Essential Tips For Fundamental Analysis of Crypto – Cryptocurrency Explained – Free Course

welcome to cryptocurrency explained in this lesson I will be discussing some of the key things that you need to look for when doing a fundamental analysis of a crypto currency or in other words what is its intrinsic value knowing what you are buying is key and no investment should be without fundamental analysis and research always take the time to do your own research on any given cryptocurrency before putting your hard-earned money into it also it is important to note that crypto s– are not stocks they do not give you part ownership in the company and most do not have a dividend model although some do also understand that many of these Kryptos are startup companies with very small user bases and very high failure rates but there are some real gems out there that are making smoking hot technology and are building real-world use cases finding them is the challenge here are some things that you must do as part of your research into the fundamentals of a cryptocurrency project the first thing to do read the white paper seriously this should give you a good overview of what the cryptocurrency is and what it aims to accomplish and how it aims to accomplish that make sure to watch out for endless buzzwords and promises of huge returns these are usually red flags and should make you think twice about investing pay as much attention to what they say as what they do not say do they say nothing about the technology or maybe they don't say anything about the business model and if so ask yourself why have they left this information out then there's the technology now look you don't have to understand the ins and outs of the coding of a project to be able to understand the technology and what people are saying about it you can almost always find good basic explanations of technological features online as well as code reviews do you think that the tech has value do you think it's actually going to solve pain points in the real world you can always check the github repository as well and you don't need to understand code to understand if there has been any activity there if there is activity that's usually a good sign speaking of tech you also need to consider does this actually need a blockchain or would it be fine without it actually needing or using a blockchain is an important question to ask what about the team who are the people behind this cryptocurrency what experience do they have are they actual people are they skilled what kind of baggage if any do they have have they had a lot of experience and failed companies what are the advisers do what are they actually bringing have big firms actually invested in the project and if no big venture capital firms have invested ask yourself why who are their partners have the partners actually confirmed that partnership in a press release or in a public social media statement how transparent is the team if you ask questions in their telegram or on other social media channels do you get a response or do you get banned for asking questions speaking of social media channels what is the community actually like is it big is it welcoming or is it filled with rational discussion or is it just moon lambo kind of stuff keep in mind as well that appearances do count for a lot does the team look professional simple question does the website make you believe that these people are going to build a high quality technological product that's going to disrupt massive industries or is it just a copy and paste generic blockchain site do the things they say on social media present a professional image all of this counts is there a market for the crypto peer-to-peer money has a big use case but a token for a cat cafe in Korea may have significantly less international demand try to determine what the market they're trying to look to affect actually looks like who are the competitors and I'm not just talking about blockchain competitors what about the real-world competitors the brick-and-mortar businesses ajayan international corporations that they are looking to compete with for example if the companies doing international remittances well they already have big competition from real world companies like Western Union is there actually room for new players to enter this market is the market even ready for this idea is the tech viable in the current market what problem does it seek to solve and do you think that this is actually a valid and a timely way to address this problem also what kind of traction do they already have our companies or people actually using their technology already how does the company plan on actually making money no really this is this is not addressed nearly enough in the cryptocurrency space but it's a really good question to ask any project that has no long-term plan to fund themselves will not last long term many crypto projects have gone broke due to bad planning and many more will another thing to consider is how open is the team regarding the financial health of the company how big is the market cap and what room does this cryptocurrency logically have to grow within its field what about the roadmap has the team actually met their previously stated goals if not why what kind of goals do they have moving forward are those goals realistic something like implementing new smart contracts by 2020 that's very doable but something like capturing 50% of the global real estate market by 2020 that's a fantasy not doable the cryptocurrency itself what is its actual purpose does it offer you discounts on a platform what features does it actually have what will give it value over time what's actually going to drive demand for that on the markets how many of the tokens or coins exist and in whose hands are those tokens and coins what is the release schedule of unreleased tokens does the crypto give you any voting rights on the platform is this even something that's important for you does it give you a dividend are there any staking rewards are there burning mechanisms in place that is where they decrease the supply over time does it have good liquidity across exchanges that is is it easy to move in and out of the cryptocurrency look out for dissenting voices online as well look to see what they're saying and try and understand was any marriage to these dissenters some people will stir fear uncertainty and doubt just for fun or because they're a competitor or they're trying to manipulate the markets be careful of these people but sometimes those dissenting voices are pointing out very important concerns that the moon Lambo kids are never going to say or simply ignore because they are blinded by greed keep an open mind to what you hear and think critically it can help you find great crypto opportunities and more importantly help you avoid making bad investments that's just a starter your critical thinking cap will be very very important in your journey of fundamental analysis make sure to check out the next video in this series to learn even more about cryptocurrency and of course feel free to post any questions that you may have down below in the comments section there you will also find my recommended list of exchanges and wallets to get signed up to and of course if you found this information useful leave a thumbs up on it you can subscribe to the channel if you are new around here long live the blockchain and peace out the next time

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