Lesson Two: Types of Analysis in Cryptocurrency Trading
In order to make correct decisions while trading crypto, you need to learn 3 types of analysis:
1. Technical Analysis
It relies on reading charts and price movements.
Basic tools:
Support and resistance
Trend lines
Indicators like RSI and MACD
🎯 Goal: Determine when to buy and when to sell.
2. Fundamental Analysis
It focuses on the project itself and the data surrounding the currency.
You study, for example:
The team behind the currency and project
The uses of the currency and the technology behind it
News about partnerships, updates, or listings on exchanges
🎯 Goal: Know if the currency is strong and could rise in the long term.
3. Sentiment & Liquidity Analysis
It focuses on market psychology and trading volume.
For example:
Is there (fear of missing out)?
Are people scared and selling?
Is there strong capital inflow in the market?
🎯 Goal: Understand the general atmosphere and move with it.
✅ Advice for beginners:
Don't rely solely on charts… Follow currency news, monitor the market, and train yourself to read between the lines.
