Cryptocurrency fundamental analysis, crypto currency analysis, crypto currency analysis, crypto currency live price and crypto live price price are among the topics that most of us are curious about.. Let’s take a look at the building blocks of cryptocurrency analysis.
What is cryptocurrency analysis?
When we get into cryptocurrency analysis, we first need to get into its building blocks.
The building blocks for Cryptocurrency analysis
“What is Crypto Fundamental Analysis?” The series will continue for several summers.. In the meantime, I will continue to promote crypto money projects as much as I can.
Some of these articles may be long and some may be short.
My aim is to talk about as many projects as possible.
I hope. there will be useful articles for you and the ecosystem…. However, what is meant by “reading” here is “understanding”, not a superficial action performed with the eyes or lips.
It is true that Fundamental Analysis has some differences as a method in terms of traditional markets and crypto money market.
For related article, see: What are crypto money banks and how do they work?
What is fundamental analysis in the traditional sense?
Fundamental Analysis in cryptocurrency analysis is a research method to find the closest real value of stocks according to certain market conditions.. This method; By analyzing basic facts such as general economic factors affecting the price of the stock, sector problems, competition conditions, financial structures of companies, efficiency, profitability, liquidity, financial structure, distribution channels, management skills, export opportunities and how these affect the price of that stock,
According to Karslı:
- Fundamental analysis is an analysis method for calculating the closest real value of stocks according to certain market conditions.
- All kinds of information about this stock are collected.
- As a result of all the data collected, if the real value of the stock is higher than the market price, an investment is made or vice versa, if the real value of the stock is lower than the market price, no investment is made.
- General economic factors affecting the value of stocks, sector problems, competitive conditions, financial status of companies, efficiency, profitability, export p potential, corporate management quality etc.. The facts are analyzed.
- By examining in detail how these facts affect the value of stocks, it is aimed to determine the investment value or real value of stocks.
- Proponents of fundamental analysis, investing in a stock decides whether it is worth doing by comparing the value determined as a result of the fundamental analysis with the market price.
- If the actual value reached as a result of the analysis is higher than the market price, it decides to invest, if it is lower than the market price, it decides not to invest in this stock.
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While calculating the real value of a stock according to Fundamental Analysis method in crypto currency analysis, all information about that stock is grouped from macro level to micro level and analyzed in four stages.
These are respectively the general economy of the economy. “Economic Analysis”, in which the situation and the effects of this situation on the stock price are examined, is the most accurate according to the information and data we obtained after the economic analysis. The “Industry Analysis” in which the suitable and advantageous sector is selected and this sector is examined in depth, “Company Analysis” in which the financial statements and financial status of the companies operating in the determined sector in the light of these data are examined in depth, and the last stage is “Equity Analysis”.
While examining these; Many details such as national and global economy, Gross National Product, privatization, inflation, interest rate, budget deficit, exchange rate, foreign exchange reserve, foreign capital, employment should be taken into account.
What is crypto currency analysis?
Basic Analysis; It is a method of investigating crypto money projects, the team behind them, the purpose, function and objectives of the coin/token in detail, and determining whether they are investable.
In the Classical Fundamental Analysis, “real I did not use this expression for cryptocurrencies when it comes to “calculating the closest value”; because I think this is not possible for now.
Here, it is necessary to look at different elements from classical fundamental analysis.
What’s for example?
Marketcap on cryptocurrency analysis , volume, amount in circulation, total amount to be produced, nature of the website, announcements, events, is it mining, Coin or token, social media accounts, number and nature of the exchanges it is listed, is there a roadmap and is it updated, is it a shilling? is there a group, who is the angel investor, is the team on the website real or not, and the Whitepaper as the end of the initial research.
These are the most basic topics of fundamental analysis in the cryptocurrency market, but they are also indispensable.. It can be called the introduction of detailed research.
The image below shows the information on the coinmarketcap.com site and illustrates how much data we can access about the crypto money we are researching by simply visiting this site.
Whitepaper why is it important?
There is an opportunity to gather information from the source of the project.. Given time, one can learn a lot about the project.
So what’s the downside of whitepaper?
Here we’re dealing with merchants praising their goods, so everything is rosy! That’s why I just said “whitepaper as the end of the initial research.”
Coin Evaluation Form (CDF) can be evaluated as we have a template at hand.
If we want to do Conscious Fundamental Analysis on cryptocurrency analysis, we need to have answered most of the items here.
After collecting information from the project’s own site and other sources -that is, first hand-, we should go to all the sites we can go to, considering the possibility of relatively more objective explanations. thoughts are doubtful. Everyone declares their own opinion and even tries to get it accepted.
In this sense, we must use social media effectively.
Why is the use of social media important?
Because social media belonging to coin projects and other sites Announcements, news, agreements and all kinds of developments made in their accounts allow the investor to be informed instantly.. Especially Twitter, Medium, Telegram, Reddit, Slack, YouTube, Facebook and Discord are frequently used by many projects.
Yes, these channels are data for us. It is heaven, but if we do not know what we are looking for, we may find ourselves in the mess of hell.
Therefore, we have to act systematically as I tried to explain above.
Fundamental Analysis is a dynamic process that requires experience but is highly variable, especially in the crypto money market.
Dictionary
marketcap: market cap
coin and token: The most obvious difference between the two; coin has its own blockchain, while tokens are tools or values that represent an asset produced and distributed for a specific purpose on a specific platform.
roadmap: roadmap
shill: Often maliciously advertised for the acquisition of a coin
whitepaper: Documents describing a project in detail
What is cryptocurrency analysis?
In the previous article, I mentioned that Fundamental Analysis is a dynamic process that requires experience but is highly variable, especially in the cryptocurrency market.
What do I mean?
For a while “hard fork” became the agenda, affected the price, “coin burn”, rebranding, website renewal, logo changed, announcements, roadmap, wallet updates, ICO, new partners, halving and recently IEOs etc.
These are our variables and we will encounter many more innovations in this ecosystem. This is exactly what I call dynamic, changing situation.. We have to follow the innovations in the market all the time.
I liken these to seasons, but seasons that are not seen again in general… That is, it affects the price for a while, but then it can become ordinary.. Or, an event/event that causes a price increase in one coin may not work in another.
All of these are the subject of crypto Fundamental Analysis, but let’s not forget that; Finding the right coin requires fundamentals, and technical analysis is needed to get it.. There is no absolute answer to the “correct” here, there is a situation that changes according to the trading habits of people.
Experience in cryptocurrency analysis is important because understanding what will add value to projects or realizing what will bring profit in which period makes our work easier and It leads us to the conclusion.
So what is the HOLD logic?
How accurate is it to say “I’ll see the situation in 3 years”?
I experienced this very painfully after Mega Bull in 2017. I think we. Most coins have experienced declines of more than 90%.
Let me give a few examples:
Let’s start with Bitcoin.
The highest figure reached is $19,870.62 ( December 2017). We call it ATH for short.. ATH stands for All Time High and means “all time high”. After this level, Bitcoin fell to $ 3169 in December 2018.. Lost 84%!
Ethereum (ETH)
ATH of $1,389.18. The level he touched in December 2018 is $82.08.. Lost 94%!
Ripple (XRP)
$3.65 ATH. After this figure, the value he saw in August 2018 was $0.2468.. The loss is 93%!
This situation is not unique to the cryptocurrency market, see the result of 10 years of HOLD (1999-2009):
An asset Selling it at the right time is just as important as buying it at the right time.. During the period when you say, “I will keep it for so many years, I will not even look”, major collapses may occur after serious rises, and as a result, loss may occur while waiting for profit.
In summary, follow-up is a must.
Glossary
hard fork: It is the name given to the decomposition where backward compatibility cannot be achieved.. In this decomposition, a block created according to the old rules is only valid in the old version.. After decomposition, two separate chains occur and there can be no interaction between each other.
coin burn: Coin burning is the process of permanently removing coins from circulation, reducing the total supply.
rebranding: The process of changing a name/brand to make a product or organization more attractive.
anon: Anonymous coins
roadmap: Roadmap
ICO: Initial Coin Offering
halving: means halving. Bitcoin’s block reward halving every 210,000 blocks (approximately every 4 years). The next halving will take place in May 2020 and the reward will be reduced to 6.25 Bitcoins per block.
IEO: Initial Exchange Offering
HODL: Not persistently selling a coin even when its price drops.
Mega Bull: Big Bull Season. bull market; a phrase used to describe markets dominated by optimistic expectations about the future.. People who expect the market to rise are called bulls, and the structure that the bulls drag up is called a bull market.. The opposite is the Bear market.. bear market; is a phrase used to describe markets dominated by pessimistic expectations about the future.
Fundamental Analysis is used to grow investments in various ways.
Financial Analysis analysis of the charts:
Key analysts focus on official documents that allow companies to understand how they are performing. At their starting point, many fundamental analysts dig deep into a company’s financial statements to see how profitable a company is, how fast it is growing, what kind of financial health it is in, and whether it has the ability to withstand tough economic times.
Crypto The situation in the money ecosystem is of course different.. In general, there is no system that works with the logic of the company and more decentralization is at the forefront (at least that’s what the claim is).. For this reason, for financial statement analysis;
- The graphs from the beginning to the present can be examined and an idea of its volatility can be obtained.
- If it is an ICO or IEO, the token distribution can be looked at.
To get an idea of how robust the project is:
First of all, obtaining clear data about its “robustness” and determining precise criteria for it So hard. But the following items may be of some help:
- Whether what is written in the whitepaper is true
- Whether the process in the Roadmap is working
- Whether there is a product running and whether it is
- Number of exchanges where cryptocurrencies are listed and the nature of these exchanges
- Whether they have Pump&Dump features
.
Going beyond financials:
With Fundamental Analysis, the position of the project against competitors (superiority, weakness, goals…), the quality of the team (experience, competence), being a solution to an existing problem, etc.. you can check. These are outside the monetary analysis, but they can show the future profitability of the project.
A Key Analyst should reach all the data he can reach and should be able to interpret them according to his experience.
In scientific research, for example, in action research, which is a qualitative research type. you enter the data collection process to mature your thesis and reach a conclusion. Articles, audio-video recordings, images, structured or unstructured interview questions, etc.. Now, whatever your subject of study is, you need to collect and analyze them as soon as possible.
How long will you continue to collect data?
This is a process that may take days or weeks.. If the next data you collect no longer answers the questions you seek, or if the next data you find has started to repeat the previous ones, you need to end the process; because after that it is just a waste of time and time is very important to us.
Now let’s take a look at a few questions that can be asked:
1. What is the distinguishing feature of the project?
2. What are its advantages and weaknesses against competitors?
3. Are the proposed solutions realistic and do they actually solve a problem?
4. Are the website and whitepaper well-crafted?
5. If this is a coin, what was its price when it was first listed on the exchange?
6. If this is an ICO or IEO, what were the “hard cap and soft cap” targets, how much money was raised in the beginning?
7. Is the token distribution fair?
And many more questions…
Dictionary
Volatility: means “volatility”. Volatility measures how often the price changes occur, the size of the difference between the price movements of the financial product.. In short, we can say that the risk level of a financial instrument with high volatility is high, and a financial instrument with low volatility has a low level of risk.. Volatility measures changes in both directions, up or down. Source
Pump&Dump: A group of stock market investors who, by agreement, manipulate the market to drive the price up or down at a certain time.. It is a very common situation in the crypto money market.. It is important to stay away from such formations in order to avoid losses.
Hard cap and soft cap: Soft cap for the minimum investment amount targeted by the crypto money project to continue, and hard cap for the maximum investment amount. Cap terms are used.
Fundamental or technical analysis?
There is no clear answer to this question, because it varies from person to person.. For some traders in the market, it is important not what is bought (fundamental analysis) but at what levels it is bought and sold (technical analysis).
Charts, prices, volumes, support and resistances, patterns and indicators for Technical Analysts it is important. They can trade just by looking at them and show a respectable effort.
Some Fundamental Analysts, after researching the project in detail, buy regardless of the price of the cryptocurrency and wait for their investment to appreciate.
As most investors can confirm. Ideally, these two analyzes are used together.. First of all, Fundamental Analysis is done, then with the help of Technical Analysis, buying is performed from the right place.
Why is fundamental analysis necessary?
You spend hours, even days, in front of a screen and say, “What should I buy? Is it the X coin, which has been talked about a lot lately, or the Y coin, whose graphics are shared by local/foreign Twitter accounts with many followers? If you think that means you need Fundamental Analysis.
Otherwise, you may not be able to get rid of this addiction of ideas, which means being dependent on others. When you make a loss, the effect of the pain and regrets you experience inside is greater.
The long time you spent on Fundamental Analysis will return to you as an experience and perspective, and you will be able to more clearly recognize both good and avoidable projects; moreover, on your own, without expecting anything from anyone.
Is the basic analysis method perfect?
No, unfortunately not.
- The project itself or online It’s hard to be 100% sure of the reliability of other sources that buy it, so you’re likely to be misled.
- There’s no guarantee that a cryptocurrency will repeat the glory days of the past.
- A do-it-yourself and profitable Fundamentals It may not always be possible for Analysis to get you the same good results in all projects.
- As trends in the market change, you may need to update your Fundamental Analysis method.
- Assuming you have found the right project as a result of a perfect Fundamental Analysis, Your timing of buying the coin could be very bad because you did not apply to Technical Analysis.
- And the most dangerous situation: falling in love with the project! It is one of the side effects of the Fundamental Analysis process.. You research so much and love it so much as you dive deep that you don’t see any other coins.. In the worst case scenario, you may lose your entire investment.. Therefore, “portfolio diversity*” is important.
*It may be appropriate to include more than one crypto currency in your portfolio or other investment instruments such as foreign currency and gold in terms of risk distribution.
How can I access fundamental analysis data for live cryptocurrency prices? Where to start?. Information about coins that you can only find (perhaps not) that you can find after hours has been gathered.. You just have to read and evaluate it.
Of course, you need to verify the information and there will definitely be other sites you can use.. But here you can see most of the data together categorically (There is no Turkish support on the site, but I think the content can be understood with the help of translation sites such as Google Translate).
Now let’s take a closer look at the site.
In the introduction. 3 categories attract our attention: MARKET, ANALYSIS, PREDICTIONS.
Market
a) Global Market Chart: Value of crypto money market and volume information
b) Recently Added: Recently added coins
c) Top Gainers: Best performing cryptocurrencies in the last 24 hours
d) Top Losers: Worst performing cryptocurrencies in the last 24 hours cryptocurrencies
e) Categories: The section where cryptocurrencies are divided into 18 categories so that more informed searches can be made
analysis
a) Fundamental Analysis: The site itself list of cryptocurrencies ranked according to the Algorithm Score created
b) Investment Analysis: Historical performance and statistics of all cryptocurrencies
c ) GitHub Analysis: GitHub activities of open source cryptocurrencies
d) HowTo Guides: Guide to buying, selling and sending cryptocurrencies
e) Pump & Dump updates: Cryptocurrencies with sudden rise and fall in prices
f) Arbitrage opportunities: The section where arbitrage opportunities between exchanges are shown (not up-to-date)
g) Crypto Questions: The section that can answer questions about the cryptocurrency ecosystem
forecast
Price “estimates” of cryptocurrencies based on the growth models of other markets
All cryptocurrencies are listed on the site according to their market caps.
Editing the table when you log in to the site (Customize Table) You can use filter and search (Filter) parts.. Especially the filtering section provides great convenience for conscious users.
This is the general introduction of the site.
Sample Review
Now let’s go into some details and let’s review the titles here on Ripple.
Overview gives us an overview. You can get a lot of data just by looking at this section.
What is XRP here? You can find many data such as monthly and weekly volatility rate, ATH in USD and BTC, 3-6-12 month growth rate, etc. The See Full Details section contains enormous data for Fundamental Analysis. This is the favorite part of the site.. Let’s take a closer look.
Open Communication Channels:
Are there any social media accounts and e-mail addresses where the project can be reached?
Activity on Social Media:
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Activity status in social media
Team Strenght (Strength of Team):
Managers’ previous experience (eg managing +million dollar companies), sales/marketing team size compared to other cryptocurrencies, total number and average age of the team, etc.
Advisory Board Strength Strength of Board):
Do consultants have information and social media links on the site? Have more than two executives previously managed million-dollar companies?
Brand Awareness/Buzz:
Other what is the total community size compared to projects?
What is the total community size on GitHub compared to other projects?
Product Strenght):
What is the latest status of the product? (fully working product, alpha-beta version etc.), whether it is open source, GitHub activity, Is there/up-to-date Roadmap, Is Whitepaper published?
Coin Strenght (Power of Cryptocurrency):
Transaction rate per second, emission rate, trading volume, market cap etc. compared to other cryptocurrencies
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Business/Company strenght (Company Strength):
Has it published a financial report, does it have strategic partners, has it declared its superiority over its competitors, etc.
We examined the
Analysis topic in detail. Let’s take a look at the others.
In the
Markets section, you will see the exchanges where the crypto currency you selected is listed.
Purpose section What the crypto currency you choose is, what it is trying to do, what category it is in, and its superiorities, if any, are included.
Latest news about the project in
News :
Links of the project in
Resorurces:
Related:
Events contains the event calendar and announcements related to the project.
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After these explanations, you can choose a project and examine it in detail.
To access detailed Fundamental Analysis data about Cosmos, we go to the Coincheckup site and click on Cosmos.
We are now on Cosmos’ page. Algorithm score 4.6 out of 5. That’s a great number. In this sense, it is one of the rare coins.
I am going to the Purpose section first at this stage.. Here, there are brief explanations about the project, its categories and video presentation, if any.
Cosmos; a blockchain ecosystem in which thousands of DApps work collaboratively to create a new token economy.
Categories: Networking, Blockchain as a Service
Promotion video here It went beyond About 2 hours and 13 minutes long. Normally, this section contains several minutes of videos.
Our current stop is the Analysis section. this is my favorite because, as I mentioned in the previous articles of the series, here is the data that you may not be able to find after hours of work.. After clicking SEE FULL DETAILS, the data you see is very important for you to get to know the project closely and have detailed information.
Please go to this page now and examine the content (it’s a hands-on study).
See just above SEE FULL DETAILS Decentralized org. structure writes. This means that Cosmos is a decentralized organization. An important data.
Now let’s look at other data.
There is a link to the social media accounts of the project.
Unlike blog and Facebook, they are active on Twitter.
There are YouTube channels and their link has been added.
Compared to other projects, the community size is 80 out of 100.. The current number of people in the community appears to be 28874. A good number.
Full points for product development status, there are working products. This is very good.
The project is open source.
It has roadmaps and is up-to-date, the link has been added.
The project will not generate new tokens. This is also very good.
The project’s coin, ATOM, is among the most traded coins, which is very important.
The project also got full marks in GitHub criteria.
In the first part, we examined the SCORES title in the Analysis section in detail.. Let’s continue with the other three sub-headings.
MONEY FACTS
This section contains data about ATOM. I only took one image from here because it is too long.
So what’s up, let’s examine:
In the first part; the name of the project, symbol, circulating quantity, total supply, price, ICO or not, will a new token be produced, consensus model etc.
In the second part; is it open source, GitHub link, community size (number of people), status of the project (is there a working product, is it a demo, is it just an idea), links: roadmap, whitepaper, FAQ (Frequently Asked Questions), Explorer
In the third part there is the data about the team.
Then there are the Consultants and Members of the Board, project details, social media and communication, and finally the ICO information, respectively.
GITHUB DEVELOPMENT
This section shows data on the project’s GitHub activities.
GOOGLE SEARCH TRENDS
This section shows the project’s Google search results.. But there is a project-specific problem here; “Cosmos” means “universe” in English, so it is clear that all searches are not related to Cosmos, which is the subject of our article.
The first data we encounter on the main page is in the image below.. Let’s examine them now.
$2.79
The price of ATOM at that time
MARKET COVER: 531,550 MM
ATOM’s market cap
24H VOLUME: 129.195 MM
ATOM’s trading volume in the last 24 hours
CHG. 24 Hours: 0.07%
ATOM’s price change percentage in the last 24 hours
CHG. 7D: -1.78%
ATOM’s percentage of price change in the last 7 days
CIRC. FEED: 190.69 MM
circulating amount of ATOM
THE THING. POINT: 4.6 / 5 (# 1)
ATOM received 4.6 out of 5 according to the algorithm score created by the Coincheckup site and is currently ranked first among all coins as indicated in parentheses.
In the image below, there are links that make our work easier.
ATOM’s respectively;
Web site, There are Twitter account, Telegram account, GitHub page, Reddit account, Blog page, Block explorer, Whitepaper and YouTube page.
You can only access the official accounts of the project through this section without going anywhere else.. That’s great.
In the previous section, we covered the entire Analysis section of the Cosmos page on Coincheckup.. We continue today’s review with Overview.
Cryptocurrency live view
First part PRICE CHART. You can see the price action of ATOM from past to present graphically.
The headings next to it are PRICE FACTS and UPDATES, PERFORMANCE STATS and HISTORICAL PERFORMANCE (ROI). Let’s examine one by one.
In this section, ATOM’s 1-hour, 24-hour and 7-day price movements; its value in USD, BTC and ETH; You can see its marketcap (market cap) and 24-hour trading volume.
In the middle is Cosmos’ promotional video, on the right is Coincheckup’s algo. We can see the score and its details.
We can follow the current news about Cosmos under the News heading at the bottom, short-term trading forecasts according to some technical analysis data in the middle, and event news on the right.
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Cosmos Price Performance Statistics are at the bottom of the page.
In this section, ATOM’s;
- what how long it has been traded,
- volatility (price volatility) percentage in the last 30 and last 7 days,
- ATH in USD and BTC (All Time High, highest price),
- growth rates in the last 3, 6 and 12 months,
- comparison of the first day and today’s price,
- how many months positive trades took place,
- The day and month with the biggest price decrease,
- the month with the most growth are included.
ATOM’s return on investment (ROI) is shown at the bottom of the page.
Now the Charts title next to Overview Let’s take a look at
Here we see ATOM’s price chart, market cap and volume. Circ at the bottom of the chart. Supply -as we mentioned in the previous article- is the circulating amount of ATOM.
At the bottom of this page, the past price movements of ATOM are shown.
The specified day’s Opening, Highest, Lowest, Closing values and Trading Volume.
Price estimate
This section is divided into three parts. The first is Worldwide Money Flow. Here you will see the Cosmos price forecast based on worldwide money flows. These prices are only estimates and are not investment advice at all.
When certain conditions in the first 3 charts are met, the price of ATOM may rise to $28, $159, and $403, respectively.
Second part Bitcoin’s Growth. Values that ATOM can achieve in parallel with the growth of BTC:
The third part is Other Tech Sectors, that is, Other Technology Sectors. Cosmos price estimates based on the average growth of Internet, Mobile Phone, Google and Facebook:
Our next main topic is Markets. Here’s all of the ATOM listed. we see the stock markets. The table also includes data on ATOM’s parities, price, 24-hour volume and when the information from the stock market is updated.
Our other main topic is News.. This section shows news about Cosmos and ATOM. On the right, there are the shares of the project’s Twitter account.
You can follow the latest developments about the project from one place by simply coming to this section.
resources
In this section, which is also very useful, Cosmos’s;
Website, Whitepaper, Blog, FAQ, Message and Reddit, as well as Explorer links are given.
The last three chapters: Related, forum and events
Related lists coins associated with Cosmos. There are 510 coins in total.
If you ask how this relationship is determined, the answer is in categories.. These are: Networking, Blockchain as a Service, Decentralized Applications and Smart Token.
In the
Forum topic, Coincheckup has created a space where people related to Cosmos can share their opinions, but this place has not attracted any attention.. There is not a single comment.
Events is where the events related to the project are shown.
This is all the data we will look at on the Coincheckup site about Cosmos.. But we will continue with the Crypto Fundamental Analysis series in general.
If your Fundamental Analysis process for a cryptocurrency is over and you have decided to buy it, there are two things left to do:
Look at the Bitcoin chart
Making a Technical Analysis of the cryptocurrency you want to buy
These are essential to make purchases from the right place at the right time.
“I understood the second point, but why am I looking at the Bitcoin chart to buy an altcoin? I’m not going to buy Bitcoin!”
Let’s unpack this a little bit.
Cryptocurrency market does not consist of coins that move completely independently of each other.. We also see coins rising/falling together or consecutively.
We often come across sentences like “X coin has made a good rise, I think Y coin will accompany it after this move”.
In the big picture, we can say that Bitcoin’s movement has affected altcoins a lot.
- Bitcoin experiences a sudden rise, altcoins fall (panic selling)
- Bitcoin suddenly falls lives, altcoins fall (panic selling)
Altcoins usually fall in these situations where there are different possibilities. This is the most important indicator of how high the impact of Bitcoin is in the market.
Then, being able to predict the possible course of Bitcoin is important in terms of predicting the direction of the market in a way.
What to look for. ?
Hash rate
Hash rate refers to the power of the mining hardware used to mine cryptocurrencies. The hash rate associated with Bitcoin, on the other hand, refers to the number of attempts per second with the SHA256 algorithm to verify a transaction dump on the Bitcoin blockchain.. Having more verification power increases the opportunity to find the next block and get the block reward. As you can see in the current hash rate, there has been a decrease especially since October 23.. This is something to consider.
Number of unique addresses
The number of newly opened unique addresses is an important data in order to see the interest in Bitcoin.. It may be appropriate to evaluate the price movements experienced by BTC together with the number of addresses.. There has been a decrease since June.
Crypto live Bitcoin active addresses
There has been a decrease since June here too.
Dominance
BTC dominance was 86.74% as of February 26, 2017 (was $1167). This rate decreased to 33.63% on January 15, 2018 (was $14.445).. Today this rate is 67.4%. The previous peak was 70.4% in September and the price was around 9800. Therefore, I think that BTC dominance should be taken into account when it comes to buying altcoins.
When I consider these data, there is a recent rise in both BTC and altcoins -unless there are new and strong stories-. i don’t expect. This is a purely personal opinion and I am likely to be wrong.
Beware of scam coins
Scam coins are one of our biggest problems with the market. Money can be lost to such organizations with the dream of making a lot of money instantly.. We need to be careful.
Fortunately, the market cleans up from time to time.
In the Bear Season, nearly 1000 cryptocurrency projects “died” due to “scams, inability to convert into products and low volume”. Let’s remember it again.
Can we detect these scam coins on our own?
-Yes, the explanations below may help you.
Scamcoin detection criteria
Website
The first place to go to start reviewing a project is the project’s website. Immediately stay away from sites that are sloppy even at first glance and do not include sufficient summary information about the project.
I am sharing a project (!) below that can be an example of this.. Its homepage is just that.
Team
There are projects that compete with their developers or managers. starts 5-0 ahead. People trust the project for the sake of these names.
However, not every project will include such well-known or influential names, and it is not possible for you to know everyone.. For this reason, if there is no clear information about the team on the website, be cautious and even stay away if possible.
For example, there is no information about the team on the (!) page of the project called Nework (NKC).
Existence of the team Linkedin and, if any, personal websites where we can get the most reliable information about their work.
Having a Linkedin link is not enough either.. It should be checked whether there is information, study, update about the project in the content.. A fake LinkedIn link is just a scam.
Finally; We can hear that some projects (!) put some important names on their websites as if they were part of the team in exchange for money to announce their names.. It is better to be cautious.
White paper
One of the first resources to look for when starting project research is the white paper.. A well-crafted whitepaper provides detailed information about the project and coin/token. While doing this, it benefits from technology in terms of form, and the richness of language and expression as content.
Images with low resolution or a whitepaper full of spelling/explanation errors are an indication of carelessness.
What an example of what I have told. I do not know; Review the whitepaper of Ethereum Meta and decide for yourself
The absence of a whitepaper belonging to the project (!) is a sufficient reason for you to leave the scene.. For example, I could not find a whitepaper of Ethereumlite on its site.. More precisely, I couldn’t find anything
Another interesting situation is the copy whitepapers.. For example, Tron.
Again, Droplex’s whitepaper was word for word the same as QRL. Droplex used instead of QRL only. While the GitHub code was the same before, it was changed when the situation was noticed, but no additions were made afterwards.
The perfect preparation of a whitepaper does not indicate that the project is reliable.. We will only add +.
Let’s not forget that projects reveal how they want us to see them with their whitepaper.
GitHub
GitHub is a storage service for software projects that use Git as a version control system and is free for open source projects.
It is important to check the project’s GitHub page so that the team can be checked if it is working.. However, as in the example of Droplex I mentioned in the previous article, duplicate codes or uses that you will not understand if you are not a software developer can mislead you.. At first, all you can do is check GitHub and see if there is code.
You can write the name of the project you want on git-awards.com and review the statistics.. For example, when you type “Bitcoin” and press “enter”, the following information will appear:
You may not be able to access these statistical information for some projects on GitHub.. For example, when you type Patientory (PTOY), you will not see any data.. This is because the project is not open source.
Reason for it
Most cryptocurrency projects above 4700 lack originality. If a project you just saw came up with the slogan “You can send money to anywhere in the world, whenever you want, as fast as you want”, “go ahead!”.
Social media accounts
Social media accounts are at the forefront of the channels to get information about the project or to exchange ideas.. At first, it is possible to list platforms such as Twitter, Telegram, YouTube, Facebook, Medium, and Slack.
In some of these platforms, announcements and developments are shared, while in others, answers are given to participants’ questions or users can chat among themselves about the project.
It is noteworthy that a project has a large number of followers. Especially Twitter and Telegram are of great importance for the crypto money ecosystem.. We can say that “the heart of the market beats here.”
As of November 14, 2019, the number of followers of the @BitcoinCom twitter account, which is under the guidance of Roger Ver and where Bcash propaganda is made, is 22 thousand, while the number of followers of @Ripple is 942 thousand! These are important data.
But here again, it is useful to be cautious.. Masses that are overly dependent on some coins can make misleading posts, especially on Telegram channels.. Relying on every shared post may cause you to make the wrong investment decision.
Projects that do not have a social media account or are not actively used should be avoided.
Exchanges where cryptocurrencies are listed live
Aspects of exchanges that interest us users; trading volume, liquidity, commission fees, number of coins listed, nature of listed coins, interface and ease of use. Additions can be made to these.
According to Coinmarketcap.com data, there are currently 301 cryptocurrency exchanges (This number is of course higher). Therefore, we have to make the best choice possible.
I would definitely recommend that one of these choices is not YoBit.. Because they inform through their Twitter account and e-mails that they will pump a coin at an hour they set.
You already know the popular exchanges right now, but these exchanges cannot guarantee that your coins are safe forever.. There is always the possibility of your wallet being hacked.
The coins on the exchanges are not yours, it’s as if they were yours.. Anything can happen at any moment. It’s so annoying but that’s the reality. Despite 2FA, different e-mail/password measures, there may be problems.
At this point, you can store your coins in cold wallats (cold wallets) such as Ledger Nano, Trezor, which are called cold wallets. What makes them reliable is that they are offline. However, since these wallets do not support all coins, they still cannot offer a complete solution.
After these reminders, let’s get back to the essence of the subject.
Which exchanges or how many exchanges the coin you are looking for is listed on? is an important data. It is also a very serious problem that the token you bought from the ICO is not listed on the exchanges at the end of the process.
To see the exchanges where a coin is listed;
1. Select the coin you want on coincheckup.com. For example Siacoin.
2. Click on the Markets tab on the page that opens. Here you will see all exchanges where Siacoin is listed.
MLM chart
MLM stands for “Multi-Level Marketing”. This term means Multilevel Marketing.. This marketing system, examples of which are seen in daily life such as Avon and Amway, is also occasionally encountered in the crypto money ecosystem.
You need someone’s references to be included in the system and you will receive a commission from every member you find.
You should avoid such occurrences that are not remotely related.. Here are some examples:
Bitconnect, Onecoin, Mavro, Trader Param, Lazio, Ormeous Global, Digital Gold Share, Starbit, Mastercoin Plus, BitClub, Trade Money Club, Mindset 24 Global, iCoinPro, Firstcoin
Website security
Via the Chrome example:
You can check the security information about a website to see if it is safe to visit. Chrome warns you if your visit to the site cannot be secure or private.
1. Open a page in Chrome.
2. To check the security of a site, look at the security status to the left of the web address.
3. Select the icon to see site details and permissions. You’ll see a summary of the connection privacy that Chrome detects.
HTTPS (Secure Hyper Text Transfer Protocol) is a secure text transfer communication protocol. It is formed by adding the SSL (Secure Sockets Layer) protocol to the classic HTTP protocol.. In other words, it means that the communication of web sites with text is encrypted.
The protocol uses verified and trusted server certificates while encrypting.. When the user wants to access the HTTPS encrypted page, the encryption certificate of the page must be recognized by the browser.. If the page is running with a certificate recognized by the browser, the browser considers this page as safe.
If the certificate is not recognized by the browser, the user is asked whether he trusts the certificate.. For example, when you enter Monero Classic’s website, it says “Not secure” to the left of the address line.. When you click there, you will see the explanation below.
Informational sites
Cryptocurrency analysis has more information about the cryptocurrency ecosystem than before. there are many sites where we can be. As long as we have the willingness and time to research, we can easily benefit from these sites.. But the job ultimately comes down to our analysis-synthesis ability.. All the information seen may not reflect the truth.
In order for us to reach the right results, we must not have gained a certain research practice, which will occur over time if we do not get bored. disappeared from the market due to reasons such as “inability to convert into a product and low volume”. Therefore, we should closely follow the developments regarding the coins in our portfolio.. Most of the coins called “I bought it, I will forget it for a year, I won’t even look until then” are completely forgotten…
Two links where you can see the lost ones:
https://deadcoins.com /
https://www.coinopsy.com/dead-coins/
The building blocks of Crypto Fundamental Analysis
“ What is Crypto Fundamental Analysis?” The series will continue for several summers.. In the meantime, I will continue to promote crypto money projects as much as I can.
Some of these articles may be long and some may be short.
My aim is to talk about as many projects as possible.
I hope. there will be useful articles for you and the ecosystem…. However, what is meant by “reading” here is “understanding”, not a superficial action performed with the eyes or lips.
It is true that Fundamental Analysis in method differs somewhat in terms of traditional markets and the cryptocurrency market.
- Related: What are cryptocurrency banks and how do they work?
Cryptocurrency Fundamental Analysis (Part One)
What is Fundamental Analysis in Traditional Sense?
Fundamental Analysis is a research method to find the closest real value of stocks according to certain market conditions.. This method; By analyzing basic facts such as general economic factors affecting the price of the stock, sector problems, competition conditions, financial structures of companies, efficiency, profitability, liquidity, financial structure, distribution channels, management skills, export opportunities and how these affect the price of that stock, It is based on the determination of its true value.
What is Crypto Fundamental Analysis? (Second Part)
In the first part, we talked about traditional Fundamental Analysis. Today we will start to provide information about Fundamental Analysis in the cryptocurrency ecosystem.. So, we will try to answer the question of what is crypto fundamental analysis
What is Crypto Fundamental Analysis?
Fundamental Analysis; It is a method of investigating crypto money projects, the team behind them, the purpose, function and objectives of the coin/token in detail and determining whether they are investable or not. While I did not use this expression for cryptocurrencies; because I think this is not possible for now.
Here, it is necessary to look at different elements from classical fundamental analysis.
What is Crypto Fundamental Analysis? (Part Three)
What is Crypto Fundamental Analysis?
In the previous article, Fundamental Analysis is a dynamic process that requires experience but is highly variable, especially in the cryptocurrency market.
What do I mean?
For a while, the “hard fork” was on the agenda, affecting the price, “coin burn”, rebranding, website renewal, logo changed, announcements, roadmap , wallet updates, ICO, new partners, halving and recently IEOs etc.
These are our variables and we will encounter many more innovations in this ecosystem. This is exactly what I call dynamic, changing situation.. We have to follow the innovations in the market all the time.
I liken these to seasons, but seasons that are not seen again in general… That is, it affects the price for a while, but then it can become ordinary.. Or, an event/activity that causes a price increase in one coin may not work in another.
What is Crypto Fundamental Analysis? (Fourth Part)
In the third part, we talked about the dynamic structure of the cryptocurrency market and the logic of HODL.. We continue to explain about Crypto Fundamental Analysis.
What is Crypto Fundamental Analysis?
Fundamental Analysis is used to grow investments in a variety of ways.
crypto fundamentals analysis What is Crypto Fundamental Analysis? (Chapter Four)
Analysis of financial statements:
Key analysts focus on official documents that allow them to understand how companies are performing. At their starting point, many fundamental analysts dig deep into a company’s financial statements to see how profitable a company is, how fast it is growing, what kind of financial health it is in, and whether it has the ability to withstand tough economic times.
Crypto The situation in the money ecosystem is of course different.. In general, there is no system that works with the logic of the company and more decentralization is at the forefront (at least that’s what the claim is).. Therefore, for financial statement analysis, the crypto money in question;
What is Crypto Fundamental Analysis? (Section Five)
In Chapter Four, we talked about the purpose of using Fundamental Analysis and some questions to be asked.. “What is Crypto Fundamental Analysis?” we continue our series with the fifth part of our series.
Fundamental Analysis or Technical Analysis?
crypto fundamental analysis What is Crypto Fundamental Analysis? (Section Five)
There is no clear answer to this question, because it varies from person to person.. For some traders in the market, it is important not what is bought (fundamental analysis) but at what levels it is bought and sold (technical analysis).
Charts, prices, volumes, support and resistances, patterns and indicators for Technical Analysts it is important. They can only trade by looking at them and make a respectable effort.
Some Fundamental Analysts, after researching the project in detail, make purchases regardless of the price of the cryptocurrency and wait for their investment to be appreciated.
What is Crypto Fundamental Analysis? (Chapter Six)
What is Crypto Fundamental Analysis? (Chapter Six)
In Chapter Five, “Technical Analysis or Fundamental Analysis?” We tried to answer the question. “What is Crypto Fundamental Analysis?” We continue our series with the sixth episode.
How Can I Access Basic Analysis Data? Where should I start?
The first stop I go to when I start researching a project and mentioned a lot on Twitter: coincheckup.com
An “algorithm score” system has been created on this site, which I find very useful for Fundamental Analysis.. Information about coins that you can only find (perhaps not) that you can find after hours has been gathered.. You only have to read and evaluate it.
What is Cryptocurrency Fundamental Analysis? (Chapter Seven)
What is Crypto Fundamental Analysis? (Chapter Seven)
In Chapter Six, “How Can I Access Key Analysis Data? Where should I start?” We tried to find answers to your questions. “What is Crypto Fundamental Analysis?” we continue our series with the seventh chapter.
Case Review
Now let’s dive into some details and examine the titles here on Ripple.
Overview gives us an overview. You can get a lot of data just by looking at this section.
What is Cryptocurrency Fundamental Analysis? (Chapter Eight, The Cosmos-ATOM Example)
Cosmos; a blockchain ecosystem where thousands of DApps work collaboratively to create a new token economy.
Categories: Networking, Blockchain as a Service
The promotional video here goes beyond the introduction About 2 hours 13 minutes long. Normally, this section contains a few minutes of videos.
Our current stop is the Analysis section.. this is my favorite because, as I mentioned in the previous articles of the series, here is the data that you may not be able to find after hours of work.. After clicking SEE FULL DETAILS, the data you see is very important for you to get to know the project closely and have detailed information.
Please go to this page now and examine the content (it’s a hands-on study).
What is Cryptocurrency Fundamental Analysis? (Ninth Chapter)
In the first part; The name of the project, the symbol, the amount in circulation, the total supply, the price, whether it is an ICO or not, will a new token be produced, consensus model etc.
In the second part; Is it open source, GitHub link, community size (number of people), status of the project (is it a working product, is it a demo, is it just an idea), links: roadmap, whitepaper, FAQ (Frequently Asked Questions), Explorer
The third section contains the data about the team.
Then there are the Consultants and Members of the Board of Directors, project details, social media and communication, and finally the ICO information, respectively
What is Cryptocurrency Fundamental Analysis? (Chapter Ten)
The following headings are PRICE FACTS and UPDATES, PERFORMANCE STATS and HISTORICAL PERFORMANCE (ROI). Let’s examine one by one.
In this section, ATOM’s 1-hour, 24-hour and 7-day price movements; its value in USD, BTC and ETH; You can see its marketcap (market cap) and 24-hour trading volume.
In the middle is Cosmos’ promotional video, on the right is Coincheckup’s algo. We can see the score and its details.
We can follow the current news about Cosmos under the News heading at the bottom, short-term trading forecasts according to some technical analysis data in the middle, and event news on the right.
What is Cryptocurrency Fundamental Analysis? (Chapter Eleven)
In the previous section, we reviewed the entire Overview and Charts section of the Cosmos page on the Coincheckup site.. We continue today’s review with Predictions, Markets and News, Recources, Related, Forum and Events.
Price Estimation
This section is divided into three parts.. The first is Worldwide Money Flow. Here you will see the Cosmos price forecast based on worldwide money flows. These prices are only estimations, they are definitely not investment advice.
When certain conditions in the first 3 charts are met, the price of ATOM may rise to $28, $159 and $403, respectively.
What is Cryptocurrency Fundamental Analysis? (Chapter Twelve)
What is Crypto Fundamental Analysis? (Chapter Twelve)
If your Fundamental Analysis of a cryptocurrency is over and you’ve decided to buy it, there are two things left to do:
Looking at the Bitcoin chart
Buying doing a Technical Analysis of the cryptocurrency you want
These are essential to buying from the right place at the right time.
“I understand the second point, but why am I looking at the Bitcoin chart to buy an altcoin? I’m not going to buy Bitcoin!”
Let’s unpack this a bit.
Cryptocurrency market does not consist of coins that move completely independently of each other.. We also see coins rising/falling together or consecutively.
What is Cryptocurrency Fundamental Analysis? (Chapter Thirteen)
What is Crypto Fundamental Analysis? (Chapter Thirteen)
Beware of Scam Coins
Scam coins are one of our biggest problems in the market. Money can be lost to such organizations with the dream of making a lot of money instantly.. We need to be careful.
Fortunately, the market cleans up from time to time.
In the Bear Season, nearly 1000 cryptocurrency projects “died” due to “scams, inability to convert into products and low volume”. Let’s remember it again.
Can we detect these scam coins on our own?
bybit_koinmedya
-Yes, the explanations below can help you.
What is Cryptocurrency Fundamental Analysis? (Chapter Fourteen)
4. GitHub
GitHub is a storage service for software projects that use Git as a version control system and is free for open source projects.
It is important to check the project’s GitHub page so that the team is working or not. can be done. However, as in the example of Droplex I mentioned in the previous article, duplicate codes or uses that you will not understand if you are not a software developer can mislead you.. The only thing you can do at first is check GitHub and see if there is code.
You can write the name of the project you want on git-awards.com and review the statistics.. For example, when you type “Bitcoin” and press “enter”, the following information will appear:
What is Cryptocurrency Fundamental Analysis? (Section Fifteen)
News and Event Tracking
News and event tracking is very important, it allows us to take a position in advance. And coins are usually priced before the event, starting to drop on the day of the event. We have seen many examples of this. This is an insight to be gained through experience.
There are sites that we should definitely look at during the research process and that really make our job easier.. Most of these were either absent or not known until recently.
In this sense, coinmarketcal.com has facilitated the work of many people in the market.
This article was prepared by Barış Kardeş for KoinMedya.
Cryptocurrencies and Fundamental AnalysisCLICK HERE to review or buy my book.
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