Contest!! || Fundamental and technical analysis in cryptocurrency

Hello guys,
It's a pleasure on my path to share with you all my entries in this week's contest which is titled "Fundamental and technical analysis in cryptocurrency" which was organized by @khursheedanwar. It is an interesting contest and I would love to drop my entry ASAP.

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Before we go ahead I would like to invite @josepha , @m-fdo , @dave-hanny to join this contest in this community today and share their participation as well, I do hope to see and read your entries as well.

• What type of analysis is fundamental in crypto space?

Fundamentals analysis is a type of analysis which crypto traders or investors carry out by checking the historical data of an asset, such as news about the market, the movement of the market after some period and also the amount of the asset in circulation.

They gather all these news so that they can be able to determine for themselves if they should go ahead to trade the asset or not. So this has to do with the news about the coins or cryptocurrency at large, the amount of the asset in circulation and if a major of it is held by investors or not.

Here traders don't get any information from the chart they focus on the project itself checking the team behind the project, the circulation of the asset and news that may probably after the asset or any asset that will after it as well.

When the traders have all these news they will then go ahead to make their various decision as to weather they should invest on the asset, hold or sell the once they are holding at that point and time.

• What type of analysis is technical in crypto space?

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Technical analysis on the other is the direct opposite of the fundamental analysis. Here the traders focus on the chart and then see the historical movement of the asset from the chart. When the study the chart carefully they will be able to identify key support and resistance level which will help them to know when to enter the market and when to exit the market.

Technical analysis is the one that is most used by crypto traders especially scalp or short term traders because they don't analyse the asset for too much long time they only do that for a short time and then exit the market.

• Which type of analysis is for long term decision making and which is for short term decision making in crypto space?

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For me I think fundamental analysis is for long term decision making whereas technical analysis is for short term decision making. Though aevery good trader will always combine both to minimise loss and maximise profit.

So for both short and long term it is important we take both into consideration but nevertheless if you are going for a scalp or short term trade it is wise you use the technical analysis for it because they news and others may not affect your analysis which you have decided to stay just a few minutes in the market.