#التحليل_الأساسي


Fundamental analysis is a methodology for assessing the value of an asset (whether it is a cryptocurrency, stock, or any other type of asset) by studying economic and financial factors, as well as indicators associated with the asset. The goal of fundamental analysis is to determine the true value of an asset and whether its current price is under or overvalued, which helps investors make informed decisions.



Fundamental Analysis Components




  • Founding Team:


    • Know the experience and credibility of the team behind the project.


    • Evaluate their record of previous successes.


  • Product or service:


    • What does the project offer? Is it unique or does it solve a real problem in the market?


  • Roadmap:


    • Study the project's future plans and objectives.


    • Evaluate progress against plans.


2. Market factors



  • Supply and demand:


    • Study of the quantity of assets available (supply) versus the demand for them.


    • Understand the impact of deflation or inflation on the market.


  • Market Cap:


    • The total market value of the asset (price x number of units available).


    • Compare market value with competitors to understand the size of the project.


3. Economic indicators



  • Partnerships and Adoption:


    • Evaluate the number of companies or organizations that use the asset or project.


    • Is there growth in the user base?


  • Laws and legislation:


    • Study the impact of government regulations on the future of the asset.


4. Financial analysis



  • Return on Investment (ROI):


    • Comparing past financial performance with present.


  • Liquidity:


    • Is the original easy to exchange and sell?



How is fundamental analysis applied in cryptocurrencies?


1. Project Evaluation



  • Read the whitepaper to understand the project objectives, technology used, and expected benefits.


  • Find out if the project provides unique value or is duplicative.


2. Follow news and developments



  • Stay informed about new partnerships, product launches, or technology updates.


3. On-Chain Analysis



  • Number of daily transactions.


  • Number of active wallets.


  • Mining rates (in case of mineable coins).


4. Comparing the currency to its competitors



  • Study of competing cryptocurrencies.


  • Understand the features and strengths of the project compared to similar projects.



The difference between fundamental analysis and technical analysis




















Fundamental analysis focuses on real value and uses economic and financial data, suitable for long-term investment.


Technical analysis of the asset focuses on price action and patterns, is based on charts, suitable for short and medium term trading



Advantages of Fundamental Analysis



  2. Clear long-term view: Helps the investor evaluate the long-term potential of the asset.


  4. Reduces risk: Prevents investors from falling into the trap of low-value assets.


  6. Support investment decisions: Provides rational justification for buying or selling assets.



Disadvantages of fundamental analysis



  2. Time and Effort: Fundamental analysis requires collecting and analyzing a lot of data.


  4. Uncertainty: Some projects may be unclear or lack transparency.


  6. Difficulty in predicting timing: An asset may be undervalued for a long time before its value rises.



a summary


Fundamental analysis is a powerful tool that helps investors understand the true value of assets and predict their future performance. When applied correctly, it can help in making informed investment decisions and avoiding risky investments.