Fundamental analysis of cryptocurrencies is an essential starting point in making generally accepted valuation and informed investment decisions on them. Being that they are not conventional assets like stocks or bonds, there is no conventional financial statement nor cash flow metric on which an analysis can be based. In the fundamental analysis of crypto, investors look at aspects such as the technology behind the cryptocurrency, market demand, the team involved, among other vital determinants, to find its intrinsic value for a particular coin or token. This is a guide into how one can efficiently carry out fundamental analysis on cryptocurrencies.

Understanding the Use Case

The first thing in fundamental analysis is to ascertain what problem a cryptocurrency was created to solve. This is by identifying what problem the cryptocurrency is meant to resolve and analyzing whether or not the blockchain technology fits well for such a purpose. For instance, Bitcoin was made for digital currency, while Ethereum was made for decentralized applications. From going through the white paper of a project, you will be better positioned to know what it is intended for, how useful…

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