Technicals vs Fundamentals: A Trader’s Guide To Crypto

 


All of Crypto Trading (and all of Trading, actually) can be put into two wide spheres: Technical Analysis and Fundamental Analysis. 
Technical Analysis is what the price chart is trying to tell you: the supports, resistance, moving averages, relative strength, weighted volume etc. Fundamental Analysis is what the asset 'claims to be, or be in the future': the team behind the asset, their track record, the utility of the asset in the present and in the future, their partnerships with the institutions who matter, their community and what not.
In theory, the technical and fundamentals analysis of a coin should be in agreement with each other. After all, if the fundamentals are so strong then why won't a coin be doing well?!
Sadly, this is not an ideal world, and so this isn't always the case. The reason being 'discovery'. So many great coins exist out there with tremendous fundamentals, yet remarkably underrated. That's because building a community and trust takes time. In other words, there exists a time period where you can get some wonderful coins at ridiculously cheap rates. But only if you do your research. For example, try reading up on Mandala or Hybrix.
So what exactly to do when the fundamentals don't agree with the technicals? A good answer is that it is not a good question. It depends on what you want to do. Are you going to buy and let it be there in peace in your wallet for a year? If so, then follow what the fundamentals are telling you. Are you a trader who needs to or wants to make 10 trades each day? Then follow the technical analysis. 
Whether you are Team Fundamentals or Team Technicals, make sure you trade with conviction. Believe in your inferences and stop second guessing. Happy Trading!

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