What is Crypto Fundamental Analysis? (First part)
Hello dear readers. Starting today, I am on Koinmedya with articles on crypto money ecosystem, especially Crypto Fundamental Analysis.. I would like to thank them for giving us the opportunity to reach you through this channel.
The building blocks of Crypto Fundamental Analysis
“What is Crypto Fundamental Analysis?” The series will continue for several summers.. In the meantime, I will continue to promote crypto money projects as much as I can.
Some of these articles may be long and some may be short.
My aim is to talk about as many projects as possible.
I hope. there will be useful articles for you and the ecosystem…
Please See: Bitcoin news, agenda and last minute developments
Fundamental Analysis, to make the right decisions the ability to read all the information that companies present about themselves. However, what is meant by “reading” here is “understanding”, not a superficial action performed with the eyes or lips.
It is true that Fundamental Analysis has some differences in method in terms of traditional markets and crypto money market.
- related: What are cryptocurrency banks and how do they work?
What is Fundamental Analysis in the Traditional Sense?
Fundamental Analysis is a research method for finding the closest real value of stocks according to certain market conditions.. This method; By analyzing basic facts such as general economic factors affecting the price of the stock, sector problems, competition conditions, financial structures of companies, efficiency, profitability, liquidity, financial structure, distribution channels, management skills, export opportunities and how these affect the price of that stock,
According to Karslı:
- Basic analysis is an analysis method for calculating the closest real value of stocks according to certain market conditions.
- All kinds of information about this stock are collected.
- As a result of all the data collected, if the real value of the stock is higher than the market price, an investment is made or vice versa, if the real value of the stock is lower than the market price, no investment is made.
- General economic factors affecting the value of stocks, sector problems, competition conditions, financial conditions of companies, efficiency, profitability, issuance t potential, corporate management quality etc.. The facts are analyzed.
- By examining in detail how these facts affect the value of stocks, it is aimed to determine the investment value or real value of stocks.
- Proponents of fundamental analysis, investing in a stock decides whether it is worth doing by comparing the value determined as a result of the fundamental analysis with the market price.
- If the actual value reached as a result of the analysis is higher than the market price, it decides to invest, if it is lower than the market price, it decides not to invest in this stock.
When calculating the real value of a stock according to the Fundamental Analysis method, all information about that stock is grouped from macro level to micro level and analyzed in four stages.. These are respectively “Economic Analysis” in which the general state of the economy and its effects on the stock price are examined, “Industry Analysis” in which the most suitable and advantageous sector is selected and this sector is examined in depth according to the information and data we have obtained after the economic analysis, “Company Analysis”, in which the financial statements and financial status of operating companies are examined in depth, and “Share Analysis”, which is the last stage.
While examining these; Many details such as national and global economy, Gross National Product, privatization, inflation, interest rate, budget deficit, exchange rate, foreign exchange reserve, foreign capital, employment should be taken into account.
In the second section, “Crypto What is Crypto Fundamental Analysis by Money Market?” We will try to find the answer to the question.
- related: The importance of candlesticks in crypto charts and the critical tips it gives us
Bibliography
Karasin, G. (1986). Capital Market Analysis. Ankara: Capital Markets Board Publications.
Karslı, M. (2004). Capital Market, Stock Exchange, Securities. Istanbul: Alfa Publications.
Birgili, E. (1994), Stock Efficiency Analysis and Evaluation in Directing Savings, PhD Thesis, Dokuz Eylul University Institute of Social Sciences.
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