Thinking of investing in the cryptomarket?
  • Always start your research with a fundamental analysis
  • Remain critical while researching
  • The process of research never ends

When you build a house, the foundation you build on is critical. That is no different for cryptocurrencies. For any self-respecting crypto investor, fundamental analysis is the first step in purchasing cryptocurrencies.

In the world of the financial markets, there are different kinds of analyses, including the technical and fundamental analysis. A technical analysis checks the historic currency graphs, while a fundamental analysis dives deeper into the crypto project and its matching token/coin.

We often see that investors in the crypto market forget the fundamental analysis, and therefore end up with problems because they invest in crypto coins that do not represent fundamental value. We invited Yieldt’s fundamental analyst to explain what fundamental analysis means and why it is important.

‘I analyse, check, evaluate and report’

An investment manager in the crypto market may be expected to perform sound fundamental analyses before adding a new crypto coin to the portfolio. However, this is often not the case. Many friendly competitors of ours buy a fixed basket of cryptocurrencies, at which the choices are not based on fundamental analyses, but only on the sequence of market capitalization of that moment.

Yieldt chooses a professional fundamental approach, in which we first research the cryptocurrencies before adding it to our portfolio. In Yieldt’s specialized investment team, Reginald Fonseca is the fundamental analyst. It is his task to distinguish the good from the bad in the big world of cryptocurrencies, with as a goal to further limit the risk and use the capital efficiently for qualitative cryptocurrencies.

Reginald is passionate about analyses and diving into matters as an analyst. When analysing crypto projects, he checks the following subjects, among others:

  • Use-case
  • What problem the project tries to solve
  • Project weaknesses
  • Competition of other projects

This is how he creates a report with all ins and outs of the crypto project.

He then presents this report to the other team members of the investment team, so all team members are informed with the results. This way, the team members draw conclusions together, which leads to a fundamental score. This score is then compared with the cryptocurrencies that Yieldt already invests in, so Yieldt can easily compare the power of the cryptocurrencies.

Fundamental analysis never stops

If you think the analysis stops after it received a fundamental score, you’re wrong. The fundamental analysis never stops because developments of crypto projects also never stop. Think of the Taproot update that Bitcoin goes through right now, or the developments round the Ethereum 2.0 network. This process of analysis, investigation, and evaluation makes sure the composed portfolio keeps changing.

Thanks to Reginald’s fundamental analysis, cryptocurrency AAVE has been added to Yieldt’s portfolio. When we ask what parts of the fundamental analysis were most important, our fundamental analyst says: ‘The AAVE project is the Swiss pocketknife on the DeFi market and the AAVE platform is used, among others, to:

  • Borrow capita land make it available to borrow
  • Flash loan: Short, quick loans with low interest
  • Treasury: To stimulate new developments of the protocol, capital was made available that one could use
  • Safety module: Insurance against failure of the protocol
  • He then says: ‘At this moment, the project has a total capital of 12 billion dollars. It is also clearly visible that the protocol is supported by many users, with all use-cases the protocol knows.’

    An animated explanation of the AAVE protocol:

    Want to benefit from Reginald’s crypto knowledge?

    With crypto managed investments at Yieldt, you automatically benefit from the knowledge on the area of crypto from fundamental analyst Reginald, among others.

    Yieldt opens the crypto market for investors of all shapes and sizes. In a transparent and honest way, investors do not have to worry about their crypto investments, so they can concentrate on the things that matter in life. With a risk averse strategy, we make the risky crypto market a valuable addition for everyone’s capital.