When it comes to investment in cryptocurrencies guys, the fundamental analysis should be your priority. After all, over 6000 cryptos are out there.

While technical analysis trains you when to enter the market, fundamental shows you the way to the right blockchain projects in the crypto world. Of course, selecting cryptos with good fundamentals doesn't vanish the risk entirely, but helps you eliminate the exposure to a sudden burst.

Actually, when you analyze the fundamentals of a cryptocurrency you research simultaneously for all the news, facts & rumors about it, its financial situation, upcoming risks etc. While technical analysis trains you when to enter the market, fundamental shows you the way to the right cryptocurrencies.

Things to consider during the analysis

So, if you hear a lot of hype around specific crypto, here are some things to consider :

I) Take a walk through their white papers and have a look at the project’s technology. The good news is that white papers are often written in a language that nonexpert people can get, yet the reading is not straightforward.

II) What is the project’s contribution to society. Are they just there to get rich quickly, or do they have a long-term plan for society's growth?

III) Assessing the project’s team. Who are they? Do they have a reasonable split of technical team members? Do they have lawyers or bankers on board & engineers experienced in complex software projects? This is especially useful when you invest in a company’s project, and exceptionally at a young project which is what an ICO (Initial Coin Offering) tends to represent.

IV) Valuate the project’s road map. What have they achieved so far and what they are planning to accomplish in the future?

V) Watch their partnerships before jumping on board. Having reputable partners can be a sign that the company is solid and on the right track to get ahead of the competition. Furthermore, having good partners gets higher chances for the crypto to be accepted by the masses because of reputation. Think about VeChain in this case.

VI) Check and filter the news. Be aware of the impact of the media. Of course, many crypto companies are willing to pay popular search engines lots of money for marketing.

VII) Familiarize yourself with crypto’s technology. Have in mind that your crypto’s market success is not a straight line to the top, and if your crypto’s price is lowering, do not be panicked or disappointed, truly believe in your asset by getting accustomed to its technology. If it is truly worth it, good days will come. 🦾