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What are the fundamental analysis ratios used in cryptocurrency investing?

avatarJenny Mae SaysonDec 18, 2021 · 3 years ago1 answers

Can you explain the fundamental analysis ratios commonly used in cryptocurrency investing? I'm interested in understanding how these ratios can help evaluate the potential of different cryptocurrencies.

What are the fundamental analysis ratios used in cryptocurrency investing?

1 answers

  • avatarDec 18, 2021 · 3 years ago
    When it comes to fundamental analysis ratios in cryptocurrency investing, there are a few that are commonly used. One of these is the price-to-earnings (P/E) ratio, which compares the price of a cryptocurrency to its earnings. This ratio can give you an idea of how expensive or cheap a cryptocurrency is relative to its earnings potential. Another important ratio is the price-to-sales (P/S) ratio, which compares the price of a cryptocurrency to its revenue. This ratio can help you assess the growth potential of a cryptocurrency. Additionally, the debt-to-equity ratio is used to evaluate the financial health of a cryptocurrency. These ratios, along with other fundamental analysis tools, can provide valuable insights for cryptocurrency investors.