Fundamental Analysis

 In Education

Fundamental analysis looks at a different aspect. Social, political, economical factors to indicate future price movements. The definition of fundamental analysis is the “method of evaluating a security in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts study anything that can affect the security’s value, including macroeconomic factors such as the overall economy and industry conditions, and microeconomic factors such as financial conditions and company management.”

One of the most important aspects of crypto is doing your due diligence. The market is volatile, full of scams and will swallow you up if you do not do your homework. We wanted to inform you on how we do our fundamental research for the coins we choose to invest in. Our fundamental research includes these questions and others. We evolve our questions as we learn new things:


  • Look at the coinmarketcap charts, historical data, and what markets are selling it. For historical data we look at all time and see how the price moved. This will also tells us how long the coin has been on the market. If it is on only smaller markets this can be a good thing. When we got in on power ledger it was only on Kucoin. Make sure it is a reputable exchange. Since power ledger was only on Kucoin the potential for when it would hit bigger exchanges made it to us a no-brainer that prices would rice.
  • Make sure the coin has a website.
  • What problem is it looking to solve? Is it a problem that even needs to be solved? Is it actually trying to do something useful for many people or only in a niche market?
  • Does it have a working product? This is a big thing. Most coins don’t have a working product and are only ideas.
  • Does the coin have a white paper? Many people will read these entirely through.
  • Do you foresee any problems that can come with the coin being implemented?
  • Do they have a clear vision on what they are trying to do? Are they focusing on just one thing or several?
  • Look at the team behind the coin. You will probably not know any of them. You just want to see if they actually have experience with what they are trying to do. Look at credentials. Check their linkedin account.
  • Check forums, search engines, websites and what others are saying about the coin.
  • Join their telegram or slack channels and watch for activity from the coins team.
  • Check github to see how active they are updating. We like to see weekly updates at a bare minimum.
  • Do they have any partnerships with other companies?
  • Who or what is their competition?

These are some of the basic questions we utilize while conducting our coin research. If one question doesn’t check out that doesn’t mean the coin is bad or that we will not invest. We look at all factors involved and make an educated team decision based on the information gathered.

The goal of fundamental analysis is to look at these factors and decide if something is undervalued or overvalued. A big part of our crypto strategy is research. We research the coin, read the whitepapers, and study the team. This is crucial in determining if you should invest or not.

If you have things you look for we would love to hear from you.


-AboveCrypto Team


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