What do Investors need to pay attention when do Fundamental Analysis?

Fundamental analysis is a method of analyzing the evolution of the fundamental market trend, relying more on objective facts and established data that has occurred, and predicting the future market through the analysis of past data. After understanding and mastering the patterns of the K-line (candlestick) charts, investors can use fundamental analysis to determine their investment strategy on a more macro level.

Fundamental information in the field of cryptocurrency trading includes the macro global financial environment (impact on cryptocurrency markets), the future prospects of the field to which the project belongs, and so on; micro fundamental information includes the project team's background, white paper analysis, product delivery progress, financing, Community operation, number of users, coin holder addresses, market capitalization analysis, profitability, and so on.

When conducting fundamental analysis, investors should keep two things in mind:

With the constant changes in market trends, fundamental analysis is constantly changing and modifying the analysis results. Cryptocurrency transactions are available 24 hours a day, seven days a week. Fundamental analysis, as a result, should never be quantifiable. It is very likely that losing money will result from blindly quantifying the results of fundamental analysis.

Fundamental analysis cannot exist in isolation; it must be used in conjunction with news and technical analysis. In practice, looking at a currency's short-term market situation and blindly determining the fundamental analysis while ignoring the impact of the macro environment can lead to short-term investment mistakes.