Fundamental Analysis Guide for Cryptocurrency
3 min read
Are you looking for an advantage over the vast majority of cryptocurrency traders? Simple. Master the fundamental analysis.
Regardless of how much experience you have in investing, the world of cryptocurrencies is something else entirely. The devil is always in the details.
Fortunately, the Crypto and Blockchain research space has evolved tremendously in recent years. A simple Web search with “project review” can reveal if the cryptocurrency you are planning to invest in has been examined by unbiased specialists. You can also try to add “scam” or “fraud” terms to see if there are some bad reviews.
What is it?
Understanding the project is essential if you plan to invest in a cryptocurrency. Feel free to eliminate the project immediately if the summary section is auto-generated or does not exist at all.
https://coinmarketcap.com/ (Overview, Markets, More Info)
https://www.coingecko.com/ (Overview > Social, Developer)
https://cryptorank.io/ (Token Sale, ICO, Funding, Tokenomics*)*
Check the official website of the project (domain, CMS, theme, SSL)
What is the reason behind the project?
Try to question the reason behind the project.
Does it try to find a solution to a real-world problem?
Can this project be made without blockchain technology?
Which are the real-world industries this project aims to disrupt?
How regulated is this market?
How is the white paper?
Does it have all the necessary parts? Summary, roadmap, team, sales, tokenomics, partners, etc.
How many languages it has been translated to?
How detailed are the technical explanations?
Are there any spelling, grammatical errors, typos, or unformatted layouts?
Try to look past buzzwords like ‘decentralized’, ‘revolutionize’, ‘fastest’, ‘cheapest’, and ‘scalable’ etc.
How detailed is the roadmap?
When did the project start?
Were they able to implement the features on time?
Do they have detailed and realistic targets?
Who is the team?
Do team members have biography and links to their social media profiles like LinkedIn, Twitter, GitHub, Dribble, etc.?
Do team members have any successful projects in the past?
How is the technology and code quality?
Is it a coin or token?
Is it a fork? If so, What are the differences, and why it is needed?
Is it open source?
How many people contribute to the project on GitHub? (Stars, Forks, Watchers, Developers)
Does the project have its client, wallet, or application? Do they work smoothly?
Does the project have a blockchain security audit?
How are the competition and marketing?
What stage is the project at? (Idea, MVP, Beta, Production)
How is the initial supply allocated? (ICO, Private Sale, Team, Marketing, Development, Rewards, etc.)
Who and what coins are the competitors?
What distinguished this project from its competitors?
What are the rewards? (Staking, Discount, Premium access, etc.)
How is the situation with the funds, and investors?
How big is the community?
Must have communities: Telegram, Reddit, Twitter, Discord
Check pinned posts on Telegram
Validate the “Joined” date on Twitter and go through tweets.
Check the YouTube handle, design, interviews, etc.
Check the email address and contact forms
Check the trends
Get the news from different sources
All information contained in this document is not to be considered financial advice of any kind, and you should obtain independent legal, financial, taxation, and/or other professional advice in respect of any decision. It is always recommended that you do your own research.
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