Fundamental Analysis

Fundamental Analysis (FA) is a method used by traders and investors to evaluate the intrinsic value of an asset by examining various factors that could affect its long-term performance. In the crypto market, FA involves analyzing the underlying technology of a project, the team behind it, the tokenomics (e.g., supply, demand, utility), partnerships, and the broader market conditions. For example, someone conducting FA on Bitcoin might assess its adoption rate, scalability solutions (like the Lightning Network), and institutional investment to determine its long-term value. FA is contrasted with technical analysis, which focuses on price patterns and market trends. Combining both methods is often considered the best approach to understanding crypto investments.