A Fundamental Analysis of crypto needs to be done to find the intrinsic element. With this, we can determine how the future of crypto. Whether it will develop well or even collapse, the fundamental analysis is determined by several factors such as the project you want to do and the people behind the crypto.
Identifying the Purpose of a Crypto Coin In Form
Every coin in cryptocurrency has a purpose for making it and of course this is the first fundamental analysis that must be done, when we know how the original purpose of a crypto coin was made then we can see how the crypto company can generate income and how the developments that follow will be done in the future.
To find out the purpose of the crypto coin, you can view it using the application or just search the Coinmarketcap.com website
On this website you can see why the coin was formed and the purpose of the coin being formed, with the example above being solana or you can know the SOL code.
Solana is a web-scale blockchain that provides fast, secure, scalable and decentralized applications and marketplaces. Web-scale IT architecture refers to the computing environment that allows applications to be dissected into web services. Systems that claim to be web scale can handle rapid growth efficiently and don’t have bottlenecks that need to be redesigned at critical times. Big internet companies like Google, Facebook, and Amazon use a web-scale architecture.
We can conclude that solana can create a web by standardizing the application with this in mind. If something bad happens in the application, we can use the web as a replacement but with the same concept and the same tools in the application.
It’s like seeing large applications that initially used the web before they became an application such as Facebook, where at the beginning Facebook could only be accessed via the web but over time Facebook used the application, which means that when there is damage or an error in the application, it can still remain in the application. access via the web and there is no reduction in any aspect, so Solana’s company can earn from making web applications that scale.
Market Activities
This plays a role in knowing whether the crypto coin is still alive or has even been left behind and can even know if the coin is dead, by comparing the daily activities of the crypto being transacted and looking at the marketcap to draw conclusions in the future, with a large market cap it is increasingly difficult we see that there are people who pump or dumb because it requires a lot of purchases to change the direction of movement of a crypto coin.
The example given is the same crypto coin that is solana and for the website used is Coingecko.com
Solana has a market cap of 11 million USD and the transaction volume on May 11st, 2021 reached 600k, which means 18% of the market cap so everyone has their own conclusion and for me Solana still has enthusiasts, which means this coin is not lived in or dead, the other variable is that Solana previously had a very high increase because the project was recently released and now it has TP or take profit and later the transaction will increase if there is a new project created by Solana.
In conclusion, we can assess market activity to see if the coin is still in demand, but we can’t just rely on market activity because this can have an effect if crypto coins are sideways like this Solana because on April 14, 2021, it has experienced a high increase because the project he made and now solana is in his sideways period.
Internal In Crypto Coin
For internal factors, it can be seen from how the founders talk about the coin and see if the founder of the crypto coin really understands the coin and even knows how the steps will be taken in the future, this will see if the founder has a high dedication to the company or the crypto coin, we can see this on the crypto youtube account in question as well as the website address.
Availability of Talented Developers and Competent Leaders
The track record of each member will be very important for the sustainability of the crypto coin or company, therefore it is imperative to look for a track record for the development team and leaders in the company, if the developers and leaders who have a very good track record like winning the race, of course they will have a positive impact on the sustainability of the company and how the company carries out its creativity in the projects that will be made.
The easiest way to do this is to find the name of the development team and the leader behind the crypto coin, so if we know we can check social media and track records through googling later if one of the developers does something good it will be seen.
White Paper
is a document that contains an explanation of a problem that a project wants to solve, a solution to that problem, as well as a detailed description of the project, its creation, and its interaction with users.
With this, you can find out how the crypto coin is to overcome the existing problems and how the steps are taken to solve the problem, this white paper also contains how this crypto coin will develop in the future
You can access Solana on its website, namely https://solana.com/solana-whitepaper.pdf, of course, each crypto coin will have a different way of accessing the Whitepaper.
Community Forum
The community on a cryptocoin reflects whether the cryptocoin is still busy and actively discussed and traded, the more members in the community forum the better the effect given to the coin, with a community forum we can also access the latest news about coins and project updates that will be done or are being done.
Solana gives access to his website if you want to join or follow the community forum and can be accessed via https://solana.com/community#info and if you look at the community forum, Solana has quite a lot of active members, of course.
Information and Roadmap
Information and roadmaps on crypto coins are very important to know this is what can later affect the price of a coin, it can go up or even down, this information and roadmap can be seen on youtube accounts, social media, communities and websites, by watching or following the development of a company. cryptocurrencies can even be given direct information to the founder through our community, we can buy early and even avoid the risk of FOMO (fear of missing out).
With Solana releasing their new project on April 14, 2021, transactions on Solana coins increased dramatically and of course Solana experienced a very high increase after the project was issued, This will relate to the importance of information, namely we can see this project published on the account social twitter solana.
This chart shows how a very high increase was triggered in the Solana project on April 14, 2021 and of course this was not caused by someone else’s pump, the highest peak was on May 1, 2021 and Solana Back to sideways
In this case, it can be concluded that information really helps us to see opportunities and avoid risks from cryptocurrencies and by seeing or having info quickly, we certainly won’t be left behind when buying a crypto coin. In this case it also doesn’t cause FOMO.
Listed Exchange
The exchange that trades crypto assets demonstrates the strength of the project as well as its liquidity. If a crypto asset is listed on a large exchange, that means it can be said that the crypto coin can pass the specific analysis of the exchange team. Crypto assets can be said to be strong, and having a listing on a large exchange will add more liquidity, which means they can be traded quickly at any time.
By looking for info on the internet, Solana has been listed on major exchanges such as coin base and Binance, as already stated, it means that Solana has succeeded in being analyzed and has passed into the big exchanges.
With the existence of fundamental analysis in cryptocurrency, we dare to make long-term investments and not only trade or speculate, and for myself cryptocurrency certainly has a bright future because many cryptocurrencies have been used in several countries and have become a digital currency exchange tool in companies In particular, a very powerful blockchain system certainly attracts many people to make transactions using cryptocurrencies.
Author : Putu Adi Saputra
Participants in the Article Writing Competition with Indodax Academy
