A crypto trading thesis is a set of assumptions or beliefs that a trader holds about the market and how it behaves. These assumptions guide a trader’s investment decisions and form the basis of their overall trading strategy. A trading thesis can be based on technical analysis, fundamental analysis, or a combination of both.
A technical analysis-based trading thesis may assume that certain chart patterns or indicators can predict future price movements. For example, a trader may believe that a certain moving average crossover is a reliable signal to buy or sell a particular cryptocurrency.
A fundamental analysis-based trading thesis may focus on the underlying technology, adoption, or governance of a particular cryptocurrency. For example, a trader may believe that a certain blockchain protocol has a strong team and solid development roadmap, and therefore, the cryptocurrency built on that protocol is undervalued and poised for future growth.
A trading thesis that combines elements of both technical and fundamental analysis may focus on identifying a cryptocurrency that is undervalued based on both its technical chart patterns and its underlying technology and adoption.
It’s important to note that a trading thesis is not a guarantee of future performance and can change over time as market conditions and a trader’s understanding of the market evolves. A trader should regularly review and update their thesis as needed, in order to stay aligned with the latest market conditions and trends.
