How Historical Data Can Help You Make Informed Trading Decisions

Data is very important, as it is what helps traders, investors, financial analysts, employees, consumers, etc to know about the past performance of a company. In the crypto market, historical data, is what helps you to know both the date, which the asset became high or low and the current price, right from when the asset is launched till it current price.

Coinmarketcap

If you want to make an informed trading decisions then, you should consider looking at the historical data of the underlying asset that you want to trade on or invest in. This is the reason why investors rely more on historical data than cracking their brains to analyze the market through a means known as technical analysis, where you will have to use indicators to analyze the market.

Well, I think this best workout for short and long-term traders and not for investors who want to invest for a longer duration of time.

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Historical Data

As we have said earlier in our introduction, historical data helps you to know the past and current price of STEEM beginning from when it was launched till date which also helps you to know about the past and current information of Steem.

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Historical data records and stores the data of a digital asset and other financial information. Like in the context of companies, where "statements of financial position (Balance sheet)" and "income statement (trading profit and loss)" are prepared so the users of financial statements that have an interest in investing in such a company can see and make an informed decision is historical data, which gather the price information of an asset for investor or trader like you to see and make informed trading decisions.

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Types & Importance

Historical data are of different types which range from the aforementioned types below.

• Intra-day data, which is the data that contains the current price movements of an asset.
• Daily
• Weekly
• Monthly

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From daily down to monthly data are the types of data that contain information on what happens in the market at a specific period.

Note, that we are looking at historical data in the context of crypto trading, which if we are to look at historical data generally, then we should include economic data, inflation, industrial activities, manufacturing activities, and so on. Historical data is very important in the crypto market you can use it and predict the future movement of an asset, and identify trends and the performance of the asset right from when it was launched into the market.

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Looking at the historical data of STEEM for the past 1 month which begins from 03/04/2024 -04/06/2024. From the screenshot, we can see that STEEM soared to $0.3351 on 30th Ma, 2024, and then started dropping to the current price of $0.2734 as of the time of writing this post.

With this type of information that we have seen from the historical data of STEEM, it would be easy for you to know if the market will be good in the next coming days, which without you looking at historical data like this, it would be so difficult for you to make an informed decision that would be profitable to you.

How and Where to Get Historical Data

Getting the historical data of your favorite digital asset is very easy as data has become a very common piece of information that you can sort online. The importance of data is what has made historical data very common information as a crypto trader or investor you can get historical data from any of the following

• Coinmarketcap
• Tradingview and other trading platforms.

You can also download the historical data of the currency of your choice as an Excel into your device.

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Disclaimer

_{Historical data is what we have learned today in this post which you have just read my good friend. It is helpful information that can assist you in making informed decisions for your trading and investment. Note, this post, is strictly for educational purposes, and not as investment advice.}

Reference and Coinmarketcap