Feb 17, 2023
Discover 10 Steps to Crypto Fundamental Analysis for Sound Investing
Fundamental analysis is the process of finding an asset’s intrinsic value, with the goal of determining whether it is overvalued or undervalued. This is done to inform investment decisions, but in the crypto space, it can be difficult to do due to the lack of historical data. That’s why it’s important to look at the right set of factors to determine a project’s fundamental value before investing. Here are 10 steps to help investors do just that.
1. Read the White Paper: This document gives an intentional, detailed overview of a project. It should explain the project’s goals, use cases and distribution, the team’s vision, the technology behind the token, plans for upgrades and new features, and how the token provides value to users.
2. Assess the Claims: Be skeptical and ask hard questions. Have the tokens been distributed as promised? Are they meeting the roadmap expectations? Are they inventing a problem just to solve it? What are other people saying about it? Are there any red flags? Do the goals seem realistic?
3. Look at Competitors: Nearly 40% of cryptocurrencies that were listed in 2021 no longer exist, so it’s important to consider whether the project’s use case is viable and wanted. Identify competing projects and examine existing projects this new one might replace.
4. Look at the Team: The project is only as good as the people behind it. Read the white paper for information about each team member, but do some independent research too. Have they worked on other successful projects? What are their credentials? Are they reputable members of the crypto community?
5. Look at On-Chain Metrics: Data can be pulled from websites or APIs to inform investment decisions. Consider transaction count, transaction value, active addresses, fees paid, hash rate, and staking.
6. Look at the Tokenomics: Invest in projects that create useful tokens, and consider how the market will embrace it to create profit opportunities.
7. Market Cap, Trading Volume and Liquidity: These financial metrics include market capitalization, trading volume, and liquidity.
8. Community: A community behind a project can help the token appreciate in value, so consider if the community is active and excited, if there are a lot of shilling accounts, and if sentiment is good.
9. Marketing: With so many cryptocurrencies to choose from, the team behind the project must actively market the token to stand out. Consider if the team is marketing the product well, if they have a dedicated marketing team, and if they are increasing market share.
10. Test the Product: If the core product is available, test it out. This can help inform an investment decision, as if the platform is hard to use or creates more problems than it solves, it may be wise to steer clear.
These 10 steps can help investors assess the profit potential of any asset before investing or trading. With the right information, investors can make informed decisions and potentially find success in the web3 space.
When it comes to NFTs, it is important to consider the marketing potential of the asset. NFTs are unique digital assets and can be used for a variety of promotional activities. From giveaways to influencer campaigns, NFTs can be used to engage with the crypto community, increase brand awareness, and drive sales.
NFTs can be marketed through social media, such as Twitter, as well as through NFT marketing agencies. These agencies specialize in helping companies create and promote their NFTs. They can provide a variety of services, such as NFT design, marketing strategy, and promotion.
As the crypto space continues to grow, so too will the demand for NFTs and the need for NFT marketing. Companies looking to get involved in the space should consider working with a web3 agency to help them maximize the potential of their NFTs and ensure their success.
Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
