The crypto market is a dynamic and volatile market, and to those active traders, it is important to know the dynamics of the market. Whereas the basic analysis can tell you what a project is, technical and more specifically, the analysis of crypto chart patterns can tell you where the market is likely to move. Patterns of charts are patterns that are observed on price charts and reflect the psychology of the traders as a whole, which gives visual indications about the potential price movement. Consider them to be the language of the market itself; mastering how to read them is a key to a massive advantage in a transient world. Through understanding these repetitive forms, you are better placed to make more prudent decisions when to sell, establish or just maintain a position.

Learning the Fundamentals of crypto chart patterns

Crypto chart patterns are of two main types; continuation and reversal patterns. Continuation patterns imply that the pattern of trend should continue with a short rest or consolidation. Such typical ones are Bull Flag, Bear Flag, and Ascending or Descending Triangles. An example of this is a Bull Flag, which is a short downward sloping channel formed following a steep rise of the price, and is a good indication that the asset will keep on the upward trend.

Conversely, reversal patterns indicate that there is a possibility of the movement of the current lifestyle. These play a vital role in determining the turning points in the market. The most commonly known reversal patterns are the Head and Shoulders, Double Top and Double Bottom.

A Letter to a Strategic Investor

In a market where things change fast, not by accident, but through thorough research and the thorough knowledge of the technology behind it, it is the sustained success. Do not invest in any digital asset without first going through the headlines and social media buzz to find something deeper. Review the whitepaper of the project to learn about the vision and technical background. Research about the background and past achievements of the team. Think about the health of its community, an active and engaged base of users is a strong indicator of the long-lasting sustainability of a project. It is worth remembering that the digital asset space presents immense opportunities, however, it needs a critical eye. With a sharp mentality and careful due diligence, you are assured of maneuvering your way in the market and making sound judgments that can suit your financial objective.

The Controversial Question: do crypto gains have tax?

Although the art of studying the crypto chart patterns is a key to successful trading, it is half a full day. A full trading plan should also consider financial requirements, especially, to answer the question, are crypto gains taxed? The definitive answer is yes. In the US and in most other nations, cryptocurrencies are taxed as property, but not as currency. That is to say, every sale, trade, or other disposal of a cryptocurrency is a taxable event. This will involve selling a token in fiat currency, exchanging one token with another or even spending your crypto to buy goods or services.

Depending on the taxation, a short-term trader who employs crypto pattern charting to trade frequently will find the distinction between short-term and long-term capital gains to be the most valuable. Short-term gains are those that are profits out of assets that are less than one year and taxed at your usual income tax rate which may be up to 37 percent relative to your income level. This would imply that the government will acquire a big percentage of profits to most traders. In comparison, much more desirable is the taxation of long-term gains (assets held over one year), which is usually 0, 15, or 20 percent. The regulatory overbearing is on the rise, and has never been more critical to ensure that each and every transaction is carefully monitored. New laws will oblige the crypto exchanges to report the activity of users directly to the IRS, which will not allow concealing your activity. It is an essential component of being a responsible crypto investor to understand the specifics of the taxation of crypto gains and keep proper records.

Resolution: The Golden Middle Way of Trading

It takes both a two-pronged attack to complete the crypto market successfully. The initial section is the art of technical analysis where a person learns the crypto chart patterns to identify market opportunity and risk management. The second and as significant is basing your trading policy on a long run responsible view that takes tax considerations. With a strict technical analysis combined with the knowledge of tax liability you not only set yourself the path towards potentially high profits but also do so in a manner that is both responsible and well informed.