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how to find crypto assets that have good fundamentals.


Cryptocurrency investing can be a great way to diversify investments, but figuring out which cryptocurrency is suitable and which isn’t can be challenging. To make an informed investment decision, it is important to know how to analyze cryptocurrencies.

 There are two types of analysis: fundamental and technical. Fundamental analysis involves taking a deep dive into the available information about a financial asset, such as its use cases, the number of people using it, or the team behind the project.

Technical analysis, on the other hand, involves analyzing charts and patterns to predict future price movements.

To conduct proper fundamental analysis in cryptocurrencies, it is important to understand where they derive value from.

The first step is to review the white paper, which helps define the objectives and technical details of the cryptocurrency.

While some white papers may contain technical jargon not understood by casual investors, it is important to read through the paper to learn about the vision of a project. The next step is to research the reputation of the team and leadership of a cryptocurrency to understand if the crypto project is reputable or not. 

It is also important to investigate the use cases, network, and vesting schedules of the cryptocurrency. 

Financial metrics such as how the asset currently trades, what it traded at previously, liquidity, etc. can all come in handy in fundamental analysis. It is also important to examine how widely a cryptocurrency is being used. 

Most reputable crypto projects have publicly available metrics showing data such as how many transactions are being carried out on their platforms. If use of a cryptocurrency is increasing, it may be a good sign that the cryptocurrency has good fundamentals.

In conclusion, conducting proper fundamental analysis is crucial to finding crypto assets that have good fundamentals. It involves reviewing the white paper, researching the reputation of the team and leadership, investigating the use cases, network, and vesting schedules, and examining financial metrics and usage data. By taking these steps, investors can make informed investment decisions and find crypto assets that have good fundamentals

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