Fundamental analysis includes study of international news, social force, economic announcement, government policies and many other news and events that effect economic markets.
Traders always have to face challenges in the market. Fundamental analysis can be very complex and sometimes very difficult to analyze but understanding of general principles of fundamental analysis in particular situation can prove to be very helpful for proper analysis of market. Proper fundamental analysis will be helpful to understand the potential points where a trader can earn profit.
It is necessary for a trader having an eye on fundamental news to get good profit. For example in 2017 the BTC hardfork news caused severe crash of the market. In such situations traders having command over fundamental analysis can survive well in the market.
Successful traders open and close their positions on the basis of Technical and Fundamental analysis.
Few things must be kept in mind before trading crypto currencies and taking positions.
Good crypto currency projects developers give info about ongoing development of the project. Follow the project team to see how much they are active and do communication through social media or other available sources to update their clients. Active and efficient developers describe the features of their project clearly that will be implemented in future. In simple words, they give a clear roadmap of their project and make it more and more solid by solid developments and consistent working.
It is important to look at the characteristics of a coin. Look at the marketcap, supply, platforms to use the coin and roadmap of the coin. If the coin is really useful for use using at different platforms, then it is really worth to consider. If there isn’t really practical use of the coin, then it is really a shitcoin.
A reliable source of information is really necessary. In order to assess a coin, find out the key sources of information. The authentic sources of information of particular crypto currency is its whitepaper, coin’s slack channel or blog, community forums like Bitcointalk or Reddit, coin’s official twitter accounts.