Course Content
A Guide to Cryptocurrency Fundamental Analysis
Crypto fundamental analysis involves taking a deep dive into the available information about a financial asset. For instance, you might look at its use cases, the number of people using it, or the team behind the project. Your goal is to reach a conclusion on whether the asset is overvalued or undervalued. At that stage, you can use your insights to inform your trading positions.
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A Guide to Cryptocurrency Fundamental Analysis
About Lesson

Fundamental analysis (FA) is an approach used by investors to establish the “intrinsic value” of an asset or business. By looking at a number of internal and external factors, their main goal is to determine whether said asset or business is overvalued or undervalued. They can then leverage that information to strategically enter or exit positions.

Technical analysis also yields valuable trading data, but it results in different insights. TA users believe they can predict future price movements based on the past performance of assets. This is achieved by identifying candlestick patterns and studying essential indicators.
Traditional fundamental analysts generally look to business metrics to figure out what they view to be its real value. Indicators used include earnings per share (how much profit a company makes for each outstanding share), or the price-to-book ratio (how investors value the company versus its book value). They might do this for several businesses within a niche, for example, to figure out how their prospective investment stands in relation to others.
For a more comprehensive introduction to fundamental analysis, see What is Fundamental Analysis?
Exercise Files
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