Binance Academy
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A Guide to Cryptocurrency Fundamental Analysis
Summary
Cryptocurrency fundamental analysis delves into existing information about a financial asset. For example, you can research the use cases for a financial asset, the number of people using it, or the team behind the project.
The goal of conducting research is to determine whether an asset is overvalued or undervalued. Afterwards, positions can be traded based on personal insights.
Introduction
Trading highly volatile assets like cryptocurrencies requires certain skills. Choosing strategies, understanding the overall picture of trading, and mastering technical analysis and fundamental analysis are all practical means to continuously accumulate experience.
Technical analysis can draw on certain expertise from traditional financial markets. Many cryptocurrency traders use the same technical indicators used for forex, stock, and commodity trading. No matter which asset is traded, tools such as the Relative Strength Index (RSI), Exponential Moving Average (MACD), and Bollinger Bands can be used to predict market behavior. Therefore, these technical analysis tools are also extremely popular in the cryptocurrency space.
Cryptocurrency fundamental analysis delves into existing information about a financial asset. For example, you can research the use cases for a financial asset, the number of people using it, or the team behind the project.
The goal of conducting research is to determine whether an asset is overvalued or undervalued. Afterwards, positions can be traded based on personal insights.
Introduction
Trading highly volatile assets like cryptocurrencies requires certain skills. Choosing strategies, understanding the overall picture of trading, and mastering technical analysis and fundamental analysis are all practical means to continuously accumulate experience.
Technical analysis can draw on certain expertise from traditional financial markets. Many cryptocurrency traders use the same technical indicators used for forex, stock, and commodity trading. No matter which asset is traded, tools such as the Relative Strength Index (RSI), Exponential Moving Average (MACD), and Bollinger Bands can be used to predict market behavior. Therefore, these technical analysis tools are also extremely popular in the cryptocurrency space.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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