
Fundamental vs. Technical Analysis
Crypto Trading & Investment Strategies
How to Evaluate Crypto Assets Like a Pro
Before investing in crypto, itβs essential to analyze projects properly. There are two main approaches:
π Fundamental Analysis (FA) β Evaluating the Project
FA helps you determine whether a cryptocurrency has long-term value by analyzing:
β
Whitepaper & Roadmap β What problem does it solve?
β
Team & Developers β Are they experienced and transparent?
β
Use Case & Adoption β Is the token actually used?
β
Community & Partnerships β Strong communities drive demand.
β
Tokenomics & Supply β Limited supply often leads to scarcity.
πΉ Example: Bitcoin has a fixed supply of 21 million coins, making it scarce and potentially more valuable over time.
π Technical Analysis (TA) β Reading the Charts
TA helps traders predict price movements based on historical data. Key tools include:
π Candlestick Patterns β Identify market trends and reversals.
π Support & Resistance Levels β Predict where prices may bounce.
π Moving Averages (MA) β Track price trends over time.
π Relative Strength Index (RSI) β Measure overbought/oversold conditions.
π₯ Pro Tip: Combining FA and TA gives you a well-rounded investment strategy.