Blockchain and Cryptocurrency Beginner - About Crypto Trading and Analysis

In the cryptocurrency space, trading is one of the major aspects when it comes to earning and making profits in cryptocurrency. Trading is basically the act of buying and selling of any cryptocurrency asset. When it comes to trading any cryptocurrency assets, exchanges play a very important role in enabling users, buy and sell cryptocurrency assets of their choice. Trading cryptocurrencies are done on exchanges which make it possible for anyone to trade (buy and sell) any cryptocurrency assets.

Trading cryptocurrency assets can be done in either centralized exchange like Binance, Kucoin, Okex, Coinbase, or decentralized exchange like Uniswap, Pancakeswap etc. In most centralized cryptocurrency exchange, there is what is known as an order book which is basically a list of open orders by buyers and sellers, on a particular cryptocurrency pair. When a trader goes to an exchange to trade, the trader has the intention to buy a particular cryptocurrency asset at low prices and sell at higher prices so as to make profit. The ultimate goal of trading is to make profit. A lot pf traders make use of different tools like fundamental analysis, technical analysis and risk management strategies that will help them make the most profit from the cryptocurrency market.

Define and explain what are the tools used for trading (Technical Analysis and Fundamental Analysis)

When it comes to cryptocurrency trading, there are tools that are used for trading so as to make the most profit. The goal of every cryptocurrency trader is to make profit which means that the trader aims to make accurate forecasting so as to buy low and sell high. Some of the tools used that can help in trading are fundamental analysis and technical analysis.

Fundamental analysis

Fundamental analysis is a very common tool that is used in cryptocurrency trading. Fundamental analysis has proven to be one of the most effective tools when it comes to trading any cryptocurrency asset. When using fundamental analysis in trading, the trader pays close attention to the project, the trader analyses the cryptocurrency volume and liquidity, team behind the project, what the cryptocurrency project is trying to solve in the industry, the number of good exchanges that it is listed, the news surrounding the project, partnerships, the cryptocurrency market capitalization, circulating supply of the cryptocurrency, total and max supply of the cryptocurrency and more. All these would help the trader to make better trading decisions. A cryptocurrency with a good fundamentals is good for trading because it means that the cryptocurrency has a high chance of increasing in price. Example of a good fundamental analysis is the listing on top exchanges.

Tweet - Coinbase list STORJ

Tweet Source

Tweet - Binance to list GYEN

Tweet Source