Topic: Fundamental Analysis vs Technical Analysis on Altcoin Trading (Read 574 times)

You seem to be completely confusing these notions

Technical analysis is following the numbers without going into greater detail about the inner workings of a company, whether its should product come to fruition, and so on (read you don't have to understand the company Warren Buffett style). This is what fundamental analysis is concerned with. In other words, it is fundamental analysis (as the word itself suggests) which is more, and in fact, by far more longterm. On the other hand, with technical analysis you don't get busy with evaluating all those fundamental factors which affect business profitability in the long haul. You just pick up some TA tool and see if it works. If it doesn't, you try out something else until it does

Both are important, fundamental is supposed to be used as a support for technical analysis

When it comes to cryptocurrencies, technical analysis is worth nothing. If you'll notice there are very huge and unpredictable swings in the market. Cryptocurrencies are naturally volatile and you are better of sticking with fundamental analysis and seeing how good the project really is.

I see a lot of people say you can't do Technical analysis on altcoins because a lot of the indicators aren't there. That's not necessarily right. Technical analysis doesn't conform to a "certain indicator" list of criteria. Technical analysis involves evaluate the key factors involved with a business and its product. Sure if the product doesn't currently exist, then you are technically limited, but that doesn't mean you have to therefore just throw the analysis concept out the door. You can still evaluate its profit should its product come to fruition, you can still evaluate various other factors that currently do exist, like does the company have "skin in the game" does the company have an existing history with similar products and has it been successful? etc. etc. There"s a lot more to technical analysis than the basic "cookbook" of criteria that is most commonly assessed.

Just like fundamental analysis there's different ways to analyse, or different strategies. This also works for technical. I believe you can certainly apply technical analysis to the altcoin market, just as much as you can fundamental. Both do usually achieve different things though. Fundamental typically tracks trends, whereas technical tracks value in investment. There's usually more stability and confidence in decision making when doing technical.

Technical also suits longer term trading, whereas fundamental is short term.

The best technique for trading altcoins is to purchase when you feel that it is low but I will suggest that you must purchase right now because the will going so high, and I really expect that the price will gonna soar high, more than what we have here now, the  just hold for long for investment. That is how I think.

yes it is right to say that for long term investment it is necessary to have fundamental analysis. Although it is very clear that bitcoin is the best place for long term investment, but still you need to have good study about bitcoin in very beginning if you are going for long term investment in bitcoin. Because for long term investment you need to stay calm for a long time.

Google is your friend, just type both of analysis and you will know what's the difference. In short, Fundamental analysis is for long term trader, they will hold some pot altcoin for long time, in other hand, Techincal analysis is for short term trader/daily trader, they are always looking on chart price and make a prediction when they should buy and sell.

This is terrible advice. If anything, the opposite is true. I've been trading bitcoin and altcoins for years, and as long as the market is liquid (sufficient orders on the book), TA is very effective. I actually think TA is more effective on crypto markets because they are incredibly emotional and because the markets run 24/7 (no gaps).

Also, high frequency trading algorithms in forex markets and indices make them much choppier than cryptocurrency markets. Unfortunately, though, I think in time that BTC will start trading like the "real" markets as institutional players continue entering the market.


Altcoins are particularly news-driven, but I believe that news is generally just a catalyst for the supply/demand condition already reflected in the charts. For example: traders were already accumulating X coin and absorbing sellers' supply, so when good news emerges, the price can jump 20% or 50% in very little time due to the existing lack of supply.

there are a lot of ways to predict the price of a coin, but technical analysis is not a good way to see and understand how high the price of each one is going to be.
There is no indicator that can help you out because most of them have been created in order to be used on the stocks markets and forex as the main reason.
But they might help you a bit, but the altcoin market is only followed by speculations and some other news, not by the indicators that are not going to predict you a shit.

In the earliest days of a project, this is true, particularly when the coin is still considered to have a "micro" market cap of $1mm or lower. In the case of strong fundamentals, buying coins at this stage can equate to 100x or even 10,000x gains down the road.


Once a coin is mature (trading for a couple years with decent volume, healthy/growing community and network activity), then technical analysis becomes more important. I think that once coins are considered "reliable" and fundamentals are generally strong, simple supply and demand dictates price action. And TA is the best way to analyze supply and demand.

I guess what I'm saying is this: TA is really important for mid/high cap altcoins. Fundamental analysis is really important for low/micro cap altcoins.

Both are important, you need to learn both of them. One of them may work better than other in and under specific conditions that taking place in the crypto market. This is like a chance and probability. We need the mixture of Fundamental Analysis vs Technical Analysis.

both of them have their own disadvantage and advantage,
imho we need both of them to create the strategy and to make a movement.
just look at them(an experts),they're always showing their technical analysis and after that they will tell us what is going on and what will happen.
the majority people will look at the fundamental,
economy crisis,inflation and someting like that.
so it's like 2 side of coins,it has its own use

It depends on you.
I think if you want to invest for long term then you need to do the fundamental analysis which will give better idea about the project.
And if you want to daily trade or short time trade then you should look for technical analysis.

I am in Altcoin trading from quite a long now. What I have learned so far is that market is pretty irrational. Investors don't care or realize the technological aspects of a currency, they are behind price action. Any MMs 10btc pump on a mid cap with some rumour mongering on reddit and telegram groups can lead to a 100% jump leading him to get a good profit. Market is highly being run on sentiments. No analysis can work in such market where people mere copying whales and losing.

Technical analysis is a big pile of crap

Some of its tools may in fact work for some time in established markets (like major fiat currency markets) but most don't, and when they do, it is no more that a clock being right twice a day. Regarding fundamental analysis in cryptocurrency markets. most of the time it boils down to obtaining first-hand information about what's going to happen in the nearest future. This is called insider knowledge in other markets. For example, prior knowledge of Seqwit2X cancellation would give you an edge in Bitcoin provided you can correctly evaluate the consequences of this decision

Fundamental and technical analysis are the basic pillars of the modern day trading techniques. However, it functions in a different way in crypto world. Let me bifurcate it for you as per my understanding,

Fundamental analysis:
1. Market cap (percentile fluctuations to look for)
2. Trading volume
3. Accepted exchanges
4. Industry news

Technical analysis:
1. There are lot of chart analysis available but don't get confused and look at the basic pivot chart.
2. Find the price movement trend which repeats over and over again.
3. Historical data

I know these many analysis is hard for a person to keep track, so I follow only the price trends and trading volume. A good coin will have good amount of trading volumes. Sit with the basic pivot chart and try to find out any price movement trend which repeats itself. Once you are good with these two factors, trading will be a cakewalk for you.

You have to remember the Three Golden Rules in trading:
First Rule: Prices discount all information available to the public.
Second Rule: Price movements are not random. Trends behind the price action can be established by using Technical tools.
Third Rule: Price Trends are likely to repeat themselves.

But it all depends, there are some indicators that are giving good predictions about the price, bollinger bands are the worst indicator that you can use if you are going to trade with altcoins, because they are not exactly.
EMA and SMA are the best ones if you are looking to buy in a downtrend or just in an uptrend, because it let you know in which situation you are at the moment that you are going to start the trade.
But the others are not good, there are only a few who are working for altcoin trading, better to make your own strategy.

Just been said by the dude above that Both would really be beneficial for you to make since you can test out each of the ways to find out that it do contribute to increase your winning trades or not.This is just really a trial and error matter which if technical analysis wont work then you do try fundamentals which is common here on crypto trading because i can really tell the difference between both things and technical analysis do work for some scenario but not all the time but i do still make use of it together with some fundamentals which is more important.

It is still the combination of both. For me, I use technical analysis but I am not using many indicators. Just the simple patterns and then support and resistance. I am also using fibonacci retracement and then observe it in multiple timeframes. At first, I am just following the news and then follow the hype but sometimes I end up losing because I am being dumped on so I just revise my strategy. I concentrate more on technical analysis and then see any news that may affect the price. I focus more on altcoins that has high volume because my strategy works on those coins and my target profit in a trade is just minimal because I focus more on consistency rather than gaining 50% in a day and losing it all the next day.

You can not do technical analysis on altcoin trading because most of the indicators are never going to work the same as they do on forex/stocks/bonds markets, because they work by a very different way.
The price of altcoins is determined by bitcoin, and bitcoin price is only determined by news, speculations, whales, and a lot of thigs that are constantly moving the price.
If Bollinger bands are saying that the price will go up for X alt, but suddenly there are bad news, then it will drop, it is crazy.

When you trade altcoin in exchange, technical analysis is totall useless.

I have traded for 2 months ago, there is a lot of methodologies to invest that confused me. Fundamental Analysis vs Technical Analysis. Which one is better? Which one to go for? There can be different routes for different people. Do you believe in reading charts and looking at trends? Or do you believe in making investment decisions based on roadmap, whitepaper, DEV team?