Contest!! || Fundamental and technical analysis in cryptocurrency

Today I will be talking about the fundamentals and the technical analysis today in response to the entry of @khursheedanwar contest. Stay tuned below.

What type of analysis is fundamental in crypto space?

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When we actually talk about the fundamentals analysis in the crypto world, we mean the evaluation of the value of cryptocurrency and that is because we are actually examining the various quantitative and qualitative factors also. This analyse plays a fundamental importance for us getting details about the project and the economic model.

Some of the analysis that is fundamental in the crypto space I will be discussing below.

• Whitepapers and Roadmaps.

The first one I will talk about are the white papers and the roadmaps. This helps to review and go through the project's foundational draft out details in order to properly understand the goals and the technology behind the projects.

• Team and Partnerships.

The second analyse that is really fundamental is the team and the partnership. By actually analysing the credibility of the team members of the partnerships.

• Market Demand and Adoption.

This actually helps to know and helps to measure the level at which the cryptocurrency used and the real world applications of the cryptocurrency.

• Tokenomics.

The last one I will like to talk about is the aspect of the Tokenomic. In this section, this actually deals with helping to analyse the distribution method and the dynamics of the supply and the demands

What type of analysis is technical in crypto space?

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Now let me move to the next aspect which is actually the which type of analyse is technical. When we talk about the technical analysis in this own case, we are actually talking about the price movements and the trends of the market system. In this case, people or traders make use of indicators and various tools that can really help to interpret the market data effectively.

• Price Charts.

The first one I will be talking about here is the price charts. This deals with the visual representation of the price movement of the cryptocurrency in different time periods.

• Candlestick Patterns.

The second one people always consider is the Candlestick Patterns. In this case, this helps to actually identify patterns that can give us the glimpse of the price movements.

• Indicators and Oscillators.

The next one actually that helps people to analyse the market system effectively is the use of indicators and oscillators. In this case, people make uses of tools like the moving average, like the relative strength index, Bollinger Bands and many more.

• Support and Resistance Levels.

The last one I will certainly like to talks about before I actually round up is the support and resistance levels. This is you identifying the point where there is a buying or selling pressure.

Which type of analysis is for long-term decision making and which is for short-term decision making in crypto space?

Okay in this type of case, I will say I think the fundamental analysis is actually for the long-term decision making and while the technical analysis is actually for the short-term decision making. I will try to explain much more in details for us to understand

• Long-Term Decision Making.

Like I said, the fundamental analysis helps for the long term decision making and in this case, it is actually good for the investors that is thinking of actually holding a particular crypto for a very long period of time. This will certainly helps investors to actually know the factors that might influence the growth potential of the crypto in analyse. This will also let the investors to know the coin that will succeed and gain value over time.

• Short-Term Decision Making.

While when we talk about the short-term decision making, that is really where the technical analysis comes to the picture. Technical analysis is for short term prices movement most of the time and which traders can act on it and buy or sell quickly after putting into consideration the market trends and the patterns also. This helps traders to profit from the short-term price fluctuation.

Conclusion

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As I conclude, I will say botth fundamental and the technical analysis actually plays a very important role in the crypto space as it helps to detect the different investment strategies needed to thrive. Understanding both of the types of analysis can actually help to increase the investors ability in the world of crypto.

I am inviting @loveth01 @dprogress and @tripple-e to participate in this contest.