What is the method of analyzing digital currencies?
The analysis of digital currencies depends on your goal of buying digital currencies, whether it is for speculation or for long-term investment.
Analyzing digital currencies for the purpose of speculation
If your goal is speculation, there are two methods of analysis, which are:
Technical analysis: Technical analysis in the digital currency market focuses on studying charts and price patterns to predict future price movements. Technical analysts use indicators such as moving averages, trend lines, and oscillators to analyze past data and predict price movements.
Fundamental analysis: Fundamental analysis studies economic and financial factors and news that may affect the value of digital currencies on exchanges. This includes looking at currency use cases, legal changes, number of users, and development team to determine the strength of the project and its potential for success.