Before we explore what makes blockchain technology valuable and innovative, let’s continue exploring the peripheral of crypto. In this article I will share my personal tools and provide a brief introduction to Fundamental Analysis.
- Blockfolio — This is most frequently used tool because it allows me to track the coins that I want to follow (both that I own as well as ones I’m watching). The other major reason why I use the app is the news section. They keep it simple, which I like. Blockfolio tracks two of the sites I recommend below. It’s a convenient tool for keeping quick tabs on your favorite coins and also keeping up to date on daily crypto news, all in one simple, non-obtrusive app. www.Blockfolio.com
- Websites — CoinDesk.com is great for accurate and analytical reporting by industry experts on business and fintech. CoinTelegraph.com is geared more toward retail investors and casual observers. CoinDesk is more for tech geeks and CoinTel is more for average folks. CryptoPanic.com is a news aggregator that includes social media posts along with macro and micro news. Basically you get news for all types of crypto projects including social media news so you keep a pulse on everything, including articles from both CoinDesk and CoinTel(which can also become overwhelming).
- Social Media — Social media is great for second-by-second information, but it’s also a double edged sword. There is no shortage of hype and misinformation. Twitter and Reddit are great resources for retrieving up-to-date information on the macro industry as well as for the latest news on your favorite projects. Keep in mind it’s easy to get sucked into a vacuum of hype, so it’s always good to question projects and stay analytical. I like using social media as a pulse. Don’t believe everything you read on the internet!
- CoinMarketCap or other comprehensive coin/exchange index. Tracking exchanges and volumes is a great way of “following the money.” Information is everything. Sometimes you’ll see a quick increase and determine it’s artificial “pumping” whereas other times you’ll see a healthy increase in volume day after day. This is just one tool of many to use; they are all to be used in coordination with each other.
Remember, these tools take time to learn, and most importantly, they are most effectively used with a strong understanding of Fundamental Analysis:
Fundamental analysis is a method of evaluating a security (or crypto) in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors. Fundamental analysts study anything that can affect the security’s value, including macroeconomic factors such as the overall economy and industry conditions, and microeconomic factors such as financial conditions and company management. The end goal of fundamental analysis is to produce a quantitative value that an investor can compare with a security’s current price, thus indicating whether the security is undervalued or overvalued.
Before we get into the next article on Fundamental Analysis in Cryptocurrency, I believe fundamentally that currently, the greatest use case for most crypto projects is speculation. With that being said, exercise caution in searching for only the strongest and most purposeful projects. That is how I approach evaluating all investments, and the same applies with crypto projects.
Disclaimer: This blog is for educational purposes only. Do not use any information provided by myself or this blog as professional/financial/legal advice or personal suggestion. Please seek financial, legal, and accounting professionals before making any financial, legal, or accounting decisions related to investing.