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Fundamental Trading and Technical Trading: Which one is Better?

Wayne Jones • April 11, 2020

When it comes to trading, fundamental trading and technical trading are the primary schools of thought before approaching any market. Although both methods are at opposite ends of the spectrum, they are still used for forecasting and researching future trends in cryptocurrency prices. They also have their advocates and adversaries, just like any investment strategy. Let’s have a more in-depth look at the two.

Fundamental Trading

Fundamental trading is a method that involves evaluating the economic well-being of a country, and by extension, the currency. It is trading on a detailed examination of a crypto’s intrinsic value by looking at the underlying factors which influence the interest of the economy, company, and industry. Some of these factors include growth prospects for the economy, revenues, expenses, and income, the competitive factors the company faces, and the expected return on equity or assets in the industry.

The main idea is to create a quantitative value for the cryptocurrency that would feature in the above factors. Fundamental trading does not rely on trading swings and short term pricing, but it’s a long term investment approach because it may take time to realize the intrinsic value. As this approach looks at future expectations, it builds a valuation based on backward and forward information. 

Fundamental trading can also help a trader predict the future value of the cryptocurrency and to determine if it is overvalued or undervalued. Fundamentalists can discover investment opportunities not yet recognized by the market as a whole and can produce a profitable investment to a trader.

Technical Trading

Technical trading evaluates investments and identifies trading opportunities by analyzing statistical movements gathered from trading activity. Tools used in technical trading focus on scrutinizing the ways supply and demand for a cryptocurrency will affect changes in price, volume, and implied volatility. Technical trading creates short-term trading signals from various charting tools. Also, this approach helps improve the evaluation of a crypto’s strength or weakness relative to the broader market or one of its sectors, which can help a trader improve their overall valuation estimate.

This type of trading attempts to forecast the price movements of literally any cryptocurrency that is generally subject to forces of supply and demand. A trader can then capitalize on pricing opportunities and trends that can be identified in the market activity around each share. However, this approach reflects on being a backward-looking methodology since it is purely based on historical market activity.

Fundamental Trading VS Technical Trading: Key Differences

Fundamental trading examines a cryptocurrency by identifying its intrinsic value for the long term investment. On the other hand, technical trading involves evaluating and forecasting the price of a cryptocurrency in the future, depending on the price movement and volume of transactions. It works best with short-term investments since it uses price charts in the market.

Technical trading uses shorter periods to analyze cryptocurrencies as compared to fundamental trading, which employs more extended periods since investors want to invest in a cryptocurrency whose value will increase in several years.

Technical analysis is concerned with trading, while fundamental analysis focuses on investment. Traders use technical analysis to make short term trades as it gives the best time to enter or exit the market., Most investors use fundamentals to buy or hold cryptocurrencies since it focuses on ascertaining the actual intrinsic value of the cryptocurrency.

Technical trading involves making a decision based on prices and market trends, whereas fundamental trading consists of making decisions based on the information available and statistically evaluated. Therefore, fundamental trading considers both past and present data while technical trading only reviews past data.

Fundamental trading uses financial statements like income statement, balance sheet, cash flow statement, etc. these data calculate ratios and metrics that reflect the crypto’s performance and growth rates. Technical trading, on the other hand, relies on chart patterns , price actions, and technical indicators like moving averages and oscillators calculated from cryptocurrency prices to analyze the future price trends.

Relationship Between Fundamental Trading and Technical Trading

Whether fundamentals drive technicals and vice versa or if strong technical patterns can cause strong fundamentals are among the many dilemmas traders face. Even when fundamental trading is at turning points, technical trading can continue to follow a strong or weak pattern, which might cause them to be out of sync. Besides, a shock to a cryptocurrency can also make technical trading to be out of sync with fundamental trading, either positive or negative.

Technical trading is best for cryptocurrencies in the short run unless there is an unforeseen shock. For example, technical traders can respond to a clash in real-time and don’t have to wait for the next reporting date, so using the charts will result in higher profits. Crypto chart and pattern form using the buying and selling activities which reflect the real-time cryptocurrency behavior.

Also, fundamental trading may lead to long-run profits when the market charts fail initially after a shock by taking advantage of short-term mispricing when the surprise causes the markets to overreact. It may be wise to follow fundamental trading after a collapse because news is temporary and may be positive or negative to a shock’s fundamentals. On the flip side, technical trading may provide the opportunity to take advantage of a correction after the news is delivered. So, both trading approaches should be in sync in the long run.

Closing Thoughts

Technical trading is a tactical, short-term decision-making method that enables traders to build a vision of the market and make the right move at the right time. Fundamental trading should be applied strategically , over more extended periods to help a trader obtain information about the overall state of the market and attractiveness of a specific cryptocurrency.

An investor can get confused in choosing between fundamental and technical trading as an investment strategy, but considering combining both approaches may provide the best opportunity to draw a complete investment picture with the most profits. Both trading approaches can create a confluence of information that should give a better investment than either used alone.

Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. None of the content on Crypto Folds is investment advice nor is it a replacement for advice from a certified financial planner. Please do your own research before purchasing or investing into any cryptocurrency.  

Revolutionize Your Crypto Trading Experience with Agrifi's Decentralized Exchange (DEX)

By Press Release • March 26, 2025
Decentralized Exchanges (DEX) have become a game-changer for crypto enthusiasts in the fast-paced financial world we’re in today. These platforms provide enhanced security, transparency, and full control over digital assets. Agrifi is at the forefront of this innovation, introducing an advanced DEX where users can seamlessly trade AGF tokens with popular cryptocurrencies like USDT, ETH, and MATIC, as well as participate in liquidity provision to earn valuable LP tokens.  Seamless Crypto Trading Agrifi’s Decentralized Exchange allows users to effortlessly swap AGF tokens for major cryptocurrencies like USDT, ETH, and MATIC. Unlike traditional exchanges, our DEX offers a secure, transparent, and censorship-resistant trading environment. Transactions occur directly between users, eliminating the need for intermediaries and significantly reducing transaction costs. Even newcomers can navigate our intuitive and user-friendly interface with ease. With just a few clicks, you can trade tokens securely, optimizing the flexibility and efficiency of your crypto portfolio. Since this decentralized method ensures your funds remain under your control at all times, it greatly minimizes the risk of centralized hacks or losses. Earn Rewards Through Liquidity Provision Beyond simple trading, Agrifi gives users a unique opportunity to earn passive income by providing liquidity to the exchange. When users deposit token pairs (such as AGF-USDT, AGF-ETH, or AGF-MATIC) into our liquidity pools, they receive Liquidity Provider (LP) tokens in return. These tokens serve as proof of participation and entitle holders to a share of transaction fees generated within the pool. Providing liquidity not only offers a steady stream of rewards but also strengthens the exchange’s stability and functionality. This helps traders experience minimal slippage and smooth transactions, making liquidity provision a mutually beneficial endeavor that supports both individual users and the broader Agrifi ecosystem. Why Choose Agrifi's DEX? Agrifi isn’t just another decentralized exchange—it’s a complete financial ecosystem built on sustainability and long-term value creation. Our DEX operates on robust blockchain technology, ensuring top-tier security and transparency. Thanks to decentralized governance, our platform continuously evolves to meet community needs, fostering fair, user-driven decision-making. Blockchain integration guarantees that every transaction is immutable, transparent, and secure. You can trade with confidence, knowing that your investments are safeguarded, verifiable, and entirely under your control. Join Our Growing Community Stay connected and informed by following Agrifi on our official platforms: Telegram : https://t.me/agrifi Twitter : https://twitter.com/agrifi_tech Facebook : https://facebook.com/agrifitech Instagram : https://instagram.com/agrifi.tech Community Telegram : https://t.me/agrifi_official Start Your Decentralized Trading Journey Today! With Agrifi’s DEX, experience the future of decentralized finance today. Trade securely, earn rewards through liquidity provision, and join a thriving community committed to innovation, transparency, and sustainability. Don’t miss out on this opportunity to grow your crypto portfolio with Agrifi’s cutting-edge DEX platform. Explore now and be part of the decentralized revolution!

Codego Launches CDG: New Plug-and-Play Devices for Effortless Daily Passive Income

By Press Release • March 26, 2025
The CDG project has officially launched, introducing an innovative solution that enables everyone to earn passive income directly from their homes. With just a compact device, a power outlet, and an internet connection, CDG simplifies earning predictable, reliable, and hassle-free daily income.  Earn Daily Rewards Effortlessly CDG offers two user-friendly models: CDG Home and CDG Power Home , which provide GPU computing power to a decentralized computing network. In return, device owners receive daily rewards in the form of CDG credits. CDG credits operate similarly to loyalty points and can be conveniently exchanged for fiat currency through the easy-to-use CodegoPay app , available on both iOS and Android. Each credit maintains a guaranteed minimum value, ensuring consistent and predictable earnings. Why CDG is Different The concept of sharing computing resources isn't new, but CDG's implementation is uniquely accessible and efficient. CDG devices are incredibly energy-efficient: the CDG Home model consumes just 10 watts , and the powerful CDG Power Home uses only 30 watts . Designed for home use, these devices are compact, quiet, and discreet, seamlessly blending into any living space. Device owners begin generating income immediately upon activation. The CDG Home device generates a minimum of $5 per day , while the CDG Power Home offers at least $20 per day . Setup is straightforward, requiring no technical expertise. Simply plug the device in, connect through the CodegoPay app, and instantly start earning. Quick Start Guide Getting started with CDG is easy: Download the CodegoPay app (Android or iOS ), and open your account to receive your personal IBAN instantly. Order your preferred CDG device via the app or through an authorized reseller. Activate your device using CDG credits with a few simple taps. Your daily earnings will be tracked in real time within the app. Pricing and Activation CDG offers two versatile device models: CDG Home : Priced at $2,500 , requiring 10,000 CDG credits for activation. It consumes only 10 watts and delivers daily rewards of 50 CDG credits , valued at a minimum of $5 per day . CDG Power Home : Available for $10,000 , requiring 40,000 CDG credits for activation. It consumes just 30 watts , providing daily earnings of 200 CDG credits , equivalent to at least $20 per day . Earn Even More with Referrals CDG users can further increase their income through a rewarding referral program: Earn €150 cash for every friend who purchases a CDG Home , plus your friend receives a €50 discount . Receive €600 cash for every friend who purchases a CDG Power Home , with your friend enjoying a €200 discount . Referral bonuses are paid directly to your bank account via the CodegoPay app. Contributing to a Growing Global Network By owning a CDG device, users actively contribute to a decentralized GPU network, essential for industries like gaming, artificial intelligence, and mobile services. As the global demand for GPU computing power continues to grow, the potential value of CDG credits increases, providing additional long-term value. About CDG and Codego The CDG project was developed by Codego , a fintech leader providing secure, comprehensive digital banking solutions. Codego offers core banking, prepaid and debit card issuance, and European IBAN accounts, supporting more than 12 fiat currencies and over 500 cryptocurrencies . Thanks to Codego’s advanced financial infrastructure, users enjoy a seamless experience in managing their CDG devices through the CodegoPay app, which includes integrated IBAN accounts, secure real-time earnings tracking, and compliance with the PSD2 regulatory standards. Learn more about Codego and the CDG project: Codego (Website) | CDG (Website) | X (Twitter) | Instagram | LinkedIn | TikTok Discover how CDG transforms passive income generation—simple, efficient, and rewarding from day one.

BTCC Exchange Enhances VIP Program to Empower High-Volume Traders Worldwide

By Press Release • March 25, 2025
BTCC , one of the world’s longest-serving cryptocurrency exchanges, is thrilled to announce a significant revamp of its VIP program, specifically designed to cater to high-volume traders among its 6.8 million users globally. This initiative highlights BTCC’s continued commitment to delivering an exceptional trading experience through increased efficiency, exclusive rewards, and personalized support.  Founded in 2011, BTCC has been a trusted name in crypto, offering reliable and user-friendly trading services across the globe. The newly enhanced VIP program ushers in a new era of perks, prestige, and personalization for elite traders seeking more than just competitive fees. The revamped VIP program introduces several exciting features: Competitive Trading Fees : VIP futures trading fees have been reduced to an industry-leading rate of as low as 0.007%. Enhanced Liquidity : SVIP users can now withdraw up to 2,500,000 USDT daily, catering to the demands of high-volume traders. Generous Upgrade Rewards : Each upgrade in VIP levels unlocks rewards worth up to 2,500 USDT, including trading vouchers and exclusive merchandise. 24/7 Personalized Support: VIPs enjoy round-the-clock access to dedicated account managers for tailored trading assistance. Community Prestige: Users receive a custom VIP badge that reflects their status within the BTCC community. Luxury Experiences : SVIP users will be randomly selected to win premium vacation packages to destinations like the Maldives and Bali. VIP Status Protection : SVIP users benefit from a grace period that prevents immediate downgrades, even during periods of reduced trading activity. "We’re incredibly excited to launch this revamped VIP program, which truly puts our users at the heart of everything we do,” expressed Alex, Head of Operations at BTCC. “This revamped program is all about empowering high-volume traders. With tailored services, competitive fees, and exclusive rewards, we are dedicated to providing the tools and support that our most active users need to thrive in the fast-paced crypto market.” BTCC’s enhanced VIP offering isn’t just a loyalty program, it’s a reflection of the platform’s ongoing mission to create a secure, rewarding, and dynamic trading environment for users around the globe. About BTCC Founded in 2011, BTCC is a leading global cryptocurrency exchange with the vision to make crypto trading reliable and accessible to everyone. With a strong presence in over 100 countries and regions and a user base of over 6.8 million, BTCC continues to deliver innovation, security, and unmatched user experience in the cryptocurrency world. Official website: https://www.btcc.com/en-US X: https://x.com/BTCCexchange Contact: press@btcc.com

FYBN Token Kickstarts the Future of Gas Station Financing with Impressive Growth

By Press Release • March 25, 2025
FYBN Token , a Solana-based cryptocurrency, announced a 395% increase over the past 30 days. Despite the adverse market trends, FYBN reached $0.0031 , showcasing an increasing popularity across the broader crypto community. The FYBN Token aims to revolutionize real estate and gas station crypto payments. You can buy FYBNAPP tokens on Coinbase Wallet or Phantom Wallet.  FYBN is a token built on the Solana blockchain. It caters primarily to gas station businesses, providing them with a more efficient, cost-effective, and globally accessible source of liquidity. These businesses can leverage FYBN for property acquisition and operational funding, thus accessing new ways to grow and prosper. A recent FYBN use case example is the first-ever gas station purchase using cryptocurrency. The $500,000 Atlanta transaction, which saved over $30,000 in commissions, settled instantly and without hefty fees. More importantly, it showed that such transactions can occur via blockchain technology, thus eliminating traditional banking delays. The FYBN Token comes with a comprehensive suite of utilities and benefits for real-world businesses. For example, using FYBN helps investors streamline gas station and real estate purchases. It also saves them costs by eliminating broker fees. Moreover, FYBN harnesses the power of the Solana blockchain and smart contracts to reduce the legal costs generally involved with such transactions. FYBN Token also ensures nearly instant transactions, with settlements occurring within minutes. Lastly, gas stations using FYBN can reduce credit card fees and attract tech-savvy customers. All these benefits help reshape gas stations' financial landscape, enabling them to thrive in an increasingly competitive environment. With the acceptance of the FYBN token in the gas station and Cstore community the price is expected to rise and technical indicators suggest that price would cross $1 by end of this year. That would make About FYBN Token FYBN is a rapidly developing enterprise, with over $817 million in executed deals and 300+ gas stations sold in the last 6 years. The project aims to redefine business operations by merging blockchain innovations with real-world applications. Behind the FYBN token is an expert team with diverse backgrounds in technology, finance, and social impact. Its goal is to push the boundaries in business and transform the world with the power of blockchain. Besides helping gas station businesses reinvent themselves, FYBN empowers charitable donations with traceable transactions. This way, it gives back by making philanthropy transparent and efficient. You can learn more about FYBN Token at these links: Website | (X) Twitter | Telegram | LinkedIn | Coinbase You can email FYBN at support@fybn.app or call them at +1 (408) 856-5031.
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