Beginner Investors Hurry Up! These Are Tips For Choosing Crypto Assets Through Fundamental Analysis

Illustration. (Photo: Unsplash)

JAKARTA - The rise and fall of crypto assets is a natural thing to happen and it happens so fast. Although the price of crypto assets is determined by 100 percent of the market, investors (especially beginners) can choose which crypto assets to buy through fundamental analysis.

Indodax CEO Oscar Darmawan advises beginners to do simple research first. This process aims to understand in advance the investor's risk profile and obtain information about the crypto asset to be purchased.

“For novice investors, it is better to buy Bitcoin and Ethereum first because both cryptocurrencies are cryptocurrencies with the highest market capitalization. However, if you want to buy crypto other than the two cryptocurrencies, investors are expected to be able to carry out a research process in the form of searching first," he said in a written statement,

The research process in question is to find out in advance what crypto assets we will buy through the website. Not only that, but the research process in question also means finding information about the ins and outs of crypto investment and the blockchain technology that can be done on the online education channel from Indodax, namely Indodax Academy.

Then the screening process. The screening process is divided into two. The first is to filter the crypto assets to be purchased from several crypto assets selected in the research process. The second screening process is the screening of each of our risk profiles.

“What must be understood, investors who enter crypto are not investors with a conservative risk profile because as we know the ups and downs of crypto are very fast. So, those who want to invest in crypto are more suitable who have an aggressive or moderate aggressive risk profile,” added Oscar.

Fundamental Analysis

After conducting a mini-research and screening process, investors can perform technical and fundamental cryptoanalysis. Technical analysis is an analytical process by looking at and analyzing the historical movement of the crypto price in the past. Meanwhile, fundamental analysis is looking at all the financial information and technology behind it.

“Fundamental analysis of stocks and cryptocurrencies is different. In the crypto-asset market, there are several factors that can be used as fundamental analysis of a crypto asset. The first factor is the market capitalization in the form of the value or price of crypto assets which is calculated from the total number of assets in circulation. Market capitalization is certainly an important indicator because it shows market interest and the growth of crypto itself,” he explained.

The second is the availability of an asset that can be measured from its supply. Supply relates to supply and demand. If the demand is large but the supply is small due to the token burn process, then the price will be higher so that buying interest in the price of the crypto asset also increases.

The third is the trading volume which shows how much crypto assets were sold or bought over a 24-hour period. Fourth, the people behind the project. The fifth is the potential roadblocks and the security of the asset, the roadmap of the crypto asset that explains what has been created and will be done.

"And finally, by looking at the reputation of the crypto, which is indicated by whether the crypto is listed on many exchanges or not and seeing the use of the token," explained Oscar. To view information about crypto assets, investors can visit the official website of the crypto asset or view the whitepaper by accessing CoinMarketCap or CoinGecko. The whitepaper itself is a report which contains the background, the founder of the crypto project, what the market is like, the purpose of making crypto, what the future plans will be, the use of the funds, and the quantity of the crypto.

Third, investors can see their community. Investors can follow the innovations that the token will create from their activity in the social media project and the events they will be holding some time ago and sometime in the future. Don't forget the last one is news about a digital asset project, whether the tone tends to be positive or negative.

For additional information, Indodax is the largest and most trusted startup buying and selling crypto assets in Indonesia that trades more than 180 crypto assets. Now, Indodax serves more than 5 million members.

Deposits can start at a price of IDR 10,000. Indodax has an offline counter that can be used by members for consultations located in the Sudirman office center, South Jakarta, and Sunset Road in Bali.