A great fundamental analysis begins with a thorough investigation of the issues at hand. Knowing the right background information about the cryptocurrency you're interested in can make or break your investment. Some of the points to determine are as follows :-
INTRINSIC WORTH
Our fundamental analysis seeks to determine whether the cryptocurrency in which we are investing is undervalued or overvalued. This gives us a directional bias and distinguishes between good and bad projects in the short and long term.
GOAL
The first question you should always ask is, "What is the purpose of the cryptocurrency?"
Is it required, and is it in high demand? The greater the audience size, the greater the potential value.
Check out the website, social media, or Google it.
TEAM
This is our first real confirmation of how to distinguish between good and bad.
Every project can claim to revolutionize the world, but that doesn't mean it's true or that it's their true purpose (scammers).
Examine the team and their previous experience. LinkedIn is a fantastic resource!
Wondering why teams are key to any project? We've got you covered -
https://aicinvestors.com/article/why-a-crypto-projects-team-is-critically-important/
RELEASES
What have they done so far, and what have they accomplished?
A legitimate company behind the cryptocurrency has been hard at work to ensure the project's success.
A bad project (or a scam) promises the world but delivers nothing.
PARTNERSHIPS
A great project is usually recognized by larger brands or other industry players who want to collaborate with them.
Big names will not jeopardize their reputation by partnering with the wrong companies.
Always confirm the partnership with both parties!
ROADMAP
Price increases are common when certain projects reach new milestones. If nothing happens soon, the best cryptocurrencies may not see a significant increase in value.
Smart contracts
Product introduction
Expansion
Exchanges
Always keep an eye out for the latest updates!
TOKENOMICS
There is a lot of misinformation about the project's product and the cryptocurrency itself. Companies can have a great product without requiring the token. However, we are investing in the cryptocurrency rather than the product. Make certain that it is required!
Wondering why is tokenomics important? we've got you covered -
https://www.ourcryptotalk.com/post/how-important-is-tokenomics
SUPPLY
Every market is governed by the laws of supply and demand. Cryptocurrencies are no exception. When a large number of tokens are yet to be released, the price generally falls.
More supply means demand needs to keep up so you want the circulating supply to be high preferably.
WHITEPAPER
The whitepaper is a comprehensive document that describes every aspect of the project. This can be confusing and technical at times. A YouTube tutorial or a written review can be beneficial.
COMPETITION
Is your project the first of its kind or a forerunner? While it is not always necessary for success, having the first mover advantage is preferable. Both $BTC and $ETH are not the cheapest or fastest coins available, but they continue to reign supreme.
MARKET CAP
The best investment is not always the best project. Great recommendations may have already achieved multibillion-dollar status and, as a result, may no longer provide the same returns. You want to find the Apple, Google, and Amazon of cryptocurrency before they do.
RED FLAGS
The goal of your fundamental analysis is to compare advantages and disadvantages. A minor flaw does not make a project bad, nor does a minor plus make it great. Just make sure the pros outnumber the cons. If you're still unsure, don't do it.
If you are into crypto and looking to hold up discussions, join communities and network better with traders and crypto enthusiasts from all over the globe, you should definitely check out -
https://app.ourcryptotalk.com/