Why is fundamental analysis essential for cryptocurrency investors?

Introduction:

Fundamental analysis reveals the coin’s both long-term and short-term potential. During a bear market, the value of your investment may plummet, but your ability to hold onto it remains unchanged.

By conducting a thorough fundamental analysis, you can determine whether the coin has promising future potential, giving you the confidence to hold onto it bravely.

So, it holds significance in the crypto market. This blog explains how fundamental analysis is made easy and the crypto market update this week.

Market update for this week:

Last week, Bitcoin demonstrated steady growth, but this week has been exceptional, with prices reaching unprecedented highs. This bullish trend isn’t exclusive to Bitcoin;

it’s a noteworthy period for the entire cryptocurrency market. Investors are particularly interested in the Bitcoin to Indian rupees exchange rate, reflecting the growing traction of cryptocurrencies in the Indian financial landscape.

Ethereum has also reached an all-time high. The main reasons for the Bitcoin price surge are ETF funds and the upcoming Bitcoin halving in 38 days.

Based on technical analysis, both the weekly and daily charts indicate that Bitcoin is overbought. This suggests that it might experience a correction this week. Additionally, an important update for Bitcoin is the CPI data on March 12, 2024, at 12:30.

If the forecast for CPI data is low, the market may experience a downturn, but if it’s high, the market could rally.

For those in India looking to capitalize on this bullish trend, it’s crucial to consider the best exchange to buy Bitcoin in India. Understanding how to buy Bitcoin in India is paramount, especially amidst such market fluctuations.

With the right platform and knowledge, Indian investors can navigate the cryptocurrency landscape effectively, seizing opportunities while minimizing risks.

The next Ethereum update, the Dencun upgrade, and the possibility of an ETF approval delay could impact the market. Keep an eye on these updates this week as they may lead to a pump in the market.

Fundamental Analysis Investor Check List:

Check the ICO/IEO/IDO details:

To review coins in IEOs/ICOs/IDOs you can find comprehensive details on the listed exchanges or sites.

Review the ICO/IEO/IDO specifics:

• What issue is being addressed?
• What is the scale of the issue?
• What necessitates the use of blockchain technology?

Check its social media pages:

You can find information about the coin by searching for it on CoinMarketCap.

To check their Twitter Telegram, Youtube, GitHub, and other social media accounts, then analyze them.

Check its team and partners:

We want to check their websites. You can find their website on CoinMarketCap.You should analyze their partners.

Once you’re convinced after analyzing the team and project, another crucial aspect is examining venture capital involvement. By assessing this, you can identify promising projects and proceed to the next steps.

It’s important to check the project roadmap. Check their roadmap on their website. When the project undergoes upgrades according to the roadmap, it could cause a price increase in the market.

Check its coin or token economics:

This is an important aspect of technical analysis. To initiate coin/token economics, you should look into the white paper rather than the website’s menu. You should verify the circulating supply.

On CoinMarketCap, you can examine the circulating supply, total supply, maximum supply, all-time low, and all-time high of a cryptocurrency.

It’s crucial to examine the price action of the coin. Typically, if there’s a trading volume of 100 million, it indicates a worthwhile project. Verify this on the top global cryptocurrency exchange.

Conclusion:

Let’s quickly summarize the entire blog. In fundamental analysis, it’s important to examine details such as what problem the project solves, the magnitude of the problem, and why blockchain technology is being utilized.

Examine their social media platforms. Verify their team and project. Examine its token economics, including the circulating supply, burning mechanism, and utility. You should engage in trading on a leading global cryptocurrency exchange.