1/19 This is my Fundamental Analysis 101 flood. Today I will cover why FA is important and what aspects I look into when I do research.I will go into details of those aspects on different floods. RT to reach out more people.
This was featured on @21Cryptos Magazine January issue
This was featured on @21Cryptos Magazine January issue
2/19 I want to thank @21Cryptos one more time for doing such a great job on the magazine and providing tons of useful information to us every month. If you haven’t subscribed to it yet go to their website and see a sample issue. 21cryptos.com
3/19 The number of new investors is increasing massively day by day. Most of them are attracted by the constant news they hear about Bitcoin. After a while, most of them will start to do what almost all of us did. “Ok. Bitcoin is fine, but what else is out there?”
4/19 “Can I find something else, some other project that can 100x my money in a short time? Can I find the next Bitcoin?” They will do that because of the success stories they hear about people: “I bought $1000 worth of Bitcoin back in 20XX and it is worth $$$$$$$$$ now.”
5/19 You have to understand that people love to brag about their success more than their failures. I bet there are tons of early adopters out there who tried to invest in other projects too, looking to make some more quick money.
6/19 Most likely they knew nothing about the dynamics and the fundamentals of those projects and right now their Bitcoin count is less than what it was 1-2 years ago (if they haven’t lost all of their initial investment).
7/19 At the time of this flood, on July 2018, there are 1649 projects on Coin Market Cap. There are tons of other projects, which are not on Coin Market Cap yet because CMC is asking for $100K daily volume before listing.
8/19 We can easily say that 90% of these projects won’t be around in 5 years.Don’t get me wrong, some people will make a big fortune out of these projects,but more people will suffer from losses.Those projects are here to steal your precious investment if you are not smart enough
9/19 In my opinion - before investing in any project - Fundamental Analysis should be the first thing you do. It doesn’t matter if you are a “day trader” or a “hodler”. Without knowing the basic fundamentals you are just gambling.
10/19 With Fundamental Analysis, you can predict the long term value of a project more precisely than any other method. In these series of floods, I am going to explain the steps of a Fundamental Analysis, and how to find the best information.
11/19 In my opinion the most important aspect of a particular project is the “Use Case”. There are tons of similar projects out there that offer the same thing over and over without any innovation.
12/19 If it has a real world use case & aiming to solve a real problem,for me it is always 1 step ahead from others. When I select projects I want to analyze, this is the first thing I look at. I prioritize “Use Case” because I believe it has the most chance of predicting success
13/19 In my opinion there are 3 types of projects that have a higher chance to survive in the long run
1.Privacy Coins
2.Decentralized Exchanges
3.Financial Services & Lending
The "target market" of these 3 areas are much larger than that of most others.
1.Privacy Coins
2.Decentralized Exchanges
3.Financial Services & Lending
The "target market" of these 3 areas are much larger than that of most others.
14/19 There are key features and figures you have to consider while doing your analysis/research. I divide them in 2 categories (Not all of them may be applicable to all projects):
15/19 Most of the time it is easier to do research on a high market cap project than the low cap one. They have larger communities behind them, and all of the questions you have to ask to analyze a coin are already asked several times.
16/19 You can see the examples on my Twitter. All the info I published about those projects over there was already available to me on different sources.
17/19 Low market caps need a deeper analysis. You have to spend more time if you want a complete analysis. You may need to contact the project founders/developers to get some answers.Potential gains might be higher with low caps, but don’t forget that they also have higher risk
18/19 I will start covering different parts of the Quantitative & Qualitative aspects of Fundamental Analysis in different floods. Please retweet to reach out more people. If you don’t retweet, Bulldog will be sad. Stay tuned!
19/19 It goes without saying but:
This is not an investment advice. Do your own research and never trust anyone with your money. Especially a bulldog :)
This is not an investment advice. Do your own research and never trust anyone with your money. Especially a bulldog :)
