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How to DYOR - Fundamental analysis

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by COINS NEWS 236 Views

I think this is a good opportunity to share how I do my fundamental analysis (DYOR) since:
- many newcomers have joined the cryptospace and CC
- most crypto-assets are on discount
- its been a long time since receiving constructive criticism and I'm open to update some stuff if necessary

This material is collected by plenty of previous posts and tailored to my needs.

Fundamental Analysis

Where?

  • White paper
  • Website
  • GitHub Development
    - Is engineering team active?
    -Check dates of updates
  • Roadmap
    - Is it realistic/achievable?
    - Have the failed deliver what was promised on the past dates?
  • Social Media
    - Linkedin
    - Twitter
    - Reddit
    - Telegram
    - Google β€œ[insert coin name] scam
    - Are they constantly announcing partnerships? If they are frequent low quality posts, I assume they are just trying to pump the market and I'll avoid it.
    - Are the users hostile towards people who are critical of their project, or who are asking questions? If it is a brainwashed, angry, subreddit that can't have any questions, I usually try and avoid.

  1. The problem
    - What problem are they addressing?
    - Why is it important to solve this problem?
  2. The Solution
    - Why are they using the blockchain - does it add value here?
    - What are the pros and cons to using the blockchain here and why would the blockchain improve the current alternative? (right now blockchains are slow and costly in most cases)
    - Does this project require a new technology to be built
    - What is their proposed solution to the problem?
    - Are there other solutions to this problem?
    - Why is this solution better than other solutions at addressing the problem?
    - Has the solution been explained clearly and succinctly?
    - Can you describe the solution in simple words? Is this solution live and usable?
  3. Tokenomics
    - What was the initial distribution of the coin?
    - How are new coins created?
    - Is there a max cap? If so, what % of coins are created already? If not, oh boy... What is the vesting schedule?
    - What is the market cap?
    - How centralized/decentralized is the coin? Is it decentralized at all?
    - Could someone turn it "off" if they wanted to?
    - What are the demand factors of the token??
  4. The Team
    - Never buy when the team is non doxxed (except for bitcoin)
    - Have they ran a successful company before?
    - Where have they worked before?
    - Does this team have the ability to build this technology?
    - Are their engineers published in this industry?
    - Do they have product managers and customer support?
    - Can the management team implement this solution?
    - How does their previous experience relate to the opportunity?
    - Why are they qualified to implement this particular solution and deliver it to market?
    - What is missing from their team?
    - How β€œhungry” is the management team?
    - Doesn't shill about the price of their token on a constant basis. Heavily advertises their whitepaper/their "realistic" roadmap.
  5. The Market
    - How large is the overall market?
    - Which exchanges can I use to trade it.
    - Check the volume, liquidity.
    - To which Coingecko category does this project belong?
    - How large is the market segment being targeted?
    - Who will be the customers?
    - How will they get people to use their product?
    - Why will people use this product?
    - What do people use now?
    - Why will people switch from their current product?
  6. The Competition
    - Market cap of top competitors How is their solution/product differentiated from the market?
    - What technologies may compete with theirs in the future?
    - What is their unique value proposition?
    - Are there any barriers to entry that will make it difficult for competitors to enter this market? - - What will new entrants to this space do? How will this team respond?
  7. Transparency
    - Has anyone ever seen their product?
    - Do you know how their product will work or is it vaporware?
    - Do they have a github where people can go and check their code?
    - Does the team have a Slack channel where you can go and talk to members of the team?
    - How responsive is the team?

A. Fundamental analysis answers to the question: WHAT should I buy?
B. Technical analysis (intelligent DCA): When should I buy?
C. Portfolio allocation/diversification (have some basic understanding to create a balanced portfolio): How much should I buy?

Combine A, B, C with some patience and I guarantee you that you won't regret it.

Respect your hard-earned money!

submitted by /u/Actnaou
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