The cryptocurrency market has been on fire with BTC and AltCoins riding on the investment euphoria. As there have been rigorous price movements, investors are crowding the exchanges to find out USDT to INR, BTC to USDT prices. Stable tokens have also experienced fresh demand lately. But if you are a seasoned investor or a rookie trying to explore the market for the very first time, the fundamental analysis makes so much sense. Generally, newbies are quite driven by these fluctuating sentiments, but a proper approach can help you make considerable gains in the process.
In the cryptocurrency market, slight developments can push prices significantly. It has the potential to show to the community the potential of the project like BCH or Bitcoin hard-forking in 2017 to BCH or Bitcoin-cash. The market had picked up the pace since people wished to make micropayments and BCH accommodates that school of thought. The ripple-effect was BTC going an all-time high to marking a US$20,000 mark at the exchange. But significant fall followed, causing a complete market crash to BTC going as low as US$5000 to US$7000 in 2020. A span of just 3 years, many lost a lot in the process to make quick money, especially, in India, where people have the mentality of buying, holding and selling without much TA or Technical Analysis.
Similarly, ICO was also another good move forward back in 2017, but scams in ICO completely made that concept redundant and non-feasible for long term sustainability. So a concept which was revolutionary and game-changing at one point in time in the past makes no sense in the present. Having said that, to eliminate your confusion and make good investments that yield, you need a good fundamental analysis. Here’s how to do it being a rookie or a newbie;
Demystifying Fundamental Analysis for Quick Gains at The Exchange
Finding Out the Target Market
When you have to invest in companies like Apple, Tesla or Google, you check their balance sheets, market capitalization and growth prospects. Based on this analysis, you likely invest in their shares. But you cannot do the same for cryptocurrencies like BTC, ETH, USDT or USDC, or other AltCoins. Since this brings a lot of speculation at the forefront, knowing the targeted market can make so much sense for safeguarding your investment. Just pick a niche market that is growing, like the DeFi boom catalyzing Ethereum lately. The receptiveness however must be carefully analyzed to find out what new solutions are in the process to replace the same. Give a clear look at all the probable solutions that could likely come up. Like ETH price was facing challenges with respect to scalability, when Polkadot and Avalance anticipated the same a way back long to introduce the Dot and AVAX tokens just in time to power-up DeFi projects. Even they are yet to make an impact. So, caution is the key.
Competition in the Market
You need to look at the competition in the market and based on the same analyze the market possibilities. For example, when MakerDAO launched DAI to launch their DeFi project of yield farming, AAVE launched the same with fluctuating rate of interest for interest compounding. Similarly, Synthetic also introduced the same concept of yield farming only but with the concept of minting synths without actually holding any collateralization for flash loans. Having said that, all these projects, even though developed on the concept of decentralized finance and yield farming, are still performing significantly in the competition. Similar approach you must keep when you are investing in USDT or USDC or USDT to INR liquidity pool for consistent regular returns on any probable future revolutionary protocols.
Your fundamental analysis will help substantiate the same concept with new features like the yield farming game that has been lately developing in the DeFi ecosystem.
Team Behind Plan
A good idea thrives on the team backing the same with new adoption guidelines. While investing in new projects to make significant super-normal profits, make it a point to see the team backing those projects. If you are doing the same, it will help you find out the probabilities of making a good return if you are investing in the USDT to INR or USDT to BTC liquidity pool.
Whitepaper of the Business
Whitepaper gives you all technical details like how the project works that you wish to invest on. Along with that, they give all the clearance of the revenue model and the scope for scalability. These could help you in finalizing whether the prices of such tokens will go up considering the problems they are solving. Like, the BCH prices in India moved significantly driven by micro-payment features offered.
Tokenomics of the Project
Again highlighting the tokenomics concept where the project identifies the core problem and solves the same through their development. That’s how the tokenomics work and you should make investment into projects only that show a sustainable tokenomics model and ability to solve all future challenges.
There is always a good approach to consultant experts who are pro in handling investment and future scope of multiple projects in the market. PCEX Member gives that leverage to investors where they are trained and educated about all new protocols and their scope for making significant returns by investing on such tokens. Whether you chose USDT, USDC, BTC, BCH, Monero or any other token, the experts will give you the brief so that you are always ahead of the curve for investments in a highly volatile cryptocurrency market.