A Fundamental Framework for Identifying Profitable Cryptocurrencies

Abstract

Major academic research related to cryptocurrencies has been developed by technologists who mainly focus on feasibility and security. Research in the area of economics and finance has provided limited insight in guiding investors to profit from cryptocurrencies, however, this article proposes a framework that depicts how rational investing can be achieved with the help of historical information published by cryptocurrency projects. Trading strategies based on fundamentals can generate economically significant gains relative to a buy-and-hold position.