CRYPTOCURRENCY ANALYSIS.
Greetings,
It's your friend @mondraye.
Cryptocurrency analysis can be regarded as a method of carrying out research before making a cryptocurrency investment. It involves taking note of information that has higher chances of affecting the price of an asset and taking investment or trade decisions based on it.
There are three different types of cryptocurrency analysis and they include;
- Fundamental analysis
- Technical analysis
- Sentimental analysis
This is a type of cryptocurrency analysis that involves finding out basic information regarding a particular cryptocurrency project. This research focuses details such as the total and circulating supply, the usecases, the reputation of the team behind the project, the aim of the project, etc. Some of these information can be gotten by reading through the white paper.
This type of cryptocurrency analysis involves the proper interpretation of price chart which is believed to be a representation of the activities between buyers and sellers. This interpretation can further be enhanced through the use of technical indicators.
Sentimental analysis is a type of cryptocurrency analysis that involves taking not of information, news and romours regarding a particular cryptocurrency. These information can easily affect the emotions of traders and investors thus making them buy the said asset which will lead to an increase in value.
This type of analysis that comes as a result of taking note of activities that can lead to sentiments is usually utilized by short term investors who often buy the romour and sell the news.
| Fundamental | Technical | Sentimental |
|---|---|---|
| Mostly used by long term investors | Mostly used by traders who doesn't aim to hold | Mostly used by very short term investors. |
| Involves through research | Involves chart interpretation | Involves no further analysis. |
| The investment risk is minimal as investors tend to make use of spot trading after carrying out fundamental analysis. | Traders who make use of technical analysis often trade with leverage accounts thus creating high risk | Traders can use either spot or leverage accounts in taking their positions. |
| It requires basic knowledge | It requires advanced knowledge | It requires minimal knowledge. |
Summary
Cryptocurrency analysis has various approach to it which each of them proving profitable if well mastered. In as much as each of the methods are being used by traders, it is always best to combine them in other to maximize profit and minimize loss.
Link to tweet
https://twitter.com/SonOfMaaan/status/1551286875029217280?s=19
Your post has been skipped because its content has low quality.
Ok
Thank you.
Its very common topic and a number of posts already made by other authors in this community and steemit. Whatever, thanks for your psot but still try to improve post quality. For such kind of informative posts try to mention source from where you get idea or motivated to write this article. Thanks again.
All the information on the publication are based on what I have learnt so far. I didn't get the idea from any external source which is why the quality is seen as low.
I will work more on my post quality.
Thanks a lot brother.