The methodology of evaluating a company based on different micro- and macroeconomic conditions originated in the stock market. Any public project in which people invest is a business, and it has a lot of indicators that need to be evaluated. The way to evaluate these indicators is called "fundamental analysis" (hereafter the FA). You can find “fundamental” meaning in our [trader's dictionary](https://resonanceholding.com/dictionary).

>The "father" of this modern type of market analysis is Benjamin Graham, who published his Security Analysis back in 1934. This book is considered the Bible for investors all over the world thus far. His most brilliant follower is Warren Buffett, who has long been at the top of the richest people in the world.

Since the middle of the 20th century, the market has changed; not only the types of analysis have transformed, but also the assets being analyzed. Therefore, today the fundamental analysis of stocks is applicable not only to commodity and stock analysis but also to the crypto market. 

## [Fundamental analysis of crypto assets](#fundamental-analysis)

Let's take a look at how to analyze stocks and crypto to determine whether or not to invest in an asset. 

### [Macro level](#macro)

At the macro level, there are the following three areas of study within the financial analysis:
1. Current global news, the general economic and political background, the favorability of the investment climate. 
2. Status of industries, determination of the greatest interest in a particular industry. 
3. Researching the news background of the company, from current reporting to transactions of various scales.

### [Micro level](#micro)

At the micro level, the following indicators must be noted: 
- Tokenomics (business model, methods of using a crypto asset, blockchain activity)
- The project development team (and other internal factors)
- Economic situation in the world
- User interest in crypto currencies (demand among market participants)
- News background and economic forecasts

Let's delve into each indicator and its meaning.

1. **Financial metrics**, i.e. data on how the asset is currently traded, as well as what its liquidity and distribution patterns are.
2. **The number of transactions** as an indicator of chain activity. The more transactions, the greater the need for this project. However, you have to be careful with this indicator. Onchain activity can increase even if one user transfers funds between his own wallets.
3. **Information about the number of transactions** within the blockchain. An increase in this indicator indicates an increase in interest in the coin.
4. **The development team** is a group of specialists who undertake the development and promotion of a given product to the masses. Here you can take note of the team member’s background, the presence of successful cases in the past, how the community looks like on GitHub, and what the activity is like. A coin, the development of which has never stopped, may be more attractive than one, the repository of which has not been updated over two years.
5. **User interest**, i.e. in what way the developer's project will be useful to an average user, whether there is something in their project that can really interest, and whether it will be useful in the future.

>It is very important to know how much money has been spent on development and marketing in order to understand how long the project will last and what its market value is. You also need to know if the project has investors. Why is this so important? When funds run out, new investments are made by selling coins on the market. This additional supply lowers the coin price.

Remember that no project team will ever say anything bad about itself, and some projects may even hide certain information from their users. When the project is listed on the exchange, most investors will simply dump their tokens, which will further lower the asset price.\
\
Let's look at some real market examples.\
\
**Example 1:**\
\
In this example, we see some players dumping the asset once it was listed on the exchange, thus lowering the token price.

![Фундаментальный_анализ_пример_1](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Фундаментальный_анализ_пример_1/public)

Here is an **example №2** of big players dumping right after a listing:

![Фундаментальный_анализ_пример_2](https://resonanceholding.com/cdn-cgi/imagedelivery/jAjT7jptlF-zvdt3zw0WYA/Фундаментальный_анализ_пример_2/public)

## [Why should a trader analyze the financial market?](#goal-of-fundamental-analysis)

It is important to study and apply fundamental analysis of the stock market if:

1. You feel that you understand nothing at all about the tokenomics of the project you want to invest in.
2. You're scared or worried about price fluctuations and want to understand the basics. 
3. You're diversifying your assets, and you're looking at buying assets over the medium to long term. 

>It is important to note that the analysis investment is mainly used by medium and long-term investors. In short-term fundamental trading, there is no point and no time to perform a full-fledged in-depth FA. 

When you know what a crypto project is, what the underlying idea is, and what team is working on it you may speculate about how big this project will grow. However, in our article ["What's wrong with technical analysis"](https://resonanceholding.com/blog/trading/low-technical-analysis-efficiency) we told you that "speculating" and "guessing" won't do any good. The difference between fundamental and technical analysis is that unlike technical analysis, which is focused on historical data and volumes, the FA is focused rather on qualitative factors. That said, neither method is a grail that will tell you 100% for sure which asset will bring you profit.\
\
The FA is the tip of the iceberg, and your task is to delve deep into the ocean. The decision to buy an asset should be made on the basis of objective facts only, and objective factors are supply and demand, which can be observed on the Resonance [cluster chart](https://resonanceholding.com/rtt). Study them and thereafter make a decision whether to buy/sell an asset in the future.

## [Conclusion](#conclusion)

Comparing fundamental vs technical analysis, the first one focuses on fairly qualitative factors and is more suitable for long-term investors than for intraday traders.\
\
The real interest of the buyer in the asset can be seen only on the cluster chart and with the help of tools on the Resonance platform.
You can learn more about fundamental investing and company valuation techniques in the "Fundamental Analysis" lesson in our [online university](https://resonanceholding.com/edu). Go for it!

In the article, we consider what indicators of fundamental analysis can be used in the cryptocurrency market to determine whether to invest in an asset or not.

Fundamental analysis in trading: what it is and how to apply it

You can go to the platform or read something interesting

Name

Account | Resonance

Authorization | Resonance

Author's articles and fresh news for traders and investors about trading in financial markets. Features and training in trading. Tips from trusted authors and analysis of trading situations.

Trading blog | Resonance

Articles that reveal the possibilities of trading tools on the Resonance platform. Learn more about search engines for intraday trading, as well as a medium and long-term investment. Learn to analyze the market objectively and take your trading to the next level.

Learn everything about trading in our expert articles. We cover all aspects of trading, from basic mechanics to advanced techniques. The blog will be a great addition to the training course and the posts feed.

Articles about trading: everything you need to know about trading | Resonance

Resonance cluster chart. Analyze supply and demand volumes

Resonance chart

The Cookie Policy governs your visit to the Resonance website and explains how we collect, protect and disclose information obtained from your usage of our platform.

Cookies Policy | Resonance

A tool to analyze price volatility, aggregated delta by volume, best coins for grid bots, most active coins in the market, liquid ticker comparison, standard deviation of price and volume, cost of price movement, heat map by limit orders, market capitalization, and Bitcoin dominance. As well as back-tests of coins for grid algorithms.

Dashboard | Resonance

The trader's dictionary will help you understand the slang that is used in training traders, as well as for analyzing the financial market. The dictionary contains all the terms that will help you better adapt in the field of trading.

Trader's dictionary | Resonance

Online course about trading and financial markets for beginners and experienced traders. Interactive lessons. Learn more about trader's psychology

Online education trading | Resonance

My course | Resonance

Answers to the most popular questions about the financial market, trading, arbitrage, assets, anomalies, technical analysis, futures and other questions and answers about the financial market.

Questions and answers about the financial market | Resonance

Posts by trusted authors and professional traders about financial market analysis, trading, training and other trading secrets

Posts feed | Resonance

Market Delta is a tool for analyzing the flow of capital between index groups. Groups include bitcoin, stablecoins, alcoins, fiat currencies and more.

Market Delta | Resonance

Market Stat is a tool for analyzing the flow of capital between index groups. Groups include bitcoin, stablecoins, altcoins, fiat currencies and more.

Market Stat | Resonance

Page not found | Resonance

Learn objective market analysis with experienced mentors. By passing the course with one of Resonance's trusted authors, you can dive even deeper into the learning material.

Mentorship | Resonance

Paid features from Resonance open up additional opportunities for analyzing financial markets. Choose a plan that suits your trading strategy and analyze objective market information.

Plans | Resonance

Resonance privacy policy governs your visit to the website and explains how we collect, protect and disclose information obtained from your usage of our platform.

Privacy Policy | Resonance

Analysis of supply and demand volumes using a cluster chart. You will get access to aggregated data on 10,000 trading pairs from 15 largest exchanges

RТТ Chart | Resonance

A tool for finding anomalies on assets. Speeds up the search for profitable assets by up to 16 times. Pump finder. Allows you to sort assets by bitcoin price changes, market trading volumes, market capitalization.

Screener | Resonance

Cluster chart, interactive education and a community of professional traders on the web service for traders and investors – Resonance.

Resonance | Analysis of financial markets

The Resonance Terms of Service set out on this page govern any and all usage of our website by you.

Terms of Service| Resonance

Hello!

Hey there, trader!

Choose the language you want us to communicate with you.
You can change it in your account settings

Payment instructions

Leave your contact information so that the mentor can contact you. After filling out the form, click "Pay" again

Leave your contact information so that the mentor can contact you.

We will contact you within 24 hours after receiving your data. If you have any questions, contact as at

Hey there! My name is Aires, I am an AI of Resonance. Watch the video from the founder of the platform to use it to its fullest. And see you soon!

Closing the cluster chart will close the note. Changes will not be saved. Are you sure you want to close the note?

Do you want to close the note? Changes will not be saved

Notes

Title

Notifications

Pairs tree

The third negative test result indicates that the material was not learned. 

Use our Mentorship service to make sure you understand the material.

My course

{title} | My course | Resonance

Not found

Customize the appearance and grouping of data in the cluster chart

Chart settings

Take interactive lessons to learn how to analyze volumes

Course

You can start onboarding again by activating it in your account at any time.

Here you can learn about all the tool settings and parameters. Helps are available in each window

Helps

Turn the common axis mode on or off to see the change of each line on the chart

Axis

Change the data type, timeframe and filter the asset table

Chart customization

Tool for searching and analyzing delta by volume and quantity, evaluation of balances of indexes and individual tickers

Market Delta

Analyze all ticker groups together or individually by switching tabs

Ticker groups

Click on the name of a ticker in the table and add its indicators to the general chart

Selecting tickers

Analyze the total volume of transactions relative to the average balance (blue line)

Graph of the ratio of volume to average balance

Click the button and study the balance per individual assets in the Market Delta tool

Go to Market Delta

Select data type, timeframe and range displayed on the chart

Block of chart settings

Shows what prevails on the market: buying or selling

The delta histogram and the average balance chart

Compare volumes of all index groups represented on the platform

Volume comparison chart

Hover your mouse over the graph and get a numeric indication of the selected volume on the chart

Volume index

Switch the graph type to evaluate all types of data: volume, delta by volume, and number of trades and their delta

Chart type

A tool for fast evaluation of large amounts of data. Speeds up asset search by up to 16 times

Screener

Select tickers and exchanges and sort them by different parameters

Filtering and sorting

Change the number of graphs on the screen. Grid selection speeds up the asset selection process

Grid

Click Search and download graphs using the filters you choose

Search

Hi, I'm Ayres, Resonance's artificial intelligence. Now I'll briefly explain to you how our platform works.


Let's start Market Delta?

Hi, I'm Ayres, Resonance's artificial intelligence. Now I'll briefly explain to you how our platform works.


Let's start Market Stat?

Hi, I'm Ayres, Resonance's artificial intelligence. Now I'll briefly explain to you how our platform works.


Let's start RTT?

Hi, I'm Ayres, Resonance's artificial intelligence. Now I'll briefly explain to you how our platform works.


Let's start Screener?

Hover your cursor over the cluster or histogram and get information about volumes

Tooltip

Save your analytical ideas in notes. Manage your notes in your personal account

Choose the windows and tools that will be displayed on the screen

Window settings

In the pairs tree, select an exchange, ticker and pair to open them on the cluster chart

Nobody is gonna hit as hard as life, but it ain’t how hard you can hit. It’s how hard you can get hit and keep moving forward. It’s how much you can take, and keep moving forward. That’s how winning is done.

Every day in this classroom, we learn things far more important than anything written in the textbooks. I teach you, and you teach me, and together we learn to love learning

Wow, you have all money of the world! Congratulations!