When conducting fundamental analysis on a coin, you have less metrics to analyze compared to when performing analysis on traditional stocks.
In crypto, the coins community is pivotal to its success.
Determining the strength of a community is a measure of its Social Media channels, and its community discussion forums.
For Social Media, check out:
1. Find the coins subreddit and check for these two metrics:
- How many members are in the subreddit
- What is the general tone of the subreddit? Negatitve or Positive?
- Is there a strong community of long term holders?
2. Look at the coins Twitter and look for the same metrics.
- How many followers do they have?
- Search the name of your coin and look at top posts, again, look for the general tone, positive or negative.
- Look at past tweets from the account, how is news received by the community?
3. Find the coin you want to research on CoinMarketCap.
4. Go to it's website, and use the links on the left hand side to find where the community lives and breathes.
It's most likely on either Telegram, Discord, or Slack.
See how active these chat rooms are.
Do people know each other?
If members of the community are familiar with each other thats a good sign that they've stuck around for a while.
Are people complaining a lot?
People get antsy fast when devs don't release new updates, if people are complaining, it might be a sign to stay away from the coin.
Hope this helps!
Speaking of discord, feel free to hop into our general cryptocurrency server if you have any more questions about crypto!