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Fundamental analysis (FA) is a common method used in the financial field to evaluate the intrinsic value of an asset. Fundamental analysis helps investors predict the future performance of an asset by studying macroeconomic factors, industry conditions, company financials, and management teams. For example, when analyzing a company, the focus is on its revenue, profit, liabilities, market share, and growth potential.

When conducting fundamental analysis, investors usually look at the company's financial statements. These statements include the balance sheet, income statement, and cash flow statement. Through these documents, investors can understand the company's financial health. For example, the balance sheet shows the company's assets, liabilities, and shareholders' equity, helping to assess whether the company has the ability to repay its debts.

Fundamental analysis also involves the study of the macroeconomic environment. This includes examining factors such as economic growth rates, inflation rates, interest rate levels, and government policies. These macroeconomic factors directly affect the company's operating environment. For example, high interest rates may increase the cost of financing for a company, thereby affecting profitability.

Industry analysis is an important part of fundamental analysis. By understanding the competitive situation, market demand, technological changes and regulatory impact of an industry, investors can evaluate a company's competitive advantage. For example, in the technology industry, rapid technological progress and fierce market competition are common characteristics. Investors need to pay attention to the company's investment in technology research and development and market promotion.

The company's management team is also the focus of fundamental analysis. Excellent management teams are usually able to formulate effective strategies and lead the company to gain an advantage in competition. For example, Elon Musk, the founder of Tesla, has led the company to achieve remarkable success in the electric vehicle market with his innovation and leadership.

Unlike technical analysis (TA), fundamental analysis focuses more on long-term investment value. Technical analysis relies on price and trading volume data and attempts to predict price trends through charts and indicators. Fundamental analysis provides investors with a basis for long-term investment decisions by evaluating the intrinsic value of the company.

In the field of blockchain and cryptocurrency, fundamental analysis is also applicable. Although the cryptocurrency market is highly volatile, some core principles can still guide investment decisions. For example, when evaluating blockchain projects, you can examine their white papers, technical teams, community support and application scenarios. For example, Bitcoin is considered "digital gold" by many investors due to its decentralization, scarcity and security.

For emerging blockchain projects, fundamental analysis can also focus on their technological innovation and practical applications. For example, Ethereum introduced smart contracts, which greatly expanded the application scenarios of blockchain. Investors can evaluate its potential value by analyzing its technical implementation, developer community activity and ecosystem construction.

Fundamental analysis also needs to consider the regulatory environment in cryptocurrency investment. The regulatory policies of countries around the world on cryptocurrencies are constantly changing, and these policies will directly affect market conditions. For example, the regulatory attitude of the U.S. Securities and Exchange Commission (SEC) towards cryptocurrencies has an important impact on the confidence of market investors and the development of projects.