Fundamental Analysis

Fundamental Analysis (FA) is a method in which you research the underlying value of an asset by looking at aspects such as the technology, potential usage, growth prospects and other indicators in order to decide investing strategy. Fundamental analysis will help you analyze if an asset is overpriced or underpriced and decide its intrinsic value. Fundamental analysis seeks to understand the future potential of an asset based on more than just prior performance. In this regard, FA is more of a big picture approach towards analyzing an asset.

FA also seeks to understand the industry-specific market and the future potential of that asset in the market. Fundamental Analysis in cryptocurrencies is significantly different from that of traditional assets as it is not issued by corporations. Instead, FA in cryptocurrencies focus on the asset’s target market, team or project creators, White paper of the asset, and other surrounding factors.