Fundamental Analysis (FA)

Fundamental analysis (FA) is a method used to evaluate the intrinsic value of an asset by examining its underlying factors, such as its technology, team, market potential, and competition. In traditional finance, FA involves analyzing a company’s financial statements and industry position, while in the cryptocurrency space, it assesses the long-term viability and sustainability of a project. This approach helps investors determine whether an asset is overvalued or undervalued and can provide insights into its future growth potential.

When conducting FA on a cryptocurrency, investors might analyze the project's whitepaper, the experience and credibility of its development team, its utility and use case, and the strength of its community. Unlike technical analysis, which focuses on price trends and market patterns, fundamental analysis seeks to understand the long-term prospects of a project.