AF (Fundamental Analysis): The tool that traders forget

When you want to know if an asset is really cheap or expensive, Fundamental Analysis (AF) is your best ally. But unlike what many think, it goes well beyond just looking at numbers.

What is Fundamental Analysis really?

The AF is a methodology to investigate the real value of an asset or project. Instead of relying solely on historical prices, it dives deep into qualitative and quantitative factors: management quality, company reputation, industry dynamics, market capitalization, and general and specific economic scenarios.

The big differential? Fundamental Analysis recognizes that the future of an asset depends on much more than its past performance. It evaluates both microeconomic conditions (health of the company/project) and macroeconomic (global trends) that can impact the market.

The details that matter in AF

When you perform a proper fundamental analysis, you are seeking to answer: is this asset priced correctly? Is it overvalued? Undervalued?

To this end, the AF examines aspects that do not appear obviously:

• Leadership Quality: managers' history, past decisions, credibility
• Market potential: is there room for growth? Does the product/service have real demand?
• External factors: how regulatory changes, competition, and economic trends affect the project

The ultimate goal is to arrive at a calculated fair price, compare it with the current market price, and make an informed decision.

Fundamental Analysis in cryptocurrencies

Although born to evaluate stocks, Fundamental Analysis is fully applicable to cryptocurrencies and other digital assets. For a coin or token, you can examine: real adoption, code quality, community health, tokenomics, project roadmap.

AF vs TA: which one to choose?

Here is the important point: it is not about choosing one or the other, it is about using both together.

Fundamental Analysis looks at the big picture — all the factors that influence the real value of the asset. It answers: “Is it worth investing in this?”

Technical Analysis, on the other hand, is laser-focused: it examines charts, volume, and historical price patterns. It answers: “What is the best time to enter or exit?”

Experienced traders combine the two. Use FA to identify assets with real long-term potential. Use TA to optimize entry and exit timing. Fundamental Analysis provides the direction; Technical Analysis provides the pace.

Ignoring FA is like investing in the dark. Ignoring TA is like having a map but not knowing when to start the journey. True competence lies in balancing both approaches in a contextualized manner.