Beyond Belief: The Role of Faith and Fundamental Analysis in Crypto Investment Strategies
What on earth could the role of faith have in crypto currency investing? Well even that term, crypto currency investing is a bit loaded. Nonetheless, anyone involved in crypto and looking to increase their gains whether it be by some investment strategy or trading, will want to come to the table with a bit of faith.
What is this faith buisness all about… No I’m not talking about faith in some religious sense. What I’m discussing here is the notion that there is something wrong with the mainstream monetary system, high fees, inflation, lack of access and lack or trust are just a few of these problems. But Crypto strongly answers these problems. We will save the topic of how crypto addresses decentralization, privacy, inflation resistance for another time. But clearly crypto has the ability to do some monetary processes better and fairer than what most of the world is currently using. The faith aspect comes into play in the belief that the common monetary system can and will change for the better.
Another cause for faith in crypto is the fact that blockchain technology is being adopted all over the world by major companies. I will never forget back in 2018 while being on trip to South Korea hearing about various companies that were starting to look into and utilizing this peculiar relatively new technology called blockchain. Now, recognizable Korean companies such as Samsung and Hyundai are exploring numerous uses of blockchain. But back then, I just took note of it not seeing the connection between blockchain and the revolution that was quietly taking place.
A short time later, I started to realize that crypto and the blockchain technology that undergirds it were a second chance at a missed opportunity. You see, I was around in Silicon Valley as a headhunter during the 90s, but I didn’t invest in anything. Oh, if I had just thrown a few bucks into Apple and Amazon! I didn’t see the revolution of communication with the internet and web services that would subsequently take place. This time is different, though! I see the revolution taking place in the financial markets of the world and all the potential for crypto to turn things on their head! Yes, it takes a bit of faith, but I believe that crypto is an immense opportunity because it is revolutionizing the financial world and beyond.
Now, it is very likely that if you are reading this, you hold some sort of conviction about crypto. Whether you think it’s a short-term opportunity or something to invest in for the long run, you have some faith in what is happening. Faith, in the context of fundamental analysis and crypto, can be defined as a strong belief or trust in the potential of a particular cryptocurrency or blockchain project. If you were around for the dot-com era, you know that there were thousands of websites that failed. But some are still chugging away today, like eBay, PayPal, and Google! And this is where fundamental analysis comes in. Fundamental analysis pulls the curtain back and shows what a company or project is beyond its ticker symbol price.
Fundamental analysis works a bit differently with crypto then traditional stocks, but one still looks at the crypto project beyond a TradingView chart. So, once you’ve decided to take a deeper dive into a certain project, it is time to learn about the project’s gears and whistles. And even if you are someone who would rather solely look at charts for your investing decisions, knowing a bit about a project could influence the timeframe you decide to trade according to the charts. For example, the charts may be telling you that a dump is imminent. But you know that OpenAI is going to release a new version of ChatGPT that will send the world into a flurry. So, rather than trade AGIX (AGIX reaps rewards from positive news cycles regarding artificial intelligence and I don’t thing that narrative is done) on the four-hour, you switch to the daily because you understand the connection between ChatGPT and artificial intelligence coins. The AI coins will likely run hard on the heels of the ChatGPT announcement. So, the narrative will drive the price. Fundamental analysis reveals the potential narratives a coin might benefit from, thus affecting decisions made even when charting.
One thing to watch out for when it comes to faith and crypto is bias. You don’t want to overlook potential risks or weaknesses. One needs to remain objective even in the midst of finding a project that warrants a little nibble or even a deep dive. On the pro side of things, faith can also provide investors with the confidence needed to make bold investment decisions. If an investor believes strongly in the potential of a particular cryptocurrency or blockchain project, they may be more willing to take on risk and make larger investments.
Look, faith and fundamentals converge here: Faith in a particular cryptocurrency or blockchain project can lead to a strong sense of community among investors and supporters. This community can provide valuable support and resources to help the project succeed, such as networking opportunities, technical expertise, and financial resources. While faith may produce such factors, fundamentals includes learning about the preceding factors in conjunction with the development of the project.
Once you’ve looked at the fundamentals of a coin or project, then you can determine how and if you want to trade or invest in it. This is where I’m at. I want to know the potential a coin has to run in a bull or bear market. So I’m looking at both the technicals and fundamentals, with an ear to the ground for potential narratives. I’ve learned that when it comes to investing or trading, having faith in a particular cryptocurrency or blockchain project can be a powerful motivator. However, it’s important to balance this faith with objective fundamental analysis to avoid getting caught up in hype or misinformation as much as possible. So, whether you’re a true believer in the power of crypto or a bit of a skeptic of the blockchain boom, remember that a sound understanding of the fundamentals combined with a bit of faith can help you make informed decisions and keep your investments on solid ground. After all, as the famous economist John Maynard Keynes once said, “The market can stay irrational longer than you can stay solvent.”
So what is the next step in your fundamental analysis journey??? If you are not sure where to go, this article could be fundamental to you: https://medium.com/@tokentrekker/maximizing-your-crypto-gains-understanding-the-flow-of-funds-between-ethereum-and-bitcoin-a24bfbcdadb1
My blah blah blah disclaimer: I am not a financial advisor and cannot provide investment advice. Cryptocurrencies and investing in general involve risk, and individuals should conduct their own research and consider their personal financial situation before making any investment decisions.
I hope this article was helpful to you. Please let me know below how you use fundamental analysis to invest in crypto.
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