FA 101

Fundamental analysis is the process of evaluating a security’s value by studying current economic conditions and any intrinsic qualities of the security itself, such as its use cases or future potential. The objective is to determine whether the security’s market value matches the true value of the security. With cryptocurrency, fundamental analysis may study individual cryptocurrencies’s innovations and whether they add any new value to blockchain technology. Fundamental analysis is especially important with respect to cryptocurrency because their are so many cryptocurrencies that are just copies of each other or do not have realistic goals. It is necessary to differentiate between them.