What is the major difference between FA and TA?

Technical Analysis refers to the process of forecasting the future price of digital currency by monitoring its historical price movements. It is also referred to as the charting approach to trading based on the fact that all its analysis is confined to the coins price history charts. Here, investors use a host of tools as moving averages and Fibonacci retracements. These are used to identify the highest and lowest price levels achieved, the trading volumes and trade patterns that the investor then relies on to make informed predictions about the immediate and foreseeable future price of the digital currency.

Fundamental Analysis, on the other hand, is thoughtful and in-depth research done on a financial asset to determine its intrinsic value. Investors using this strategy to cryptocurrency investments are always looking at the price value of a coin, both past, and present and relating them to an industry or global activity.

Whether you are using the Technical or Fundamental approach, there are few investment principles you would do well to remember. These include:

• Do not risk more money than you can afford to lose.

• Maintain a separate emergency fund

• The crypto markets are highly dynamic and a strategy that worked yesterday may not be as effective tomorrow

• You can also always use both strategies when vetting investments if you hope to make even more informed and more accurate forecasts

• When it comes to cryptocurrency, don't allow your emotions to take control because you can easily give in to fear, uncertainty, and doubt. It can lead to panic sell or worse; you may lock your funds in worthless investments.