Fundamental Analysis

Fundamental analysis, also known by its initials FA, is a method used to calculate the real value of a financial asset. This type of analysis allows for determining whether the asset is undervalued and has the potential to continue growing in price, or if it is rather overvalued and may depreciate sooner or later. Its name derives from the study of the fundamentals of the asset. In the case of bitcoin, for example, it pertains to its monetary policy: its scarcity, the rate of issuance, its adoption and use by people.

The objective of this type of analysis is to determine whether the investment being planned is truly valuable or if there are other market opportunities with greater growth potential. In other words, this information can be used to strategically enter or exit positions, generating greater profits or avoiding long-term losses.