How to perform fundamental analysis for cryptographic investments

The world of cryptocurrency has exploded in recent years, with the prices that have increased to the stars and precipitated at any time. Consequently, investors seek increasingly 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 cryptocurrency investments, focusing on the performance of fundamental analysis. By understanding the key factors that shape the market, you can make more informed investment decisions and maximize your yields.

What are the fundamental factors in cryptographic investment?

Before immersing yourself in the details of the fundamental analysis, it is essential to understand what is the movement of prices in cryptocurrency guides. The main controllers include:

• Absolute and questions : The balance between buyers and vendors determines the general market trend.

• Institutional support : The main institutional investors, such as coverage funds and the family office, may have a significant impact on the market.

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• Regulatory environment : Government policies and regulations related to cryptocurrencies can significantly affect their adoption and value.

• Network effects : Since multiple users bind to a particular cryptocurrency, its value increases due to the growing number of potential users.

Passo-Passo Guide to perform fundamental analysis for cryptographic investments

Now that we have identified the main fundamental impulse factors in the movement of prices in cryptocurrencies, we describe a step -by -step guide on how to perform fundamental analysis:

• Search and understand cryptocurrency

* Discover the White Paper, the equipment, the road map and the current position of the project market.

* Family with the case of using cryptocurrencies, tokenomic and potential applications.

• Evaluate the project development team and the government

* Evaluate the experience and history of key team members, such as consultants, developers and auditors.

* Check the government structure to guarantee transparency and responsibility.

• Evaluate the feeling of the market and the adoption rate

* Analyze the online forum, social networks 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

* Look for government policies and regulations that affect cryptocurrencies in your region.

* Regulatory repression search signals in specific projects or markets.

• Evaluate the effects of the network and scalability

* Evaluate the network’s capacity to admit a big user users, including scalability and safety characteristics.

* Investigate the capacity of the project to maintain its competitive advantage.

• Evaluate market capitalization, price and volatility

* Compare market capitalization with the pairs of the sector to evaluate the relative value.

* Analyze prices volatility by technical indicators, such as RSI or Bollinger bands.

Tools for fundamental analysis

To facilitate fundamental analysis, consider the following tools:

• Cryptocurrency exchange platforms : Use these platforms to search and analyze data, trends and market feelings.

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