How to conduct fundamental analyzes for cryptographic investments
The world of cryptocurrency has exploded in recent years, with the prices that have risen to the stars and precipitate at any time. Consequently, investors seek more and more reliable methods to evaluate the potential services of their investments. A crucial aspect of the fundamental analysis is to identify the underlying drivers that influence the movement of cryptocurrency prices.
In this article, we will deepen the foundations of investments in cryptocurrency, focusing on the conduct of fundamental analyzes. By understanding the key factors that shape the market, you can make more informed investment decisions and maximize your returns.
What are the fundamental factors in cryptographic investment?
Before immersing yourself in the details of the fundamental analysis, it is essential to understand what the movement of prices in cryptocurrencies guides. The main drivers include:
- Absolutes and question : the balance between buyers and sellers determines the overall trend of the market.
- Institutional support : the main institutional investors, such as Hedge Funds and Family Office, can have a significant impact on the market.
3
- Regulatory environment : Government policies and regulations relating to cryptocurrencies can significantly affect their adoption and value.
- Network effects : Since multiple users join a particular cryptocurrency, its value increases due to the growing number of potential users.
Passo-Passo guide to conduct fundamental analyzes for cryptographic investments
Now that we have identified the main fundamental driving factors in the price movement in cryptocurrencies, we outline a step-by-step guide on how to conduct fundamental analyzes:
- Search and understand the cryptocurrency
* Discover the White Paper, the Team, the Roadmap and the current market position of the project.
* Family with the case of use of cryptocurrency, tokenomics and potential applications.
- evaluates the project development team and governance
* Evaluate the experience and track record of key members of the team, such as consultants, developers and auditors.
* Review the governance structure to ensure transparency and responsibility.
- Evaluate the feeling of the market and the adoption rate
* Analyze online forum, social media and news to evaluate the feeling of the market.
* Evaluate the level of institutional support through important exchanges or risk capital companies.
- Analyze the regulatory environment and compliance
* Search for government policies and regulations that affect cryptocurrencies in your region.
* Search signs of regulatory repressions on specific projects or markets.
- evaluates the effects of the network and scalability
* Evaluate the capacity of the network to support a large users of users, including scalability and safety features.
* Investigate the capacity of the project to maintain its competitive advantage.
- Evaluate market capitalization, price and volatility
* Compare the market capitalization with the peers of the sector to evaluate the relative value.
* Analyze prices volatility by technical indicators, such as RSI or Bollinger bands.
Tools to conduct fundamental analysis
To facilitate fundamental analysis, consider the following tools:
- Cryptocurrency exchange platforms
: use these platforms to search and analyze market data, trends and feeling.
2
3