What are the key elements of fundamental analysis in crypto trading?

In the world of cryptocurrencies, economic factors play a crucial role in determining the viability and future success of a project. Let's delve into the key economic aspects to consider:

- Tokenomics: it is essentially the economy of the token. How is the supply managed? Is there a cap on the total number of tokens, or is it inflationary? Understand the token distribution strategy. Who owns them and how are they distributed among developers, the company, and the public? The distribution influences the token's value and its potential for manipulation. Evaluate the mechanisms of inflation or deflation. Does the token have a burning mechanism, or is there a staking system that could affect the supply? $BTC

- Funding and financial health: Investigate how the project is funded. Does it have strong backing from reputable investors or organizations? Initial funding sources can indicate the project's credibility and investor confidence in its potential. Examine the project's revenue sources. How does the project plan to generate revenue and what is its financial sustainability model? A project without a clear revenue stream may struggle in the long term.

Analyzing these economic factors will give you an idea of the long-term viability of the token, helping you decide if it is a smart investment.