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What affects crypto prices?

The cryptocurrency market is highly volatile. It was first established in 2009 with the invention of bitcoin, but the world has already witnessed quite a few large spikes and plunges of various digital currencies. It may be bad news for cryptocurrency investors, whose goal is to build up profit on increasing prices, but if you trade cryptocurrency with CFDs, it’s a land of potential opportunities. In this article, we’ll explore the main factors driving crypto prices up and down and examine the Bitcoin case study that made headlines at some point. <h2>The main drivers of the cryptocurrency market</h2> In terms of factors affecting price movements, the crypto market is no different than any other financial market as it depends on cryptocurrency supply and demand. In some cases, it's quite straightforward. For example, one of the reasons Bitcoin is so popular is that its circulating supply is limited to 21 million coins. This limit cannot be changed because it has been encoded into it upon its creation. It means that just like any other scarce asset with demand exceeding supply, Bitcoin is supposed to grow in value, and makes a volatile alternative to holding ever deprecating fiat currency.   However, when the first cryptocurrency dropped from an all-time high of nearly USD 70,000 to a little over USD 16,000 in just a year, it became clear that  cryptocurrencies are still a very speculative asset class and demand for it is not as stable as that for gold, for example.    Here are the main factors that play a role in the price formation of cryptocurrencies: <img alt="" src="~/getmedia/7ba7c6f7-7451-470a-9a00-d76618203a86/what-affects-crypto-prices_1.png?width=550&height=295" /> <h3>Stock market</h3> It may not seem intuitive, but when the stock market goes down, so does crypto. The explanation is quite simple – people steer clear of risky instruments like cryptocurrencies when there’s a market downturn and buy safe-haven instruments like gold, which drives crypto prices down. <h3>Regulations</h3> Any regulation that can be perceived as strengthening crypto's security and trust usually has an almost immediate positive effect on its prices. On the other hand, any negative news, such as new policies regulating cryptocurrency or crypto bans in some countries, brings its prices down. <h3>Social media</h3> The social media hype around some cryptocurrencies has proven to be very influential on their prices on multiple occasions. Elon Musk's tweets alone have caused quite a few upward and downward movements. <h3>Security concerns and crypto collapses</h3> Security breaches and the collapses of the cryptocurrency exchanges like FTX have a strong negative effect on the entire crypto market. Many people start panic selling their crypto assets, driving the prices down and creating a lot of trading opportunities for CFD traders who are looking to speculate on the price movements of cryptocurrencies. <h2>How the drivers of cryptocurrency prices work</h2> All the factors we've discussed above can be very influential on their own, but usually, it's a combination of several of them that causes significant moves. Let's see how it works using Bitcoin as an example. <h3>How did Bitcoin reach the all-time high?</h3> In a series of events in 2021, Bitcoin made headlines reaching an all-time high of nearly USD 70,000. Here is a timeline of events and factors that played a major role in it: March, 2021 As 2021 has been marked by the ongoing COVID-19 pandemic, the US government released the third and largest stimulus check to support the economy and reduce the financial strain on consumers and businesses. People pile into Bitcoin as a hedge against inflation, out of boredom, and as they can’t spend their money on holiday trips and clothes as usual. July, 2021 After some back-and-forth contemplation on his decision, Elon Musk announced that Tesla will likely start accepting payments in Bitcoin after all. September, 2021 El Salvador became the first country in the world to use Bitcoin as a legal tender, requiring all businesses to accept it as a form of payment. October, 2021 The first Bitcoin exchange-traded fund, ProShares Bitcoin Strategy ETF, was approved and launched in the US. November, 2021 Bitcoin developers released Taproot – the largest system upgrade in four years, designed to expand its functionality and decrease transaction fees. All in all, US traders were left with spare money in their hands and a lot of indicators suggesting Bitcoin’s positive outlook. As the capital invested in this promising crypto coin grew, attracting investors from other countries across the world, its price reached an impressive USD 67,566.83. <h2>How did Bitcoin fall from its all-time high?</h2> Inspired by its quick rise, some analytics predicted Bitcoin’s rally to continue. However, the end of 2021 brought a grim end to it. Here is the chronology of the main factors and events that influenced Bitcoin’s decline: November, 2021 Crippled by the pandemic, economies have reported the fastest inflation surge since 1982. December, 2021 The US intelligence released reports about Russia’s military offensive against Ukraine. January, 2022 Russia's central bank proposed to ban the use and mining of cryptocurrencies, following the example of eight other countries, including China, that have already imposed a full crypto ban. February, 2022 Russia launched a full-scale invasion of Ukraine, throwing global stock market into turmoil. March, 2022 Six months after El Salvador's Bitcoin adoption, reports revealed that cryptocurrency usage in the country remained very low, and the plan was likely to fail. Second quarter Concerns about the high energy consumption required for Bitcoin mining and its negative environmental effects increased and intensified. End of the second quarter Tesla sold 75% of its Bitcoin. As a result of these events, the world was left with a crashing stock market, a very pessimistic outlook on its future development and several indicators suggesting that crypto was not doing well.  Cryptocurrency holders started turning towards safer investment options and selling their volatile and risky Bitcoin, driving its price down to a mark below USD 20,000. Today Bitcoin’s future remains unclear, with some analysts being very optimistic and some not expecting much. However, the number of trading opportunities these bull and bear runs presented for CFD traders is beyond imaginable. It's worth noting that most cryptocurrencies usually experience a domino effect, whether their prices rise or fall. Like stock indices belonging to the same industry, the price movements of different cryptocurrencies are often correlated. In the wake of Bitcoin's rise, many other digital coins also went up, and its crash caused their consecutive crash. That's why when looking for a trading opportunity on a certain cryptocurrency, it's worth checking a few others, as they may have potential too. <h2>Market sentiment</h2> All the main factors influencing cryptocurrency pricing have something in common – market sentiment. Digital coins are purely speculative and don't have an underlying asset to determine cryptocurrency values. For stocks, for example, it's a company's performance; for commodities, it's actual physical assets. That's why besides actual events influencing crypto prices, there is always an element of public perception of them. One good example of this influence is Dogecoin. Created as a sarcastic meme coin, this cryptocurrency gained over 600% in value, followed by a large drop, just because of the hype created by Elon Musk and other influential figures on social media. These are just a few examples that may explain what’s behind the highly volatile cryptocurrency market. Any hands-on trader can probably name a few more factors, but for new traders, it is not a bad idea to stick to basics at the beginning of their crypto journey. Practising your skills on a <a href="https://portal.thinkmarkets.com/account/individual/demo">demo account</a> can also help improve your knowledge.

4 min readBeginners

TradingView

How to connect your ThinkTrader account to TradingView

It’s now possible to connect your ThinkTrader account to TradingView. This integration means you can now trade directly on the powerful TradingView platform and access a wide range of fundamental and technical analysis tools. Trading on TradingView also means you can take advantage of its social networking feature, which allows you to connect and share trading ideas with other traders from around the globe. If you’re ready to start trading on TradingView, read on to learn how to connect your ThinkTrader account to TradingView in just a few steps. <h3 paraeid="{7b925429-e406-4966-9246-cb66f559cf90}{21}" paraid="991405710">Step 1  </h3> Create an account  Sign up for a ThinkTrader account if you don’t have one already. <img alt="" src="/getmedia/dd7a589f-05d9-4462-9de1-7b417a6f1350/Step-1_1.png" /> <img alt="" src="/getmedia/b12597cf-e4e3-4fe2-b027-d991f56522bd/Step-1-3.png" /> <h3 paraeid="{7b925429-e406-4966-9246-cb66f559cf90}{64}" paraid="1746130617"> Step 2  </h3> Go to TradingView Once you have a ThinkTrader account, go to TradingView and log in or create an account if you don’t already have one. Once you are logged in, visit tradingview.com/broker/ThinkMarkets. <img alt="" src="/getmedia/264bda80-4e80-4faa-832f-34e6c68fc504/Step-2.png" /> <img alt="" src="/getmedia/5171c435-1f61-4f4f-a5ea-875d69d3d973/ThinkMarkets-Account.png" /> <h3 paraeid="{7b925429-e406-4966-9246-cb66f559cf90}{126}" paraid="1964879093">Step 3  </h3> Connect your ThinkTrader account  After you land on the ThinkMarkets broker profile, click the ‘Trade’ button. A pop-up screen will appear where you can enter your ThinkTrader account credentials and log in. <img alt="" src="/getmedia/4a997935-1951-4979-acdd-543e6cb30570/Screenshot-2.png" /> <img alt="" src="/getmedia/850c4b24-2986-4ac3-906d-cf082e865f19/Screenshot-3.png" /> <h3 paraeid="{7b925429-e406-4966-9246-cb66f559cf90}{138}" paraid="33415286"> Step 4</h3> Begin trading After successfully connecting your ThinkTrader account to TradingView, you can start trading. To select the instrument you want to trade, click on the symbol box in the top left corner. This will allow you to search for instruments that ThinkMarkets offers. Once you select the instrument, its respective trading chart will appear, and you can then open a buy or sell position. <img alt="" src="/getmedia/5dbd62b7-e4c5-4a96-b841-1e9930979eb2/Screenshot-4.png" />   Would you like to view a step-by-step video on how to connect to TradingView? Click <a href="https://www.youtube.com/watch?v=KG79e02n4co&feature=youtu.be" target="_blank">here</a> to watch it now.

0 min readAll

TradingView

How to use TradingView’s charts

TradingView is a powerful platform with many fundamental and technical analysis tools and features that users can utilise when trading. One of its standout features is its advanced charting capabilities. In this guide, we will cover how to use the platform’s charts to gain deeper market insight and improve your analysis.   <h2 paraeid="{eb249f3e-0f52-4f4a-bf1f-41632d5469e2}{74}" paraid="1125590744">What is TradingView?  </h2> TradingView is a charting platform and social network used by 60M+ traders around the globe. It provides powerful indicators, drawing tools, and live data across various markets such as forex, indices, commodities, and more, making it the perfect place to analyse global markets and spot trading opportunities.   Outside of these features, it’s also a social network with a large global community of traders who can share their ideas and strategies – creating an ideal environment for traders looking to connect and learn from each other.   <h2 paraeid="{eb249f3e-0f52-4f4a-bf1f-41632d5469e2}{92}" paraid="1474938967">What can I trade on TradingView?  </h2> When you connect your ThinkMarkets ThinkTrader account to TradingView, you can trade all of ThinkMarkets' 4,000+ global instruments across forex, indices, commodities, stocks, cryptocurrencies, ETFs, and futures. With access to such a wide range of markets, you have the complete freedom and ability to create a portfolio that is fully in sync with your trading preferences and risk appetite.   <h2 paraeid="{eb249f3e-0f52-4f4a-bf1f-41632d5469e2}{104}" paraid="1502149578">How to use Trading Charts on TradingView  </h2> TradingView's charts are highly customisable and come with hundreds of built-in indicators and strategies, drawing tools, and tools for traders to employ. Let's take a closer look at how the charts work and how you can utilise them to analyse the markets effectively.   <ol role="list" start="1"> <li aria-setsize="-1" data-aria-level="1" data-aria-posinset="1" data-font="Calibri" data-leveltext="%1." data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="1" role="listitem"> Select the instrument you’re interested in </li> </ol> Navigate to the symbol search function and find the instrument you want to trade from the list. Once selected, the price chart for that instrument will appear. <img alt="" src="/getmedia/57203768-7f56-4e2e-a27e-68dc1c734019/Image-1.png" /> <img alt="" src="/getmedia/1e4b1f0f-1950-4365-aef1-91833d9f6ca8/Image-2.png" />   <ol role="list" start="2"> <li aria-setsize="-1" data-aria-level="2" data-aria-posinset="2" data-font="Calibri" data-leveltext="%2." data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="2" role="listitem"> Compare different instruments </li> </ol> Use the comparison tool to compare the price action of two or more different symbols simultaneously. This tool is ideal for helping you spot market trends and potential trading opportunities. <img alt="" src="/getmedia/b983f83f-c973-4a4d-8a14-8f4e0d8e87c5/Image-3.png" /> <img alt="" src="/getmedia/3fbe32d4-01ed-4ad0-ac39-4df21c5824f0/Image-4.png" />   <ol role="list" start="3"> <li aria-setsize="-1" data-aria-level="3" data-aria-posinset="3" data-font="Calibri" data-leveltext="%2." data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="3" role="listitem"> Choose a timeframe </li> </ol> Pick from a wide range of time frames, ranging from one second to one year. This allows you to find the ideal time frame to match your trading strategy and identify emerging trends. <img alt="" src="/getmedia/4469c841-9e7d-4657-b7c5-3098c331a2fb/Image-5_1.png" /> <img alt="" src="/getmedia/26f68fba-f80b-49fa-8bdf-6a02ff9c20cf/Image-6_1.png" />   <ol role="list" start="4"> <li aria-setsize="-1" data-aria-level="4" data-aria-posinset="4" data-font="Calibri" data-leveltext="%2." data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="4" role="listitem"> Choose a chart type </li> </ol> Use the candles feature to select the chart type you wish to use. TradingView has many charts, including candlestick, bars, baseline, Heikin Ashi, Renko, and more. This wide selection ensures you’ll find a chart type that meets your trading preferences and helps you spot trading opportunities. <img alt="" src="/getmedia/9a4b3e51-991e-40d6-8a19-bbdaafb18f09/Image-5.png" /> <img alt="" src="/getmedia/3593e78e-7fda-4c94-9715-6b9ad0f2686d/Image-6.png" />   <ol role="list" start="5"> <li aria-setsize="-1" data-aria-level="5" data-aria-posinset="5" data-font="Calibri" data-leveltext="%2." data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="5" role="listitem"> Access TradingView’s indicators </li> </ol> The indicators feature allows you to access 400+ in-built indicators, including Bollinger Bands, Relative Strength Index (RSI), Ichimoku Cloud, moving averages, and many more. TradingView's indicators are perfect for helping you identify market signs and trends. <img alt="" src="/getmedia/8ec8ea34-605b-4b00-b4ee-cd324805977a/Image-7.png" /> <img alt="" src="/getmedia/9b09d144-7f5a-4883-ac89-9379322998a3/Image-8.png" />   <ol role="list" start="6"> <li aria-setsize="-1" data-aria-level="6" data-aria-posinset="6" data-font="Calibri" data-leveltext="%2." data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="6" role="listitem"> Save indicator templates </li> </ol> You can also access indicator templates, which allow you to group several indicators together into a single package and apply them to any trading chart. There are six pre-enabled templates to choose from, along with other templates created by traders on the platform. <img alt="" src="/getmedia/35f4b26e-b0a3-432e-a10c-c67685ce29a5/Image-9.png" /> <img alt="" src="/getmedia/7d9e02a9-2de9-4187-bef9-3a9d47a6bb0d/Image-10.png" />   <ol role="list" start="7"> <li aria-setsize="-1" data-aria-level="7" data-aria-posinset="7" data-font="Calibri" data-leveltext="%2." data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="7" role="listitem"> Create alerts </li> </ol> Get notified when an instrument you're interested in reaches a specified price level with price alerts. This is useful for those who don't want to monitor the charts constantly and wish to be notified of any potential trading opportunities. <img alt="" src="/getmedia/fe99f38a-084f-46c2-a556-ec25450fcfae/Image-11.png" /> <img alt="" src="/getmedia/c81825de-dfdb-4487-bef9-3e52bd484c76/Image-12.png" />   <ol role="list" start="8"> <li aria-setsize="-1" data-aria-level="8" data-aria-posinset="8" data-font="Calibri" data-leveltext="%2." data-list-defn-props="{"335552541":0,"335559685":720,"335559991":360,"469769242":[65533,0],"469777803":"left","469777804":"%1.","469777815":"hybridMultilevel"}" data-listid="8" role="listitem"> Backtest with Replay </li> </ol> Use the Bar Replay tool you to backtest your strategies on historical data. This is ideal for practising your trading skills without needing to risk your own capital. <img alt="" src="/getmedia/f8d57a3e-81cb-4b53-af8d-3a968b4847bd/Image-13_1.png" /> <img alt="" src="/getmedia/e3237c68-9cb1-41c3-9db5-b49ff05a0767/Image-14.png" />   <h2 paraeid="{eb249f3e-0f52-4f4a-bf1f-41632d5469e2}{74}" paraid="1125590744">Connect your account to TradingView today</h2>   With its powerful charting capabilities, TradingView is great for analysing the markets and identifying trading opportunities. When combined with ThinkMarkets' superior product offering, conditions, and support, it has the power to elevate your trading to new heights. To learn more about connecting your ThinkMarkets account to TradingView, click <a href="~/en/trading-view-thinktrader/">here</a>.

4 min readBeginners

TradingView

What is TradingView? A beginner’s guide

<h2>What is TradingView? A beginner’s guide</h2> TradingView is one of the most popular charting platforms, used by 60 million traders worldwide. But why is the platform so popular among traders, and can it help you improve your trading? In this article, we'll deep dive into the TradingView platform, exploring its rise in popularity, how it works, and the advanced tools and features it offers. <h2>Introduction to TradingView</h2> TradingView is a charting platform that enables traders and investors to analyse the world’s financial markets. The platform started with a vision of creating a space that helps traders from around the world better understand and analyse financial markets. Over the years, TradingView has evolved from a charting tool to an all-in-one platform where traders can chat, analyse and trade global markets. TradingView is widely known for its range of powerful technical analysis tools, customisable indicators, and drawing tools, but another major reason for its appeal is its social networking feature. This feature enables users to share trading ideas, connect with fellow traders, and follow market experts. This community-driven approach is largely why the platform has exploded in popularity. <h2>Key Features of TradingView</h2> TradingView is home to many powerful tools and features that can help you make more informed trading decisions. Let’s take a closer look at what they are and how they can help you. <h2>Customisable charts</h2> With TradingView, you can set up your charts to perfectly match your needs. Adjust appearance settings, choose from a range of chart types, and set scales to quickly identify price changes. You can also annotate your charts, with the ability to add drawings and indicators to enhance your analysis. Best of all, you can save your chart preferences, so no matter the instrument you're analysing, your charts remain the way you like them. <h2>Powerful tools</h2> Access a powerful range of technical indicators to help you analyse market data and make more informed trading decisions, including:   <ul> <li>20+ chart types such as candlestick, line, bar charts, and more</li> <li>400+ built-in indicators such as Bollinger Bands, MACD, RSI, and more</li> <li>110+ drawing tools such as trend lines, Gann and Fibonacci, geometric shapes and more</li> </ul> You can also create your own trading tools and custom indicators with TradingView’s programming language, Pine scriptTM. Whether you’re creating scripts for personal use or sharing them with the wider TradingView community, they can be a great way to improve your trading experience. <h2>Real-time market data</h2> View live and historical price data across a wide range of markets, including forex, indices, commodities, cryptocurrencies, and more. TradingView sources the highest-quality data to ensure that your trading decisions are based upon the most accurate and reliable information available. <h2>Live alerts</h2> Stay informed on every market move with customisable alerts. Set alerts that trigger when there’s price movement on your favourite instruments, enabling you to seize opportunities quickly. Receive notifications via email, mobile, or desktop, ensuring you never miss a move, even when you’re on the go. <h2>Global community</h2> Access the world's biggest social network for traders and connect with 60 million global users. Share your trades, strategies, and ideas with a global community. It's the perfect platform to learn from other experienced traders or share your own trading expertise with the world. <h2>Why Use TradingView with a ThinkMarkets Account</h2> One of TradingView’s standout features is that it allows users to connect their trading accounts from supported brokers directly to the TradingView platform. This means you can connect a ThinkMarkets live account to TradingView, allowing you to enjoy TradingView’s advanced charting and analysis tools combined with ThinkMarkets’ industry-leading trading conditions. By connecting your ThinkMarkets account to TradingView, you can trade 4,000+ global instruments with tight spreads from 0.4 pips, fast execution, no dealing desk intervention, and more. <h2>How to connect a ThinkMarkets account to TradingView</h2> Ready to sign up? Connecting your ThinkMarkets account to TradingView is simple and only takes a few steps.   <table aria-rowcount="1" border="1" data-tablelook="1184" data-tablestyle="MsoNormalTable"> <tbody> <tr aria-rowindex="1" role="row"> <td data-celllook="4369" role="rowheader"> Step 1   <a href="https://portal.thinkmarkets.com/account/individual" rel="noreferrer noopener" target="_blank">Sign up</a> for a ThinkMarkets trading account   </td> <td data-celllook="4369" role="columnheader"> Step 2   Create or log in to your TradingView account   </td> <td data-celllook="4369" role="columnheader"> Step 3   Visit our <a href="https://www.tradingview.com/broker/ThinkMarkets/" rel="noreferrer noopener" target="_blank">TradingView broker profile</a> and click ‘Trade’   </td> <td data-celllook="4369" role="columnheader"> Step 4   Connect your ThinkMarkets account to TradingView   </td> <td data-celllook="4369" role="columnheader"> Step 5   Begin trading directly on the TradingView platform  </td> </tr> </tbody> </table>   <h2>Final thoughts</h2> TradingView is one of the most powerful charting platforms, which is why it’s used by 60 million traders. Whether you’re a new or experienced trader, TradingView can help you improve your analysis, develop more effective strategies, and provide you with access to a global community of traders. By connecting your ThinkMarkets account to TradingView, you can enjoy a superior trading experience. Sign up for an account today and gain access to 4,000+ global instruments with exceptional trading conditions. <h2>FAQs</h2> What can I do with TradingView? TradingView allows you to analyse global markets with its advanced and extensive range of technical analysis tools, customisable charts, and real-time pricing data. You can also share your ideas, trades, and strategies with traders worldwide. It’s the perfect platform for those looking to elevate their trading while connecting with a diverse and global community.   Is TradingView free to use? TradingView offers a free membership called ‘Basic’, allowing anyone to take advantage of its essential features. For those seeking more advanced features and tools along with an ad-free experience, a paid plan may be more suitable. To learn more about the paid plans TradingView offers, <a href="https://www.tradingview.com/pricing/" rel="noreferrer noopener" target="_blank">click here</a>.   Is TradingView suitable for beginners? Yes, TradingView is suitable for beginner traders. With its simple and intuitive interface, user-friendly charting tools, and supportive community, it is an excellent platform for helping beginners improve their trading skills.   What markets can I trade on TradingView? You can trade 4,000+ financial instruments across forex, indices, stocks, commodities, cryptocurrencies, ETFs, and futures when you connect your ThinkMarkets live account to TradingView.   Is there a fee for connecting a ThinkMarkets account with TradingView? It’s free to connect your ThinkMarkets account to TradingView.

4 min readBeginners