Explanation of Crypto Fundamental Analysis, Must Know!

Crypto Fundamental Analysis is a way or method for investors to provide intrinsic value to a Crypto asset.

So, investors can look at various external and internal factors to determine whether a Crypto asset has high or low value.

With this information, investors can use it and determine strategic investment positions.

For curious Vicigers, here are three metrics of the Crypto fundamental analysis approach that Vicigers must know when they want to dive into the world of Crypto investment!

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Crypto Fundamental Analysis Approach Metrics

On-chain Metrics

According to Pluang, on-chain metrics are metrics that people can observe by looking at data from blockchains.

There are various methods for analyzing on-chain metrics, such as transaction counts.

The transaction count is a measure of the activity that occurred. Vicigers can plot numbers from period to period to see crypto asset activity over time.

After that, there is a transaction value that provides information about how much value has been transacted at a time.

Vicigers can also see active addresses. An active address is a blockchain address that is active at a time.

Finally, there is a fee to be paid. The fee represents information regarding the request in the blockchain, much like an auction.

For example, traders will compete to enter each other's trades at the right time.

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Project Metrics

In this metric, Vicigers will see a white paper or white paper from a Crypto project.

For Vicigers who wish to invest, Vicigers are required to see and read the project whitepaper before making an investment.

A good and promising white paper will provide information about the technology used, usage models, roadmaps, and supply schemes for coin or token assets.

Apart from the white paper, Vicigers had to do research on the team working on the Crypto project.

The track record of the project team members must be clear and provide the expertise to achieve the vision of the Crypto project.

Vicigers are also advised to look at and do research on the competition from the project.

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Financial Metrics

The last metric is financial metric. Vicigers can use information such as how these Crypto assets are traded, liquidity, market capitalization, and others.

First, Vicigers can look at market capitalization as a fundamental analysis of Crypto financial metrics.

This market capitalization can be calculated by multiplying the assets spread by the current price.

Apart from the market capitalization, there is also liquidity which Vicigers can see as information about Crypto assets.

Liquidity is how easily an asset can be traded or traded. Liquid assets are assets that have no problem trading.

If Vicigers gets it right, then fundamental analysis will provide extensive and valuable information about Crypto assets.

This is a discussion of Crypto fundamental analysis and three metrics that Vicigers can use. For gaming top up needs, come on VC Market by VCGamers!