Fundamentals are something that people usually forget. If you are a pure daytrader this could be kind of ok, but when you are investing on a middle or long term basis fundamentals are quite relevant.
They will make you confident about the project. Every projects will cross some bad moments, usually the best moments to buy. But the only way to be confident enough about buying when a project is crossing a bad period is to trust in the potential of the team and their idea. Also, for the long run, most of the crypto projects will be totally out of the game because of not adding any value.
We are in a tokenizing fever, but the truth is that not every business need blockchain or tokens. So if you are thinking about going in a long term investment you have to be sure that the projects is offering an innovative idea with real scalability chances or at least adding value to an already successful area. Greed can keep some projects up no matter their fundamentals, but usually, it’s a bet that isn’t worth it, because it can explode anytime and catch you in. So to avoid this kind of gambling scenarios, a proper research will help you to be confident, to learn and to understand where are you putting your money.
You mention "fundamentals" four times (including the subject line), yet you don't mention what the fundamentals are for a cryptocurrency or token investment.
For comparison, the fundamentals for a stock investment are key numbers and economic indicators such as:
- Revenues
- Earnings
- Future growth
- Return on equity
- Profit margins
- Debt
- Interest rates
- Credit ratings
What are the fundamentals, or key numbers and economic indicators, to be used to evaluate a cryptocurrency or token investment?
