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Unlock the secrets of the fundamental cryptocurrency: a guide to determine the true value

The cryptocurrency world has experienced unprecedented growth and volatility in recent years, the prices fluctuating wildly from one day to the next. While some investors have made a fortune by buying and retaining cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH), others have lost significant amounts due to speculation.

An often neglected aspect of cryptocurrency is its fundamental value, which refers to the intrinsic value and the marketing of a token. The determination of true value is crucial to making informed investment decisions, understanding market trends and predicting future price movements. In this article, we will immerse ourselves in the concept of fundamental evaluation and provide a complete guide on how to determine the true value of the tokens.

Understand the fundamental evaluation

The fundamental evaluation consists in analyzing the intrinsic value of a company or a company by examining its main engines such as income, profitability, the debt / investment capital ratio, cash flows and other financial measures. In the context of cryptocurrencies, the fundamental evaluation refers to the evaluation of the market capitalization of a token, commercial volume and liquidity.

Capitalization Market: a key engine

The market capitalization of a cryptocurrency (MTC) is its total value represented by all the parts or tokens in progress. It is calculated as the total number of parts multiplied by the price per room. The higher the MTC, the more important the token is to appreciate in value.

* Why the market capitalization is important : a large market capitalization indicates a strong demand and support of investors.

* How to calculate market capitalization : you can calculate market capitalization using tools like CoinMarketCap or Cryptocompare.

Trading volume: the impulse of liquidity

Trading volume is another crucial fundamental metric of cryptocurrencies. He measures the number of transactions that a token has had on exchanges. High negotiation volume indicates high demand and liquidity, which can help stabilize prices and increase potential yields.

* Why the volume of negotiation is significant : a high volume of trading increases the price of the token market compared to the offer.

* How to calculate the volume of trading : you can calculate the volume of trading using CoinmarketCap or Cryptocompare data.

Liquidity: the safety net

Liquidity refers to the capacity of a token to be purchased and sold easily without significant price fluctuations. A high level of liquidity indicates that investors are comfortable with the potential risks associated with the token.

* Why liquidity is important : high liquidity offers investors confidence in their investment.

* How to calculate liquidity : You can calculate liquidity using CoinmarketCap or Cryptocompare data.

Other key engines

In addition to market capitalization, commercial volume and liquidity, the other key engines of the fundamental value of a token include:

• Income growth: an increasing source of income can increase the potential for future appreciation.

• Beneficiary margins: high beneficiary margins can justify higher prices and increase investor confidence.

• Technical analysis: trend lines, graphic models and other technical indicators can help identify potential price movements.

Conclusion

The determination of the true value of the tokens requires a complete understanding of fundamental measures such as market capitalization, commercial volume, liquidity, etc. By analyzing these main engines, investors can have an overview of the intrinsic value of a token and make informed investment decisions. While the cryptocurrency landscape continues to evolve, it is essential to stay up to date with the latest market trends and analyzes.

Resources

* Coinmarketcap : A complete platform to follow cryptocurrencies.