CryptoBukz

Take this free bit of advice, "Answer these questions the next time you want to make a long-term in any coin or token".

What exactly is a digital asset?

What technology uses the asset?

Who developed the asset?

Who is backing it?

Who is in it?

What type of market, industry, or subindustry does it operate in?

What other digital asset belongs to the same and sector?

What are the underlying activities' functional requirements or value propositions, and is there any specific information that would help it stand out from similar assets or be grouped with it?

Answering these questions sincerely is necessary.

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Is cryptocurrency bringing about better solutions to money issues and a cashless financial era?

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ChukwuEbuka on Twitter “Why should you care about cryptocurrency that is not controlled by anyone? 🧵”

Do long-term crypto investors find success with fundamental analysis?
True, and this is why.

Brad Garlinghouse once said, "If the cryptocurrency market as a whole or a digital asset is solving an issue, it's going to generate some value."

I completely agree with him on this.

Fundamental analysis is a way to determine the value of a financial asset.

Fundamental analysts use this method to analyze the economic aspects of an asset.

It may also include some macroeconomic factors such as;

The economic state, market condition, and the industries using the asset.

Fundamental analysis for crypto assets considers the on-chain metrics.

A growing field of data science that concentrates on open blockchain data.

These valuation metrics may include;

The network hash rates

The top holders

Market capitalization

Trading volume

The number of addresses.

It is possible to enter or exit trades with the data derived from fundamental analysis.

Many investors or traders use this to make their investment decisions.

So understanding an asset from different angles is crucial when investing for the long term.

Ignore the short-term noise in asset prices and focus on its valuation metrics.

If an asset has strong fundamentals, it will grow over time and generate wealth for its investors.

In the crypto market, there are many examples.

Take bitcoin as an example.

Consider the feasibility of using bitcoin as a medium of exchange.

Why is bitcoin unique compared to traditional currency?

One could say that its uniqueness is a result of its 21 million coin fixed supply.

Or we can also mention how it makes international payments easy and faster.

In the end, adoption might increase as a result of these kinds of problems it's solving.

Additionally, its intrinsic worth can increase as Bitcoin adoption rises globally.

Global events like the BTC halving are another element that impacts intrinsic value.

Events widely anticipated and covered in the media can affect coin prices.

But, unexpected events can also have the same effect.

News like the government's decision to ban bitcoin can affect price volatility.

Even though it's somewhat impossible to foresee these events, they still emerge, and you must be ready.

Projects like Axie Infinity, Solana, Polygon Matic, and Avax come to mind as a few examples.

Since their launch, each of these projects has delivered over 1000%.

If you had bought Avax in August 2021 and kept it until now, you would have made a 50% profit.

The rate of wealth creation for investors increases with the project's growth.

Some projects, like Solana, have delivered close to 9000% since their launch.

Now imagine the amount you can generate if you invest in assets with strong fundamentals.

You can also invest in cryptocurrencies based on your fundamental analysis.

All you need to know is whether an asset's intrinsic value is over or underpriced compared to its current market price.

When newbie traders seek advice on how to begin trading profitably, they often find the instruction to follow the trend.

The advice is to buy if it's an uptrend and sell if it's a downtrend.

This advice makes a lot of sense.

But it becomes clear that nothing is as straightforward in practice.

You need more specific guidance if you want to profit from trading a trending market.

Don't miss this one

Market Structure: How To Identify And Trade Trending Market One of the basic skills you’ll need as a trader is the ability to recognize the market structure, which is necessary for implementing…

Learn how to keep your bitcoin safe in my new published article.

Where Is The Best Place To Keep Your Bitcoin Safe? Everything you need to store Bitcoin is a wallet with private keys that will allow you to access bitcoin addresses and send money.Thanks for reading bukzofwakanda’s Newsletter! Subscribe for free to receive new posts and support my work. But which one is best for you?

3 Deadly Mistakes Most Newbie Crypto Traders Make

1. Not setting goals ❌

2. Thinking short term ❌

3. Not having a trading strategy❌

4. Not following me or retweeting this so others can learn.❌

Please stop borrowing to invest in crypto.

I have noticed issues for those looking to get into crypto is Funding.

There're other ways you can earn in crypto, even if you don't have money.

Na just your phone and internet connection you need.