MODULE 2 - Dan Pentagram
📚 Intermediate Cryptocurrency Course: Lesson 5 - Technical and Fundamental Analysis for Investors 🧠
Welcome to the last lesson of Module 2! To make smart investment decisions, it is not enough to know what cryptocurrencies are, but how to analyze them. Here we present the two main schools of analysis.
📈 Fundamental Analysis (FA): It focuses on the "real" value of a crypto project. To apply FA, you thoroughly research: who is behind the project, what problem its technology solves, the size of its community, and how its tokens are designed. The goal is to understand the long-term potential of the cryptocurrency.
📉 Technical Analysis (TA): This is the science of studying price charts and trading volume to predict future movements. Investors who use TA look for historical patterns, support and resistance levels, and trend lines. It is based on the idea that price history tends to repeat itself.
👽Combining both analyses is the best strategy. Fundamental Analysis helps you decide what to invest in, while Technical Analysis helps you decide when to do it. With this, we conclude Module 2.
— Dan Pentagram