What are the fundamentals of cryptocurrency?

What are the fundamentals of cryptocurrency?

What are the fundamentals of cryptocurrency?
I need to start off by saying this is not financial advice so if you are looking for that this show isn’t for you. The content of this podcast episode is for informational purposes only. The opinions expressed here are not meant to be taken as financial, investment, or any other advice. I really wanted to touch on this topic. This is probably a little advanced for basics but I felt it was helpful to understand this part when digging further into the cryptocurrency markets and how all of this starts to work.
So far in the episodes of the Crypto 101 show you’ve learned what cryptocurrency is, including key terms and basics, why cryptocurrency was created, including a brief history of it, how cryptocurrency is worth anything including its store of value, and if they are safe and defining the difference of being safe to purchase versus safe as an investment. So I think it’s good to start talking a little about the fundamentals of cryptocurrency.
The term ‘fundamentals’ literally means — a foundation, a basis — from which you use to understand something. Investors use what is called foundation analysis which is how they establish the "intrinsic value" or objective calculation of an asset or business. They can look at a number of internal and external factors, and the main goal is to determine whether the said asset or business is overvalued or undervalued. They can then leverage that information to strategically enter or exit positions of the asset. This should not be confused with technical analysis which is financial analysis that uses patterns in market data to identify trends and make predictions. Being able to separate the market price from the "true" value of a network is an excellent skill to have when trading.
The problem is cryptocurrency networks can't really be assessed through the same lens as traditional fundamental analysis.The fundamental beliefs of currencies are typically units of measurement, stores of value and mediums of exchange. I want to clarify here there’s different outcomes for what you choose to do with cryptocurrency. Do you choose to hold or “HODL” your cryptocurrencies or do you choose to trade it with riding the peaks and valleys? These fundamentals can be different depending on your outcome. Also each coin is different from the next.
Crypto fundamental analysis involves taking a deep dive into the available information about a financial asset. For instance, you might look at its use cases, the amount of people using it, or the team behind the project. Your goal is to reach a conclusion on whether the asset is overvalued or undervalued. The concept of fundamental analysis is simple: if you see a coin with a value that isn’t proportional to its price, it may be worth looking into. The challenge with fundamental analysis is identifying projects with high potential. And to accurately determine their future value, you’ll need to do a lot of research. So let’s break down the 5 basic fundamentals you should at least look at.

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