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 100% of the market, in fact 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's better to buy Bitcoin and Ethereum first because the two 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 do a research process in the form of searching first," he said.
The research process in question is to find out in advance what crypto assets we will buy through the website. Not only that, the research process in question also means seeking information about the ins and outs of crypto investment and blockchain technology.
Then the screening process. This can be done by filtering the crypto assets to be purchased from several selected crypto assets in the research process. Or you can do a screening of their respective 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 indeed those who want to invest in crypto are more suitable who have an aggressive or moderate aggressive risk profile," added Oscar.
After conducting a mini research and screening process, investors can perform technical and fundamental crypto analysis. 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 and technological information behind it.
Oscar explained that the 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 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
Second, 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 three trading volumes show 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 marked 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 crypto asset's official website 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.
Oscar also advised investors to look at the community. Investors can follow the innovations that the token will create from their activity on the project's social media as well as the events they held some time ago and in the future. Don't forget to follow news about a digital asset project, whether the tone tends to be positive or negative.