platforms that use digital currencies.

Bitfinex is a reputable exchange for seasoned investors and traders, offering cutting-edge features like an advanced trading platform, OTC market, peer-to-peer (P2P) financing, margin trading, and staking.

Cardano is one of a total of ten digital currencies that may be staked on Bitfinex. The 4–5% range represents the ADA's expected annual staking reward and is subject to change. To start staking, customers need to add money to their Cardano wallet.

There are no minimum amounts or staking costs to use this service on Bitfinex, ensuring optimum usability and accessibility for everyone. 

It should be made clear how much of the ADA staking benefits would be taken by the exchange. Similar to other exchanges, staking incentives will be paid out weekly and sent directly to the user's Cardano wallet.

The platform allows for the use of funds at any moment; however, ADA staking rewards cannot be withdrawn or utilized for trading. In the middle of the week, a snapshot is taken to confirm the total number of coins, and prizes for staking are given out accordingly.

In conclusion, staking Cardano on Bitfinex is simple; all you have to do is leave the money on the platform to begin receiving weekly ADA rewards.

OKX

To represent its transition from a cryptocurrency exchange to a financial services platform with passive income prospects, OKEx changed its name to "OKX" in January 2022. On May 25, 2021, OKX launched Cardano staking services.

For crypto newbies, staking their Cardano tokens on OKX is easy, and in just a few clicks, they can start profiting passively from their staked Cardano.

Similar to Binance, OKX offers a variety of Cardano staking options, with rewards varying according to your lock period. The most attractive returns will be offered by OKX if you want to lock your ADA tokens for the long term.

Conclusion 

The staking pools mentioned above are some of the best in the industry, but they only represent the tip of the iceberg that has emerged from the continent of staking pools that has yet to be fully explored. 

Some may be interested in evaluating the pool's overall performance; others may concentrate on pool fees, yet others may be interested in communication and openness. 

In either case, you must conduct in-depth research on your chosen staking pool. The world of staking pools is vast – the strong ones can give you substantial rewards.

Have you ever wondered how people know when a crypto asset is in the ‘buy zone’ or the ‘sell zone?’ These people have taken time to study crypto charts, and they can recognize the patterns that serve as pointers in the market.

In predicting the price action of any crypto asset, you can carry out technical, fundamental, and sentimental analyses. 

To succeed in crypto trading, it is important that you learn how to read charts.

The charts will help you know the best time to enter the market and when to exit for profits or minimize losses.

Technical analysis is not only restricted to the crypto; you can also use it for stock and forex trading.

Charles Dow was the first person to use the term ‘technical analysis.’ He propounded a theory that is fundamental to your success with crypto charts.

Six Tenets of Dow’s Theory and its Application in Crypto

Understanding these tenets will guide you in making the right decisions when reading your crypto chart.

The theory comprises six parts, and each helps you understand a particular aspect of the market and the right interpretation of your crypto chart. The six parts include the following:

1. The market moves in three distinct ways

Dow's theory explains that the market exhibits three movements or trends. The main market movement can last for a year or even more. This particular movement can either be a bull market or a bear market.

Then we have the secondary movement or medium swings. This movement occurs within the main market movement. You can notice it when the price of assets starts rallying (going up) in a bear market or when prices crash in a bull market.

The third market movement is the tertiary movement or short swings. They often occur within a space of a week and are mostly ignored as noise in the market, which has no impact on the long term. 

2. There are three phases in the market.

As a crypto trader, you can find opportunities by examining multiple trends. For instance, you can buy a crypto coin at a cheap price during a bullish primary market movement by identifying bearish medium swings.

The first phase is the accumulation or distribution phase for a bull or bear market respectively. You will notice this phase when the market sentiment is generally negative during a bull market or positive in a bear market.

During this phase, smart and intelligent crypto traders know that a new market movement is incoming, and they can either increase their portfolio holding ahead of a rally or sell off their assets in anticipation of a market crash. 

The second phase is when everyone already know about the new trend. At this point, the public can either start amassing more coins take advantage of the bull run or sell off to cut their losses in a bear market. In this phase, the price can rise or fall in the blink of an eye.

The third phase is characterized by panic if the market is in decline or the feeling of abundance if the market is bullish.

Here, most of the public keeps speculating while the trend is ending. Crypto traders who understand what is happening will sell their holdings in anticipation of a market decline or buy more assets if they expect a market rally Although these trends don't always work as envisaged, investors pay attention to them before making any decisions on the market. 

3. The market responds to every news.

You can rest assured that price knows it all. Every new information is rapidly reflected in the price. The market takes everything into consideration, hope, fear, history, etc. This theory is akin to the Efficient Market Hypothesis (EMH), which states that the asset price reflects all available information and will trade at its fair value. 

4. All market indices must correlate

For a new market trend to be valid, all the market averages must confirm each other. For example, a market index can authenticate a new primary upward trend while another index confirms a primary downward trend. In that case, you should not take any of the confirmations to be valid.

5. Volume authenticate trends

According to Doe, trends in prices can be confirmed by volumes. The theory explains that if the price of an asset is moving toward the direction of its primary trend, the trading volume of the asset should increase. This is because the trading volume shows how much an asset has been traded over a particular period. Conversely, if there is a low trading volume, it shows that a trend is weak and vice versa. 

6. Every trend is valid until the reversal is clear

Always believe that a trend is still in action until you have seen proof of a reversal. Unfortunately, reversals in trends are often difficult to predict. For instance, many traders will confuse a reversal in a primary trend with a secondary trend. 

Understanding How Crypto Charts Work

To understand how crypto charts work, you need to know the three major sections of a crypto chart and what they are. They include the Candlesticks, the Indicators, and the Order Book.

Candlesticks

The candlesticks show you the price action of a crypto asset over a specified timeframe. There are green and red candlesticks, where green tells you that the price is on the rise while red indicates price decline. The candle wicks show the highest and lowest prices during each time frame. You view your crypto charts in timeframes, and the candlesticks represent each time frame. For example, if you set a time frame of 2 hours, the candlesticks will represent 2 hours of trading activity. 

The composition of the candlestick at every point in time has an underlying meaning in the market. For example, if the candlestick has a long wick at its top, it may imply that traders are taking profits, and a sell-off might be imminent. However, if the long wick is at the bottom of the candlestick, it may mean that as the price drops, more traders buy. Additionally, if a green candlestick has very short wicks with the body occupying almost all the space, it might imply that traders believe the market is getting ready for a bullish run. On the other hand, if the candlestick is red with short wicks and a body occupying almost all the space, then there is a strong bearish sentiment in the market.

Indicators

These indicators are mathematical formulas that you can use to identify the price movement of a crypto asset. Some of these notable indicators include the following:

The moving average

The moving average indicator helps you to generate an average price for any crypto asset in the market. When trading crypto charts in real-time, you can adjust the moving average to periods to provide you with useful signals. Some of the averages that most people use include 10, 20, 50, 100, and even 200-day periods. In addition, we have the simple moving average (SMA), weighted moving average (WMA), and exponential moving average (EMA). For example, if the 50-day SMA crosses below the 200-day SMA, it forms a death cross, suggesting a potential price crash. On the other hand, when the 50-day SMA crosses above the 200-day SMA, it forms a golden cross which suggests a potential price rise. 

On-balance Volume indicator (OVB)

This indicator strictly focuses on the trading volume of crypto assets. When looking at a live crypto chart, rising prices are often accompanied by a rising OBV, and a falling OBV accompanies falling prices. You can calculate the OBV depending on the relationship between the closing price of an asset and its closing price the day before. If the closing price is higher than the closing price the day before, the formula of OBV becomes (previous OBV + current day's volume). Additionally, when the asset's closing price is the same as its closing price the day before, OBV becomes (Previous OBV + 0) when the asset's closing price is below the previous day's closing price (OBV = Previous OBV-current day's volume). 

The moving average convergence divergence (MACD)

This is an indicator that helps you to identify buy or sell signals for an asset. It measures the difference between the 12-day and 26-day EMAs by creating the MACD line. When the 12-day EMA crosses above the 26-day EMA, the MACD line shows a buy signal, and it becomes a sell signal when the 12-day EMA crosses below the 26-day EMA. 

Relative strength index (RSI)

The RSI indicator will help you to know whether a crypto asset is being overbought or oversold. It is a line between two extremes, ranging from 0-100. The RSI uses a 14-day timeframe. When the value falls below 30, it indicates that the asset is overbought, while above 70 shows the asset is oversold. It is a sell signal when the asset is overbought and a buy signal when it is oversold. 

Bollinger bands

The Bollinger band is an indicator that will help you to identify short-term price movements of crypto assets. They are created using the 20-day moving average and adding and subtracting a standard deviation from the moving average. Bollinger bands function on the basis that periods of high volatility in the market are followed by periods of low volatility. When the bands separate during a period of high volatility, then a low-volatility trend is likely to commence. Similarly, when the Bollinger bands are close together, the asset may be set for a period of high volatility. 

The order book

The order book shows you the different prices at which crypto assets are being bought and sold. You can use the order book to identify support and resistance levels for a crypto asset.

Making Smart Trades with Crypto Charts

The crypto charts are there to guide you in the market, but you need to know how to make the best of it at all times. Here are some essential tips to guide you:

Always consider the overall market trend

When reading a crypto chart, ensure you look at the overall trend to know where the market is headed. If the overall trend is downward, you should expect the price to continue to crash and vice versa. 

Keenly observe the support and resistance levels

If the price of an asset falls below the support level, it is likely to continue falling until it hits another support level below. Similarly, when the price breaks a resistance, it will likely continue rising until it hits a higher resistance level. 

Always take note of patterns

While reading your crypto charts, you must take note of the patterns in the trend. For example, a double-bottom pattern indicates that the price is about to go up, while a head and shoulder pattern shows that price will likely crash. 

Avoid getting caught up in the details 

When you are reading a crypto chart, you need to understand that the big picture takes precedence over small details. So, always avoid getting caught up in these little details but be focused on the big picture. 

Ensure you have a plan

This is essential if you want to be profitable in your crypto trading. You need to always have your entry and exit points in the market. Additionally, it is also important to have stop-loss and take-profit levels. Having a plan will help you not to take an impulsive action that can liquidate your portfolio. 

Conclusion

Reading and understanding crypto charts demands that you practice consistently. With every trade you execute, you will gain more knowledge and understanding of the charts and help build your confidence as a crypto trader. 

Sources 

https://cointelegraph.com/trading-for-beginners/crypto-charts-101-how-to-read-cryptocurrency-charts

https://crypto.com/university/how-to-read-crypto-charts

https://blockgeeks.com/guides/how-to-read-crypto-charts/

https://www.elearnmarkets.com/blog/6-tenets-dow-theory/