3 things in the crypt that are not Available in Traditional Markets
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It is difficult for investors accustomed to traditional financial markets to apply their knowledge in the crypto market and make investment decisions.
Basic methods of fundamental analysis, such as PE, PB, EPS, FCF and the like, do not work here. Also, there are no quarterly reports in the crypto industry, which are very important in the stock market.
But there are several important and useful things in the crypt that are missing in traditional markets:
1) Tokenomics
Tokenomics are various characteristics of a cryptocurrency that affect its economy and value: mining rules, token burning mechanisms, various incentives for users, ways to distribute tokens among the community, and so on.
The main feature of tokenomics is that it is programmed into the cryptocurrency code. That is, no one can change it at will, because any changes require the consensus of almost all network participants (unless it is a centralized project).
2) On-chain analytics
The blockchain and the code of most cryptocurrencies are open to everyone. Any user can monitor all transfers on the network, wallet balances, transaction volume, cryptocurrency mechanisms, smart contract data and much more.
This openness allows you to analyze and compare cryptocurrencies in order to make investment decisions or detect vulnerabilities in the code.
3) Round-the-clock operation
Traditional markets have opening hours. For example, the American Stock Exchange is open from 9:30 to 16:00 Eastern time from Monday to Friday. Also, markets are closed during holidays or in critical situations.
Of course, there are derivatives that allow you to trade on the stock market at any time, but most trades take place during the daytime.
The crypto market operates 24 to 7. Investors can react to any market changes around the clock. This is useful for traders and active investors.
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