Fundamental Trading Analysis

Fundamental Trading Analysis

There are many factors that traders examine and analyze when choosing a crypto to trade. Some traders might look for trends on a chart while other traders check if the demand is increasing. Traders typically make use of two types of evidence which can be classified into two broad categories: fundamental analysis and technical analysis. On this article, we’ll focus on fundamental analysis.

Both types allow a trader to collect evidence to form a decision about the trades they are considering on placing in the market. The analysis will form the basis of the trader’s strategy. Some traders will use one type of analysis or a combination of fundamental and technical analysis to select trades and time their entries and exits.

Fundamental analysis is a method of evaluating the intrinsic value of an asset and analysing the factors that could influence its price in the future. This form of analysis is based on external events and influences, as well as financial statements and industry trends.

Fundamental analysis uses public data to evaluate the value of a cryptocurrency. There are various tools and techniques that can be used for fundamental analysis, but they have been categorised into two types of fundamental analysis: top-down analysis and bottom-up analysis.

Top-down analysis takes a broader view of the economy, starting with the entire market before narrowing down into a sector, industry, and finally a specific token/coin. Conversely, bottom-up analysis starts with a specific token/coin and widens out to consider all the factors that impact its price.

So investors who follow these analyses will expect that they can buy token/coin with favorable recommendations because such token/coin should have a higher probability of rising over time. Likewise, token/coin with unfavorable ratings are expected to have a higher probability of falling in price. Such token/coin are candidates for being removed from existing portfolios or added as “short” positions.

About RoboFi

RoboFi (https://robofi.io/home/) is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.

About VICS

VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.

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