Hello Binancians. 😊
Technical analysis and fundamental analysis are two methods you can use to evaluate the value and behavior of cryptocurrencies. Both have their advantages and disadvantages, and it is up to you to decide which one best suits your trading style and goals.
Technical analysis is based on the study of price and volume patterns of cryptocurrencies in the market, using tools such as indicators, charts, and trend lines. The goal is to identify support and resistance zones, entry and exit points, and possible future market directions. Technical analysis assumes that all relevant information is already reflected in the current price, and that the market moves following certain rules and cycles.
Fundamental analysis focuses on the study of internal and external factors that affect the value and usefulness of cryptocurrencies, such as its technology, its team, its community, its adoption, its competition, its regulation, etc. The objective is to determine the intrinsic or real value of a cryptocurrency, and compare it with its market price. Fundamental analysis assumes that the market is not always efficient, and that there may be discrepancies between the price and value of a cryptocurrency.
To use technical and fundamental analysis in cryptocurrency trading, you can follow these steps:
1. Choose one or several cryptocurrencies that interest you, and do research on their characteristics, advantages, disadvantages, risks and opportunities. You can use reliable sources like Academy BNB¹ to learn more about #Criptomonedas .
2. Observe the price and volume behavior of your chosen cryptocurrencies on different time frames, and look for patterns, trends, supports, resistances, breakouts, pullbacks, etc. You can use platforms like [TradingView](^5^) or [Forex.com](^3^) to access charts and technical indicators.
3. Establish your trading strategy, defining your risk profile, your time horizon, your capital, your objectives, your entry and exit rules, and your risk management. You can use different types of orders, such as limit, market, stop loss, take profit, etc. to execute your strategy.
4. Monitor the market and adjust your strategy based on changing conditions. Stay up to date with news and events that may influence the price and value of the cryptocurrencies you trade. You can use sources like [CoinDesk] or [Cointelegraph] to stay informed about the crypto world.
5. Evaluate your performance and learn from your successes and mistakes. Keep track of your trades, your profits and losses, and your emotions. Analyze what worked and what didn't, and seek to improve your knowledge and skill as a trader.
I hope this information has been useful to you. Remember that cryptocurrency trading is a high-risk activity, and that you must do it responsibly and with caution. Don't invest more than you can afford to lose, and don't give in to greed or fear. If you have any other questions, don't hesitate to ask me. I am here to help you. 😊
Bibliographic references
(1) Guide to fundamental analysis of cryptocurrencies. https://academy.binance.com/es/articles/a-guide-to-cryptocurrency-fundamental-analysis.
(2) What is fundamental analysis? And a technical analysis? https://www.coinbase.com/es-LA/learn/crypto-basics/what-are-technical-analysis-and-fundamental-analysis.
(3) Technical analysis — Training — TradingView. https://es.tradingview.com/education/technicalanalysis/.
(4) Technical Analysis in Trading | Definitive guide to FOREX.com. https://www.forex.com/es-latam/trading-academy/courses/technical-analysis/introduction/.
(5) Technical and fundamental analysis | Complete and free guide. https://guiadeltrading.com/analisis-tecnico-fundamental/.
