How to Apply Fundamental Analysis (FA) Technique in Crypto Trading?

September 15, 2018 Quick read

The cryptocurrency universe is a vast one where it is filled with computing acronyms and technical jargons. This could be easy for a tech person to figure out these concepts where a simple business person may face difficulties in understanding them. This could eventually prevent the person from investing and getting to know about the cryptocurrency. The fundamental analysis is a technique which is also done in the traditional trading market. This same method can be applied in cryptocurrency trading market which will make it simple enough for a business person or a normal person to understand the cryptocurrency.

The fundamental analysis of a traditional market includes equity, the financial health of the company, financial statements. But the fundamental analysis of a cryptocurrency includes the users of the cryptocurrency, mining process, coin supply, and developer team. This characteristic can help you assess a cryptocurrency which will, in turn, help you find an appropriate cryptocurrency to invest in. A fundamental analysis requires extensive research and knowledge in investment strategies. These things will ensure two things a robust cryptocurrency system for investment and a jack of all trade method to generate profit from the investment. Here is how you can apply fundamental analysis in crypto trading and see the results for yourself.

Crypto coin’s origin

There are thousands of cryptocurrency in the market where the origin of each cryptocurrency is different. The source of information is then twisted on the internet which makes it harder for the investor to investigate about the cryptocurrency. The white paper of the cryptocurrency will be available on the internet which can be referred for reliable information. There are many trusted blog websites of crypto news platforms and Instant Cryptocurrency Exchange platforms such as Evonax where you can find legitimate details about your desired cryptocurrency.

Cryptocurrency market history

As you are looking to trade cryptocurrencies it is important to keep notes on the market movements. The market history will allow you to judge the user base of the cryptocurrency and the type of community that is investing in the cryptocurrency. The graph of the market capital throughout the history will allow you to learn the market behaviour of the cryptocurrency which is really important for your investment.

Global rankings

The global rankings are based on the success rate of the cryptocurrency. This means that the profit that was generated by users with the help of the cryptocurrency is accounted in the rankings of the cryptocurrency. The global rankings can fluctuate with the fluctuating market which should be monitored by the investor. Hence the global rankings of the cryptocurrency matters for generating profit from the cryptocurrency.


Different cryptocurrencies have different compatibility parameters which should be known by the investors before investing. The investor has to see if the cryptocurrency is compatible with multiple wallets for easy storage and access. The cryptocurrency should also be compatible with major Cryptocurrency Exchange platforms, so you can trade the desired cryptocurrency easily. Hence things like these should be dealt with for easy trading.

Here is how you can perform a fundamental analysis of a cryptocurrency which can be useful for your cryptocurrency investment and trading. These methods can be followed even after a long time because of the cryptocurrency system that is currently functioning. If you follow the above-mentioned steps then you can be sure that your investment is completely secure in this volatile market.