Contest!! || Fundamental and technical analysis in cryptocurrency

Hello everyone,
It's your favorite Steemian @rakiya from Nigeria and I'm delighted to join in this contest organized by @khursheedanwar in this noble community today. It's a wonderful contest and I love to share my participation in it.

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- What type of analysis is fundamental in crypto space?

Basically in crypto there are majorly two type of analysis that is usually carried out by traders and investors before they will go ahead to invest in an asset of their choice and these are the fundamental and technical analysis.

So in this question above I will like to explain what a fundamental analysis is all about. As the name suggests fundamental, it is a type of analysis that checks the root or history of the said token taken into consideration the project founders, the blockchain where the crypto is built and the management behind the project as well as news.

So this means that for a trader to carry out fundamental analysis it means he or she must be vast in the knowledge of the asset knowing the team behind the project, how far the asset has moved, when was the asset created, for what reason was it created i.e the usecase of the asset as well as the many news surrounding the asset.

When you do all these checks before going into any crypto investment then you have carried out fundamental analysis on the said asset.

- What type of analysis is technical in crypto space?

Technical analysis is the second type of analysis present in the crypto currency space or stock market. Here this is also the most commonly used analysis by traders because it doesn't requires too much information as in the case of fundamental analysis.

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Here a trader needs to go to the chart of the asset and then analyse the market via the chart. Here the analyst checks the support and resistance level, the ATH and ATL within a given period. Also the analysis here is done major for short time investors as many people who analyse the market using the technical analysis are just scalp traders.

So traders here check the market and once they see an opportunity to enter the market and trade i.e buy or sell the asset they do so and make use of the opportunity presented at any point and time.

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

In my opinion based on the explanation I have provided above, you will agreed with me that the fundamental analysis is the analysis used for a long term investment because it carries alot of things into consideration as investors or traders here are looking at the authenticity of the project before they can put their money in it.

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Technical analysis on the other hand is a short term investment because a trader can just go to the chart and see a signal and the enter the market and trade within 15 minutes and then make his or her profit and then go out of the market.

So you can see from the both explanation that the technical analysis is for quick trade whereas the fundamental is more of future trade where investors invest and then come back on the next 3-4 years or months to see the growth they have made so far.

Here I will want invite a few ladies to also join the contest and share their entry as well. I invite @dave-hanny, @josepha and @mesola.