The crypto market has emerged from a little-known hobby among enthusiasts to disrupting the entire financial domain. This has brought a wave of new investors looking to get into this fantastic opportunity. But with plenty of projects available, it can be difficult for a newcomer to understand how to analyse them. So what is the best way to evaluate crypto projects?
Understanding Crypto Fundamental Analysis
Crypto fundamental analysis is a method used to evaluate a crypto project’s underlying value by examining its intrinsic factors. This type of analysis is like traditional financial analysis used for stocks and other financial instruments, but it also considers the unique characteristics of crypto tokens.
The goal of fundamental analysis is to find whether a particular token is overvalued or undervalued compared to its “true” value. This involves looking at many factors like the project’s technology, team, roadmap, market demand, and adoption rate.
Understanding these factors is used to find the long-term viability of a project. It also helps determine whether you should invest in a token or sell it if it is overvalued. But it is crucial to understand that the crypto market is volatile. Coins may experience…