Difference Between Technical Analysis And Fundamental Analysis

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I want to talk to your about the differences between Fundamental analysis and Technical analysis .
Defination,
Coin analysis is trying to make various predictions by examining the crypto money market and the price graph of the crypto money analyzed. By performing coin analysis, investors can anticipate risks and opportunities. In this way, investors can invest at the right time.
If the price change in cryptocurrencies is analyzed correctly, taking into account environmental factors, it can make a profit in the changing and high-risk crypto money market. It depends on the luck factor that traders make profit or loss before analysis.

How is Fundamental Analysis Done?

There is no need for learning to do basic analysis. All of us who follow the market instantly can make fundamental analysis. Because what counts in fundamental analysis is research and attention. While doing the basic analysis, the economic situation of the global market, popular entrepreneurs and the point of view of the countries with strong economy are taken into account. At the same time, political competition in the world, the Coronavirus Pandemic and financial efficiency are also evaluated in the fundamental analysis process.


How is Technical Analysis Done?

If you want to do technical analysis, you need to know the charts. The sub-headings of technical analysis can be listed as; It is also necessary to have sufficient knowledge of terms such as support points, resistance points, ascending-descending trend, ascending channel, descending channel.

Step 1 ,

For technical analysis, it is necessary to do market research first. There are important cases in the world in terms of economic and social aspects. This situation affects the markets as well as the prices of cryptocurrencies. One of the most important points of technical analysis is to know the supply and demand balance well. If demand increases, the price of cryptocurrencies rises. However, if the demand decreases and the supply increases, this time there will be a decrease in prices.

Step 2 ,

Patterns are very important during technical analysis. Formations are formed by graphics. It helps us to determine the support and resistance points of cryptocurrencies with formations such as double top formation and double bottom formation. In this way, we can see the end or start point of a value. Thus, the downtrend or uptrend of cryptocurrencies occurs.

Step 3 ,

Another important rule when doing technical analysis is indicators. Thanks to the indicators, we can identify the momentum and support/resistance points of the cryptocurrency. Indicators showing the connection between the two-way movements show us in which direction the medium and short-term trend may continue.


Conclusion,

In order to properly analyze coin, it is necessary to examine many factors and developments regularly and carefully. Examining one of the factors can make the trader profit, but it is most important to minimize the risk, to evaluate all the factors simultaneously. Even the trader who invests by considering all the data can make a loss as a result of a sudden development in the market. Despite all the techniques and predictions, the cryptocurrency market, like any investment, includes risk factors.

I really hope it will be useful for you.

Make big profits!