## Why Traders Fail: They Ignore Fundamental Analysis

How many beginners enter the cryptocurrency market looking only at charts and candlesticks? Probably many. But the truth is that the best investors do not rely solely on that.

The **Fundamental Analysis (FA)** goes far beyond the numbers on paper. It seeks to answer the fundamental question: does the price you are paying truly correspond to the real value of the tangible or intangible asset you are buying?

### What Really Matters in the FA

While most traders are glued to charts, FA analyzes factors that rarely appear in feeds. We are talking about business management, reputation, market positioning, market capitalization, and yes, even macroeconomic factors that affect the entire ecosystem.

The objective is not complicated: to find out if an asset is being sold for much less than it should be (undervalued) or if the inflated price does not justify the real potential (overvalued).

### The Difference That Nobody Comments On

There is a chasm between **Fundamental Analysis** and **Technical Analysis (TA)**. While FA delves deep into microeconomic and macroeconomic conditions — trying to understand how external factors shape a project's performance — TA is stuck in the past of charts and historical volumes.

TA seeks to predict price movement through past trends. FA, on the other hand, wants to know if the price makes sense given everything it knows about that asset.

### The Secret of the Winners

Here is the plot twist: you don't need to choose a side. The most successful traders use both in context. FA provides the solid foundation (is this project really worth it?), and TA helps with the timing (when to enter and exit?).

This balanced approach works for practically any asset — from traditional stocks to cryptocurrencies. The crypto market, in fact, is where fundamental analysis becomes even more important, because here the volatility is extreme and understanding what is behind the project is a differentiator.

The conclusion is simple: ignore Fundamental Analysis at your own risk. The data doesn’t lie — and it is never based solely on historical patterns.