How can I benefit from fundamental analysis?

• Helps you decide on an investment. For instance, before making a decision on whether to invest in a particular crypto coin, you need a detailed review of its past performance and future prospects. Even more importantly, you need to identify all the factors acting on its price and possible growth. Getting to know what can affect the value of the currency goes a long way in helping understand when to invest and which coins to invest in.

• helps you decide on the investment period. Fundamental Analysis is helpful in understanding the value of your preferred digital currency in the near future- may be after some months or even a year. This effectively helps you choose the best trade entry point, as well as the most profitable investment period. For instance, if your analysis showed that several mainstream institutions were preparing to adopt the use of a particular coin or the underlying blockchain technology, you would be better off taking up a position for the coin.

• helps you spot undervalued currencies (so-called “micro cap” coins). These refer to the little known alternative coins and their blockchain networks but with the greatest potential for growth. The fact that fundamental analysis involves taking a deeper look at all the factors affecting the value of currency including its mission and visions, helps you discover underperforming coins with the greatest potential growth where you can commit your investment. And this includes investments in new coins that present a positive disruption to the crypto industry.

• helps you identify fake investments. Fundamental Analysis helps take away such emotion triggers as huge volatilities when making an investment decision. By looking at the different factors acting on the past, current, and future value of a particular coin, you are able to deconstruct bubbles and possible fraudulent crypto investment schemes. This effectively saves you from bad and potentially hurtful investments (pumped and dumped coins).