The difference between fundamental and technical analysis

The difference between fundamental and technical analysis, mandatory things you should know – . When we are going to trade and invest, it would be nice if we already know the basics of analysis first, such as knowing what the difference between technical analysis and fundamental analysis is.

What is fundamental analysis?

Fundamental meaning itself is the basis, something very important that is used as a guide or basis in certain things. So suppose we want to buy a stock, in fundamental analysis we study all the factors that have an impact on the future stock price of a company, such as financial statements, management processes, industry, etc.

Even in cryptocurrencies, fundamental analysis is very important if we want to invest, we use this analysis so that we are not wrong in choosing or buying Coins or Tokens.

In fundamental analysis we have to look for a lot of information such as:

  • total market cap of a coin,
  • rank a coin,
  • the development team behind it,
  • solid community,
  • companies that support and invest in this coin,
  • the roadmap of future projects is clear

After you analyze fundamentally, you are expected to have an idea which Coin or Token is worthy of being an investment instrument because you already believe that the project is good in the future.

What is technical analysis?

Technical analysis is an analysis by observing price movements, volume, and trends. Price changes in cryptocurrencies are highly volatile. In 1 day, the price goes up 20% or down -20% is a common thing.

With the help of charts, patterns, volume data, we will know when to buy and when to sell. Usually technical analysis is used in short term, short or medium term investment.

Ada banyak indicator bantuan dalam analisis teknikal yang banyak dipakai seperti Moving Average (MA), Exponential Moving Average (EMA), Bollinger Bands (BB), Stochastic Oscillator, dan Relative Strength Index (RSI).

Is technical and fundamental analysis enough?

There are several things that affect the price suddenly such as good news and bad news. For example, the price of almost all Coins in May and June 2021 fell by more than 50% from the highest price because there was bad news from China which prohibited miners from mining Bitcoin.


Fundamental and technical analysis are both important to study, because with fundamental analysis, we can know which coins or tokens are good for the future to reduce the risk that we don’t want such as coins not selling in the market so prices will drop, projects left by developers, and so on. .

Likewise with technical analysis, we will know the right time to buy and sell to get maximum profit. In cryptocurrency you can profit in several ways, you can read here: how to make a profit from crypto

But we still have to monitor the latest news because this is the factor that makes prices go up and down rapidly. And also we have to be good at financial management to give a portion of how much we buy and sell.

That’s all for this discussion, I will try to write articles related to cryptocurrencies, so don’t miss it. Hopefully useful, we meet in the next post.

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