The three types of cryptocurrency analysis.

[Dr.Bitcoin_Strange]

It's really good to know these things, some people thinks that trading is easy but before you finish learning the theory aspect of trading before going into the practical trading journey, you will understand that lecture is really broad. Some people might think that it's not necessary to know all those things, they think it's just about knowing a strategy and them start trading but it's so, if you don't learn how the market works, you will be a liquidity all the time. The statement that "knowledge is power, " Is really straight forward in trading.

[Mpamaegbu]

Focus on fundamentals is best because if a company has good fundamentals, it has good value inside...

You can say that again about fundamentals. It's very obvious that the the crypto market is highly manipulated. In a manipulative market, fundamentals tend to be more helpful or destructive for traders and investors alike as once they hear or read any related news they're expected to swiftly take actions. The crypto industry is still highly volatile. Any negative or positive news can change the sail of a project to a complete different direction. It's not that way with FX trading. Fundamentals can cause price to spike in a different direction but it will definitely return to its original trend.

[Arenga pinnata]

my main motive of creating this thread is for newbies who are just getting started with cryptocurrency to go through it and learn and understand the three types of cryptocurrency analysis.

There are three types of cryptocurrency analysis:
Fundamental analysis.
Technical analysis.
On-chain analysis.

Well, this will be very useful, friends, for beginners who still don't understand the basics of analysis in trading which must be mastered before jumping into trading itself. Technical and fundamental analysis are the things that must be prioritized. Moreover, these two types of analysis also develop into many other things that a trader must also pay attention to.

And one more analysis that a trader must really understand apart from technical, fundamental and on-chain analysis, namely sentimental analysis.

In fact, I was personally taught by my friends that sentimental analysis is very important in making decisions after making technical and fundamental analysis. Because it is through sentimental analysis that we can also assess the impact of emerging news on market sentiment. Will it have a bullish or bearish impact, so I think beginners should also really understand sentimental analysis.

[FortuneFollower]

Knowledge brings up the potential of what the man can truly do: especially when he knows what to analyze and watch for, because he has already seen some patterns on other projects / coins, and can act up on it accordingly.

Great work, OP!

[Ahli38]

There are three types of cryptocurrency analysis:
Fundamental analysis.
Technical analysis.
On-chain analysis.

Good Job OP. But, Sorry OP, I think On-chain analysis is still included in fundamental analysis. Because in fundamental analysis we also analyze the on-chain data that we are focusing on. To assess various aspects of the on-chain itself. Such as the number of hodlers, the strength of the hodlers, whether the transactions in them are healthy or not, and many other things, which later we can also use as material for sentimental and technical analysis. In stock trading, we also often analyze a company's finances and other matters included in the company's body. Which in a crypto coin we research or trace On-chain.

So in my opinion there are several basic analyzes but the most basic is
- Technical Analysis
- Fundamental analysis
- Sentimental Analysis.

And in technical analysis there are also several other analyses, and also in fundamental and sentimental. Please correct me again if I'm wrong.

But it doesn't really matter because it's just a different term. What is important is that the purpose of the analysis can be understood and provide benefits to traders to be able to maximize profits in their trading.

[irhact]

On- chain analysis: on-chain analysis looks at the public data on the Blockchain. It is an emerging field that is unique to the cryptocurrency space. This are on-chain analysis is mostly used by traders, traders use it for better predicting of market movements and gauge market sentiment. Traders also use this on-chain analysis to spot the reasons different market participants are buying and selling, such as miners selling to pay Bills or hedg funds taking profits. traders also use on-chain analysis to see how different market participants are behaving, such as institutional investors, miners, changes and retail trading. traders use range of signals, which includes Wallet balance, coin dormancy and transaction value.
The chart below is an example of on-chain analysis chart.

This caught my Category of analysis caught my interest because recently I cam across it few months ago and I've been trying to delve deep into the fundamentals and the concept upon which this type of analysis is based, I've found out so far that the sentiments you will get from this will have slight relativity with what you will derive from fundamental analysis because I got to understand that the behavioral patterns of traders and investors as seen from fundamental analysis is reflected on the charts which creates for the kind of volatility and movements seen on the charts which layer in turn reflects in the data you will gathe lr from on chain analysis. Just like you did said that it's mostly peculiar to crypto trading,  it's principal can also help with insights on trading out there in the financial market.

[Jegileman]

After doing your research on fundamentals of a company, project, you can move on with good insight on its possible value and make your investment decision. Let's say fundamental analysis is for investment and investor, not for traders.

Fundamental analysis can be a good gig for traders also when they’re able to predict the news about a project and what they foresee of the asset they want to trade in the market. The only disadvantage of traders using fundamentals to trade is that when it doesn’t go in your favour, you’re at a very high risk of losing everything. Whereas if you’d venture into those assets as an investor, you’ll not lose completely but your portfolio will be down and if you’re not a short time investor, you’ll can as well recover from the loss after some time if some big fundamentals suggest it will grow back again.

Each analysis has its strengths and weaknesses, we can form a more complete perspective on market conditions if knowing that. Trading is not just about data, but also about market behavior and managing risk. So, keep practicing, be disciplined in research, and don't forget the market is also influenced by external factors that often cannot be predicted from charts or financial reports, and what makes the difference between traders is the ability to read signals from the indicators. If someone only know the theory but can't understand market movements, I think this will be useless too.

Market movement is good and very important for traders because it helps them to be well positioned on the next big possible move of the market when they are already well understood by such traders. The market is very big and are also affected by external factors which you should be expecting and you should also know how they affect the market. Whether positively or negatively, as a trader, you’re more at a good position to benefit from the market. The market is a concept that when you’ve grasp it, you’ll be on the winning side most of the time you trade.

[Lida93]

It's really good to know these things, some people thinks that trading is easy but before you finish learning the theory aspect of trading before going into the practical trading journey, you will understand that lecture is really broad. Some people might think that it's not necessary to know all those things, they think it's just about knowing a strategy and them start trading but it's so, if you don't learn how the market works, you will be a liquidity all the time. The statement that "knowledge is power, " Is really straight forward in trading.

Anybody that thinks that trading is easy should also try and learn about trading so that they can understand how the cryptocurrency trading works. The problem of trading starts before now when influencers where posting huge profits they were making from trading which had made many people to think that trading is a good and fast way to make money from the market apart from gambling. Nothing good comes easy and no profitable trader has a smooth or easy beginning.

[taufik123]

Anybody that thinks that trading is easy should also try and learn about trading so that they can understand how the cryptocurrency trading works. The problem of trading starts before now when influencers where posting huge profits they were making from trading which had made many people to think that trading is a good and fast way to make money from the market apart from gambling. Nothing good comes easy and no profitable trader has a smooth or easy beginning.

Influencers who do such Flexing just want their social media engagement to be more crowded and more followers, this is like Farming Followers for their social media.
Meanwhile, the content they spread, some of them are just full of lies that do not match reality.

As I found out on some Influencers who tried to do a Shill on the memecoin they were about to buy.
At first they may get a little profit but after that they continue to earn thousands of dollars easily.

But behind the practice is that people who try to follow it by buying the same memecoin will only become "EXIT LIQUIDITY" of the influencer,
this is a smart practice that rogue influencers do to take easy profits.

[SATWAT]

Anybody that thinks that trading is easy should also try and learn about trading so that they can understand how the cryptocurrency trading works. The problem of trading starts before now when influencers where posting huge profits they were making from trading which had made many people to think that trading is a good and fast way to make money from the market apart from gambling. Nothing good comes easy and no profitable trader has a smooth or easy beginning.

Influencers who do such Flexing just want their social media engagement to be more crowded and more followers, this is like Farming Followers for their social media.
Meanwhile, the content they spread, some of them are just full of lies that do not match reality.

As I found out on some Influencers who tried to do a Shill on the memecoin they were about to buy.
At first they may get a little profit but after that they continue to earn thousands of dollars easily.

But behind the practice is that people who try to follow it by buying the same memecoin will only become "EXIT LIQUIDITY" of the influencer,
this is a smart practice that rogue influencers do to take easy profits.

Biggest problem is we never know realities of these fake influencers and fake traders those are doing things on social media and increasing their followers which are following them blindly for big profits but having loses because just fake images are never giving anything big to them.
Some time back my few friends were following few influencers on social media for having big profit but sadly all of them gone terrible down with never able to have anything recovered from this after depositing things on exchanges and paying fees just because of this I never encourage anyone for them because having personal search and workout is always better instead of jumping for things like these.
Recently meme coins are also doing some tricks but just for those able to have early things after few days these are also all gone down and then never came back on their best price.

[taufik123]

-snip-
Some time back my few friends were following few influencers on social media for having big profit but sadly all of them gone terrible down with never able to have anything recovered from this after depositing things on exchanges and paying fees just because of this I never encourage anyone for them because having personal search and workout is always better instead of jumping for things like these.
Recently meme coins are also doing some tricks but just for those able to have early things after few days these are also all gone down and then never came back on their best price.

This is a common practice during memecoin hype, and the X accounts that share the recommended memecoins are the conspirators who have already deceived users quite a bit.

They are just looking for a large volume and then come out with selling all their memecoin holdings.
It looked high at first, but they had a lot of wallets scattered so they weren't easily detected, then took the available Liqudity and the price of the coin fell instantly.

This kind of practice is still often used to play on greedy new traders, and they just buy but then sell at cheap and even worthless prices.

[Kagaru]

It's really good to know these things, some people thinks that trading is easy but before you finish learning the theory aspect of trading before going into the practical trading journey, you will understand that lecture is really broad. Some people might think that it's not necessary to know all those things, they think it's just about knowing a strategy and them start trading but it's so, if you don't learn how the market works, you will be a liquidity all the time. The statement that "knowledge is power, " Is really straight forward in trading.

Anybody that thinks that trading is easy should also try and learn about trading so that they can understand how the cryptocurrency trading works. The problem of trading starts before now when influencers where posting huge profits they were making from trading which had made many people to think that trading is a good and fast way to make money from the market apart from gambling. Nothing good comes easy and no profitable trader has a smooth or easy beginning.

You are right, many people end up trading because they just cannot keep their arms off and trade as it they can make a fortune over night just because they have seen another person to have made a posting of big profits made on the internet. It is another matter when you are an actual participant. Trading is not a matter of bringing a strategy but a matter of knowing the market, managing the risk, amending your feelings and remaining constant. The education is just continuous. Survivors and achievers are the ones who take it very seriously, and not a game. It is correct, there is nothing good to get without efforts, and it is true about trading.

[el kaka22]

I am sure there should be more other levels beyond these three types of analysis for a trader to make consistent profits. Yeah, these analyses are just basics and cannot help for traders against all types of market fluctuations. This is the reason why many newbie traders are going to buy signals rather than struggling with the learning part of crypto trading. I am not recommending to buy signals but I am just notifying why people buy signals.

We need to agree that mastering all the requirements of trading is not possible for most of the people. Rather than trying and facing losses in trading, I guess they may go for buying signals given that they are capable of identifying an accurate signal provider.