In the classical stock market, fundamental analysis refers to a set of methods that investors use to determine the "intrinsic value" of a company. This value might not align with the "market value," which is the price set by the market.

However, fundamental analysis can also be applied to cryptocurrencies, but there are important nuances to consider for it to be effective. The metrics used to evaluate intrinsic value differ. Some are easier to collect and interpret, while others are more complex. Many online metrics provided by blockchain, such as transaction counters, active addresses, hash rate difficulty, and others, can be used to assess the state and prospects of a cryptocurrency.

Fundamental analysis in cryptocurrencies allows one to evaluate how effectively the team is working on the project. It’s important to learn about its leaders and their previous projects, review the "white paper" and roadmap. This requires specific skills but enables an assessment of the technology behind the cryptocurrency, the realism of its goals, and a projection of its state in one or two years, albeit with gradually decreasing forecast accuracy.

Although cryptocurrency fundamental analysis is based on the same methods used for traditional markets, it requires different skills and knowledge. Mastering it is challenging but can become the best tool for generating profits since it proves more effective than technical analysis when applied to long-term periods.