Cryptocurrency trading has rapidly gained popularity in recent years, with countless individuals seeking to profit from the volatility of digital currencies. However, success in this highly competitive market requires more than just intuition or luck. This is where backtesting comes into play as a crucial factor for traders to consider. Backtesting involves using historical data to simulate trades and assess their profitability, allowing traders to evaluate their strategies before risking real capital.
By conducting thorough backtests, traders can identify the strengths and weaknesses of their trading approach, refine their strategies, and make informed decisions based on statistical evidence rather than emotions or speculation. Additionally, backtesting provides an opportunity to understand how a particular trading strategy would have performed under different conditions, such as during market crashes or bull runs. Ultimately, incorporating backtesting into one’s cryptocurrency trading routine not only enhances confidence in decision-making but also increases the likelihood of achieving consistent profits over time.
The US inflation data is in. While stocks initially recover significantly and attempt an initial rebound in the weak trading week, but then give up the gains again, cryptocurrencies are not very impressed. Nevertheless, the current data give hope. Although the Tagesschau calls the increased inflation rates surprising, it was precisely this slight increase that economists expected. They even expected the CPI to rise to 3.3%. In the end, it was only 3.2%. At the same time, core inflation fell to 4.7%. Thus, there is certainly hope for an easing of monetary policy in the near future, although a little time is likely to pass until then.
Which cryptocurrencies could you look at currently? Five coins that could be worth a look before buying:
1th Bitcoin (BTC)
The Bitcoin exchange rate remains the base investment in the digital currency market in the medium term and at the same time benefits from declining inflation. Admittedly, there is not yet a promising setup here in the short term from a technical point of view. Nevertheless, an easing of monetary policy in early 2024 should benefit bitcoin. If this is followed by a Bitcoin spot ETF and Bitcoin halving in April of the coming year, the ingredients for the next Bitcoin bull run seem conceivably explosive.
Currently, bitcoin is stuck in a narrow sideways range. The breakout is still a long time coming. Further setbacks could present opportunities.
2nd Wall Street Memes (WSM).
The $23 million milestone has been reached. The pre-sale of Wall Street Memes has been extremely successful and a new community-based meme coin is poised to impact the fun currency landscape. With a community of over one million followers, Wall Street Memes (WSM) is not just another little shitcoin, but a grown meme coin with a well thought-out concept. Based on WallStreet Bets and GameStop, the timeless idea behind WSM is to unite private investors to finally take on the financial elite. This idea also celebrates a growing number of crypto-Youtubers who believe Wall Street Memes (WSM) have potential while promoting virality.
3rd Shiba Inu (SHIB)
Shiba Inu is again in strong demand in the current market environment and is outperforming the broad market with a price gain of around 4.5% in the last 24 hours. Here, SHIB is directly below the prominent resistance level at the psychologically important price mark of $0.000010. Shibarium remains the price driver. There seems to be a lot of room for explosive upward movements here, if you look at comparable meme coin projects. These are often valued at a much higher multiple. 20% is then provided as liquidity, which in turn ensures smooth trading that could bring more volume to SHIBIE and favor a price increase
The market increasingly trusts SHIB to transform from a meme coin to a serious cryptocurrency. However, even still, a layer-2 for Ethereum probably remains not enough to justify the valuation in the long run.
After all, other L2s like Arbitrum or Optimism are currently more favorably valued. Still, the large community and burn should justify a slightly higher valuation. In the short term, SHIB remains exciting.
4th Shibie Coin (SHIBIE)
The new Shibie Coin Presale has now completed half of its presale. Over $284,000 has flowed into SHIBIE to date. The presale is targeting a hard cap of just $500,000. The presale will last about four more days, and an early sellout is conceivable at any time. With 60% of tokenomics reserved for the presale, SHIBIE will launch on the DEX with a market cap below $1 million. There seems to be a lot of room for explosive upward movements here, if you look at comparable meme coin projects. These are often valued at a much higher multiple. 20% is then provided as liquidity, which in turn ensures smooth trading that could bring more volume to SHIBIE and favor a price increase.
5th launchpad XYZ (LPX).
Web3, while promising, needs to evolve to attract more users. Currently, there are challenges with scalability, usability, and cost. Many users find the technology complex and not intuitive. Privacy concerns and unclear regulatory frameworks also create uncertainty. To ensure broad acceptance, these barriers must be overcome. The concept behind Launchpad XYZ aims to solve precisely these challenges and relies on an all-in-one platform for the Web3, on which users are provided with the necessary skills to exploit the lucrative advantages. In the presale of the native token LPX, the team has raised $1.25 million to date. As a seminal topic, Web3 seems tailor-made to create successful conditions for a public trading launch on LPX.