The basic evaluation of cryptocurrencies: evaluation of the true value
Cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have attracted considerable attention in recent years due to their potential for high investment returns. Despite their popularity, many investors are not sure about the true value of cryptocurrencies. A fundamental assessment approach can provide a more objective assessment of the underlying assets of the market.
What is a basic assessment?
The basic evaluation is a method with which the inner value of a wealth value is estimated on the basis of its historical price -performance, trends and other external factors. This approach is in contrast to technical analysis, which focuses on market patterns and trends. In contrast, the basic assessment takes into account various factors that can influence the value of the financial value.
Key factors when evaluating the cryptocurrency
When evaluating the true value of cryptocurrencies, several key factors come into play:
- supply and demand : The ratio of buyers and sellers can indicate whether the market is overbought or oversized.
- Market capitalization : The total value of all outstanding coins shared by their market capitalization can provide insights into the total size of the cryptocurrency ecosystem.
- Price volatility : Cryptocurrencies are known for their high price fluctuations, which can be influenced by external factors such as regulatory changes or global economic events.
- Regulatory environment : Governments and institutions can affect the acceptance and value of cryptocurrencies.
- Network effects : The network effect of a cryptocurrency refers to the ability to attract more users and transactions, which leads to increased demand and the increased price.
- Limited offer : Most cryptocurrencies only have a limited offer, which can contribute to their perceived value.
How to evaluate cryptocurrency
To evaluate the true value of cryptocurrencies, take the following steps into account:
- Calculate market capitalization : Use reliable sources such as CoinmarketCap or Cryptoslate to determine the market capitalization of any cryptocurrency.
- Analyze the historical price performance : Check the price history of cryptocurrency to identify trends and patterns.
- Evaluate the regulatory environment : Research -regulatory updates and changes that can affect the acceptance and value of cryptocurrencies.
- Evaluation of the network effects : Consider the networkffect of a cryptocurrency, including the user base and transaction volume.
- Take into account the offer and demand material : Analyze the offer and demand medium to determine whether the market is overbought or oversized.
case studies:
- Bitcoin (BTC) : In 2017, the price of Bitcoin was considerable volatility due to regulatory changes in China. However, market capitalization rose rapidly when institutional investors entered the market.
- Ethereum (ETH)
: The network effects of Ethereum have increased the demand and value over time despite periods with a high price volatility.
Diploma
The basic assessment is a more differentiated approach than the technical analysis alone. By considering key factors such as supply and demand, market capitalization and regulatory environment, investors can get a better understanding of the actual value of cryptocurrencies. While no single factor guarantees investment success, the basic assessment offers a framework for well -founded decisions on the cryptocurrency market.
recommendations
- Display your portfolio : spread your investments on several cryptocurrencies to minimize the risk.
- Stay informed : Explain yourself on market trends and regulatory updates.
- Look at the risk tolerance : Note your investment risk tolerance before investing in cryptocurrencies.