Crypto Fundamental Analysis

Crypto Fundamental Analysis

In this crypto fundamental analysis guide, we intend to offer you the way on how to conduct the investigation. The crypto trading psychology analysis is crucial for the success of your trading operations. Thus, we made a process that would help you decipher market trends. The article identifies sources from which you should gather information and ways to analyze it. Related articles are Technical Analysis and Avoid Cryprtocurrency Trading Mistakes.

What is Fundamental Analysis?

Fundamental analysis is a qualitative approach to market information investigation. It takes the data from the market and delves deep into them for meaning. The meaning of market movements is thus characterized as psychological since supply and demand are led by people who participate in the market. Qualitative measurement also seeks to find hidden meanings behind events, action, and reactions of major players in the industry.

Since cryptocurrency is still small compared to other financial sectors, impacts made by participants can be felt much more keenly. Thus, fundamental analysis strives to identify reasons behind changes in the market, as well as future implications. Sources of information are crucially important to have accurate data for this analysis to be correct. 

Why Should You Make Your Own Analysis?

Quantitative methods found might get you a large amount of data but it does not explain why exactly results occurred. Also, other traders might view the market trends from their perspective, relative to their professional and cultural backgrounds. Your own perspective is thus important since you know the best what suits you.

Trading according to the market trends is a complex process. Thus, to include all necessary information, you yourself should make sure to gather all sources in one place. Then, based on your own knowledge, you make the analysis that would help your crypto and Bitcoin trading efforts. Traders do need to connect technical and fundamental investigations, as they would confirm findings that both have come up with.

Sources of Information

As mentioned before, finding the right sources is crucially important. Without correct information, fundamental analysis would give all the wrong answers. Wrong conclusions often (if not always) lead towards losses, especially when trading cryptocurrencies.

The first line of information that can be interesting is news articles and feeds. There are several platforms that offer the service, recording market trends, and reasons behind them. Obvious choices in this aspect are crypto-related platforms, them being Crypto News, Cryptocurrency News, CoinDesk, and Coin Telegraph. These provide news regarding development in the market in terms of hard & soft forks, crypto trading regulations, and large companies’ involvement. You can check out CoinDesk’s website in the picture below.

Next in line are platforms where you wish to trade coins at. These crypto trading platforms usually make annual announcements about their results, market performance, as well as their own development. This source provides info on how platform wishes to move forward and if they will implement improvements in the future.

Community forums are excellent sources of information regarding traders’ market. Here, you can gain information regarding scams, new tools available, cryptocurrencies’ development and much more. These websites are responsive as well since you can post questions and get answers directly from fellow traders. The most famous examples are Bitcoin Talk, Quora, Crypto Compare, Reddit, and Medium.

Lastly, you can get needed information about the market from blockchain developers themselves. Each cryptocurrency has its own website where developers post their news and development plans. You can also get whitepapers, which hold the really large amount of data. These can help you predict the future of the currency you wish to trade. You can check out Ripple’s platform for example, in a snapshot below.

Analysis of Events

Geopolitical events can have a large impact on cryptocurrencies. This is especially true if regulations are in question. Many countries are now taking a more active role in regulating cryptos use to the market’s growth. In many cases, agencies have taken up negative stance on digital coins, which would lead towards price drops.

China, for example, banned ICOs and has pressured platforms to adhere to its own regulations regarding financial services. Knowing about these events and their implications can lead you to either postpone your trade or make order according to what future may hold. Thus, combining sources, you should also go through events in more detail to ensure you have the right information.

Coin's Supply and Demand

Once you have sources, next in line is to figure out the supply and demand matrix of the selected coin. Trading crypto depends on how the coin is supplied to the market and what demand exists at this time. Blockchain records might give you hints on the speed of transactions, amount traded and a number of traders involved.

Blockchain platforms offer their own records upon which you can judge just how popular is coin is in the market. The technical aspect of supply is also important. Some coins are released annually by developers while others are mined. If latter is the case, then trends regarding the difficulty of mining would show you what future holds for that coin.

Implications for the Future

This is probably the most crucial part of the fundamental analysis. What does the future hold for the chosen coin. Trading without knowing what might happen in next hour can lead you to incurring losses. Putting all sources to use, you should include technical analysis as well. This will allow you to identify trends in terms of price picks and falls.

Thus, we emphasized the importance of deciphering information to better predict future trends. Past and present allow us to properly see what the next day might bring. Suffice to say, it is not 100% accurate, as many unseen circumstances can complicate the process. Cryptocurrencies fluctuate greatly on an hourly basis, making their predictions quite hard to catch.


In this guide about crypto fundamental analysis, we went over the qualitative aspect of crypto market’s investigation. It is important to find adequate sources of information, in terms of news platforms, blockchain development, and platforms’ announcements. We also brought attention to geopolitical events and their impact on cryptocurrencies, especially regulations.

We do need to mention that qualitative analysis needs to connect with technical analysis. Confirming findings from both sides would lead towards inflation that can be used to make successful trading activities.

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