**Both.**
At first , I recommend looking into a coin using fundamental analysis.
These are some simple general questions you could ask yourself :

**– What is the coin about?**
I mentioned this in my previous post. Do not invest in coins you don't understand.
I know it's tempting to put your money into a coin ,you know nothing about, that has risen 200% in a few days. Your emotions will tell you to buy the coin because everyone is buying it. Please don't think with your emotions. Think with your brain and read the whitepaper of your coins.

 **– Is it useful?**
There are a lot of useless coins out there. Trumpcoin , kanyecoin , putincoin....
Ask yourself , would you or anyone else really use it?

**– Does it have competition?**
On the oher hand , there are also a number of really interesting coins.
But always keep in mind that there is a lot of competition in the world of cryptocurrency.
One could replace the other.

**– Working product?**
I have read a lot about Cardano. The whitepaper looks incredible. Lots of amazing idea's.
But it has no working product. It's all about what the coin could do in the future. Not the present.
I invest in BTS and STEEM (well duh...). Why?
Because they have a working platform and people actually use it.
Most crypto's don't even have a working product.

Tip : Block'tivity is a website that shows which coins are actually being used. It's no surprise STEEM and BTS are on top. [https://blocktivity.info](https://blocktivity.info/)
![enter image description here](https://i.imgur.com/l0Hg9W3.png)

Usually it takes some time and work to answer these questions. But it's worth it.
The next step of fundamental analysis is quantitative research.
In regular stock markets we have a TON of information to analyze a company.
If I want to invest in Apple I will look into the company's financial situation.

– Revenue (forecasts)
– Expenses
– Cashflow
– Debts
– Financial ratios
– ...

Those are just a few things I will be looking for. I won't go in detail because all of this...
is useless in cryptocurrency.
What data can we use?
Volume , marketcap , price , supply... that's it!
You can't build an investment strategy on this.
Most people analyze a coin based on what it could do in the future. This is dangerous because in the future 90% of the market will probably be gone.
This is where fundamental analysis fails and technical analysis comes into play



## Technical analysis

The cryptocurrency market is an immature market. A lot of people who invest in crypto are young inexperienced traders. FUD and FOMO clouds their judgement. They panic and sell at the bottom and buy at the top. They invest with their emotions. This is basic psychology. And psychology is a big part of technical analysis. We can use this to our advantage if we use the right indicators and recognize the right patterns.
Basically as a technical trader we want to identify what the crowd is doing and where they are headed!

There are a lot of TA analysts here on Steemit who are probably more efficient at doing this than me so I will only give u some TA basics.

**– The trend is your friend!**

![enter image description here](https://i.imgur.com/cBknrCt.png)
This is probably one of the most famous quotes in TA. And it's very important.
Bitcoin is rising but it's still in an overall downtrend. Don't forget this.
Build up cash when Bitcoin's future is uncertain. We are not out of the woods yet!

On the other hand , I don't recommend shorting Bitcoin when we're in a uptrend. You could lose a lot of money. Real quick.

Follow the trend!

**– Support and Resistance**
When a coin reaches a resistance , this could be a natural resistance like a 1000$ , chances are that it will bounce back. The more a resistance is tested , the stronger it gets.
If it breaches the resistance , this will become a new support level.
The more a support is tested , the stronger it gets.

**– Volume**
Don't ever forget to look at volume. This is probably one of the most important indicators.
It tells you something about the power of an uptrend. If price is rising but volume is declining , something might be up. The trend could be changing. Normally a long term uptrend is followed with rising volume.

Besides volume , there are hundreds of indicators but remember they indicate , they do not dictate!


## Summary

The best trading strategy is to use fundamental and technical analysis combined.
Fundamental analysis can tell you something about the coin itself. Technical analysis can tell you where the coin is headed. 
But even if you do your research thoroughly , it is not right all the time.
There are some situations you can't predict. Things like exchanges being hacked , whales that pump and dump a coin , regulations , ….
This is not a holy grail. But it can and will give u more profit when you don't have a clue how to invest.