When it comes to technical analysis, some expertise can be inherited from the legacy financial markets. Many crypto traders use the same technical indicators seen in Forex
, stock, and commodities trading. Tools like RSI
, and Bollinger Bands
seek to predict market behavior irrespective of the asset being traded. As such, these technical analysis tools are also extremely popular in the cryptocurrency space.
In cryptocurrency fundamental analysis, though the approach is similar to that used in legacy markets, you can’t really use tried-and-tested tools to assess crypto assets. To conduct proper FA in cryptocurrencies, we need to understand where they derive value from.
In this article, we will attempt to identify metrics that can be used to craft your own indicators.