Let’s get a basic understanding of these two before anyone gets rekt trying to figure them out on their own.
⚙️ Technical analysis is the study of graphs and charts. Traders look at them to spot tendencies and predict price movements for a given coin.
A major component of technical analysis is the belief that a coin’s history could indicate its future movements.
Someone wise once said, “Without the past, there is no future.”🙂
⚙️ Analyzing the fundamentals, however, entail an entirely different approach to determining the strength of a project. Analysts and crypto enthusiasts who practice DYOR comb through a project’s technology, the coin’s use cases, competitors on the market, the project’s white paper, the tokenomics, and other characteristics that could be indicators of future success (or failure).
The goal here is to analyze all of these aspects to see whether the project is undervalued or overvalued. Usually, traders conduct technical analysis, and long-term investors analyze the fundamentals.
💭Moreover, combining the two approaches could help reduce risk when investing
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