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Crypto Trading: Technical Analysis vs Knowledge-Based Trading


Believe me, this is the most thorny topic if you are new to trading in cryptocurrencies. Which one of them is better than the other, technical analysis or trading depending on experience and knowledge?

What are Technical Analysis and Knowledge-Based Cryptocurrency Trading?

They are two ways that crypto traders used to be more positive about price changes.

Technical analysis depends on charts only regardless of any other factors.

While knowledge-Based trading depends on previous changes in the market and the news.

What is the real difference between them?

YouTubers and influencers cracked my head with technical analysis, with chart lines, candlesticks, resistances, and breaking resistances. The most important thing about the matter is that they are deceiving you, evading responsibility in a cunning way, and deceiving you while you do not know it, by telling you that if the price of Bitcoin breaks through the next resistance, we will witness a sharp rise in its price, but if it drops below the next minimum resistance, we will witness a sharp decline in the price. Naturally, the current price is between the two so-called resistances. You don't want any additional confusion on top of what you already have, do you?

Well, what are we going to do about it? We must have knowledge, we must study the field well before entering it, and we must listen to the advice of experts, but we must distinguish between real experts and consumer or paper experts who work a YouTube channel and film themselves and make movements and clowns. They are only actors who want To attract you to their channels to get subscriptions, follows, and likes, which will generate a profit for them if a platform or currency comes and gives them money to promote it. And believe me, they are ready to promote any failed currency if they get some money.

By the way, I am an engineer and have a master’s degree in economic planning. I am also a son of Damascus. I wrote a previous article about the people of Damascus being natural merchants. Some of these merchants, regardless of whether they are good or bad people, know how to make money despite the fact that many of them are illiterate. They almost do not read or write, and many of them have IQs that are not high at all. Some have almost no IQ, but they are able to make money. Because they learned it by nature, just as some people learn to ride horses from their families. They rely on experience and studying market movements. The real market is in commodities, not in cryptocurrencies.

They even study the consumers who enter their stores, study their body language, and look at them as piggy banks that give money and not as people. This may be a bad thing sometimes, but it is the ideal way to make money and profit. Here they think objectively, away from emotions and based on experiences, since these experiences are science. There is always a pattern and the pattern is repeated, and the more the incident is repeated, the more clear and distinct the pattern becomes. Believe me, this is taught in economics.
The market has movements and fluctuations, and market makers (whales) are able to change the market in an instant. They even have bots that raise the market. Don't imagine that they are sitting and investing in a currency. Rather, when they want to raise the price of a currency, they raise it instantly. When they want to bring down the value of the entire market, they go down in minutes and perhaps in hours. You will get surprises that you had never imagined in your life.
  You should always be prepared for market fluctuations and never look at what technical analysis tells you. This is personal advice from me because technical analysis depends on numbers, and numbers are an essential part of the economy. But economics is not an applied science like engineering, and mathematics studies ideal cases of phenomena. Rather, it studies practical cases only. Charts talk about what is happening instantly in the market, the liquidity of each currency, its market value, and the number of coins of each currency. And about the partnerships of each currency. About its project and its owners. They, I mean its owners and the team working on it, are the greatest indication of the strength of the currency.

Believe me, unexpected market fluctuations can sometimes be predicted. You must have an alternative plan in any case, and you must rely on logic and rely on the idea that you are buying a commodity at one price in order to sell it at another price. Do not rely on numbers or calculations only, but rather rely on it being a buying and selling trade.

There is also something you should keep in mind that you are not buying the currency that you love, love the look of its logo, and love the name of it. Or you buy zero currency, of which you find thousands upon millions of pieces in your wallet. You should buy your currency in USDT and not think of currencies as a number. Rather, you think of your investment as a percentage: I put in an amount of money, so it must be multiplied two or a thousand times, not to increase the number of currencies I have.

One of my friends, who is a doctor, used to make fun of me and tell me: You rely on luck and do not rely on scientific foundations in your choices.
So I told him your words are wrong, you are the one who was laughed at and brainwashed by propaganda influencers and YouTube. You are the victim of the media. I am the one who learned and lost a lot, suffered many shocks, and felt great cramps in my stomach and states of panic before I completed my self-education in the field of cryptocurrencies. And now, with all my experience, I am still affected by market movements and the broadcast of negative and positive news, but to a much lesser extent than before. . And believe me. All types of technical analysis and activity can change all their data with one tweet from a person, Kaylon Musk, for example, just one tweet! It spread like wildfire, garnering thousands of likes and retweets. Suddenly you find that everything the technical analysts advised you has been turned upside down.

This market is like a battlefield, as there are two parties, either a loser or a winner, and there is no third party for them. War depends on deception and plans, like a Trojan horse. Do not be easily docile, but rather be experienced and have an open mind.

Thank you for reading this humbling scientific study!