Though both Trading and Hodling require you to manage risk, it plays out over different time frames – short term and long term – and the influences on risk – how it manifests as price movement, and the approaches to managing it – are different for each.
The umbrella term for analysing short-term asset price movement and volume of trading is Technical Analysis.
Taking a much broader look at the influences on future success of the asset and measuring risk through factors that play out over a longer period of time is referred to as Fundamental Analysis.
Fundamental and Technical Analysis can overlap, but they provide a useful framework for separating trading from investing. But both approaches still come down to measuring risk.
So the basis of this section on learning how to trade cryptocurrency will start by looking at the decision making process:
Technical Analysis – Understanding price and where it comes from; reading price data & price charts; interpreting historical trends; learning about volume & key price indicators
Fundamental Analysis – Understanding crypto’s key adoption/performance/health metrics; price correlation with the wider economy; available adoption/price models
Risk Management – how to measure risk; risk and trading size
Once you’ve understood the concepts around decision making, we’ll move on to execution:
Making your first trade – Learning how to actually place a trade, based on your assessment, and the complexities around that.
Advanced Trading Topics: Once you have learned the basics, we can introduce more complex and riskier trading tools which can increase your exposure through leverage or by speeding up the execution process through automation.
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