I am aware of the connection fundamental analysis with the forex market. But have no idea how it affects cryptocurrency trading. If anyone can explain much appreciated.
Fundamental analysis in the context of the forex market typically involves looking at macroeconomic indicators such as GDP, inflation rates, interest rates, political stability, and economic policies of a country to assess the intrinsic value of its currency.
The world of cryptocurrencies, however, is somewhat different as they are not directly tied to any particular country’s economy. Nevertheless, fundamental analysis is still a crucial part of cryptocurrency trading. Here’s how it generally works:
- Project Analysis: This involves looking at the specific details of the cryptocurrency itself. What problem does it aim to solve? How does its underlying technology (like blockchain) work? What is its total and circulating supply? This helps traders understand whether the coin has long-term viability.
- Team Analysis: Who are the people behind the cryptocurrency? A team with a proven track record in business and technology increases the credibility of the project.
- Market Sentiment and News: Cryptocurrencies are highly responsive to market sentiment and news. Regulatory news, technological advancements, partnerships, or even tweets from influential figures can drastically affect the price.
- Community Support: The strength and activity level of a cryptocurrency’s community can be a strong indicator of its fundamental strength. A strong, active community can contribute to the development and adoption of a cryptocurrency.
- Token Economics: It is important to understand how the cryptocurrency’s tokens are distributed and used within the ecosystem. A well-designed token economy ensures that the incentives of all participants are aligned towards the success of the project.
- Adoption Rate: The rate at which a cryptocurrency is being adopted for real-world use cases can significantly affect its price. If more businesses start accepting a certain cryptocurrency, or it starts being used more in decentralised finance protocols, this can greatly increase its fundamental value.
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Very well said, Mondeoman! 
I feel like it’s been a while. 
I really missed seeing your posts and interacting with you! 
Crypto market super volatile and can be swayed by both serious stuff like fundamentals and more speculative factors.
Fundamental analysis in crypto trading is all about keeping up with the latest news, developments, and what the crypto community is buzzing about.
Crypto Twitter is a thing. News and updates and airdrops and scams and rumor spread like wild fire.
I missed you too. It took me some time to recover from three operations in the last year or so. Touch wood I am now feeling better than I have for the last five years. Diet, sleep, work/life balance and meditation are more important to me now than ever before. I still over work, but that is the price you pay when you love what you do. 
For cryptos, fundamental analysis might involve looking at factors like the technology behind a coin (like blockchain improvements), regulatory news, market sentiment, and even social media trends. Crypto is a pretty young field, so it can be more influenced by hype and sentiment compared to forex.
It’s vital to remember that the cryptocurrency market is extremely volatile and is influenced by a variety of factors such as mood, market manipulation, and external events. Fundamental analysis is one of the methods used to evaluate cryptocurrencies, and it should be used in association with other types of analysis, like as technical analysis and market sentiment analysis, to make good investment decisions.
I will point out one thing that here adoption rate plays a vital role because if you look back into the pandemic years, you will see that the price of crypto skyrocketed just because many traders used crypto for cross-border transaction.