How to Analyze a Cryptocurrency Using Fundamental Analysis
Investing in cryptocurrencies requires careful research and evaluation of all available metrics. Most projects provide ample information about the purpose of the cryptocurrency, token economics, the team behind the project, and its development to date. Using a combination of quantitative and qualitative factors, you can derive a view of cryptos using fundamental analysis.
A myth among new entrants is that cryptocurrencies cannot be valuated based on fundamental analysis due to high market volatility. However, even though the asset may be subject to the whims of global traders, one can still form an educated opinion on its value.
Understanding fundamental analysis helps you evaluate whether a crypto is worth buying or selling. In this article, we’ll show you how to analyze cryptocurrency using fundamental analysis, including the key factors to consider, and look at how cryptocurrency analysis is different from traditional asset analysis.
Key Takeaways: