Is financial analysis a good skill for a cryptocurrency investor?

When it comes to investing in cryptocurrencies, one question that often arises is whether financial analysis is a valuable skill to possess. Given the volatile nature of this emerging asset class, is a deep understanding of financial metrics and accounting principles really necessary? Or is it more about following market trends, technical analysis, and the latest news? Certainly, traditional financial analysis techniques, such as analyzing income statements, balance sheets, and cash flow statements, provide valuable insights into the underlying financial health of companies. However, many cryptocurrencies and their projects do not have the same traditional corporate structures. This begs the question: How relevant is financial analysis in the context of crypto investing? On the other hand, some argue that understanding financial principles can help investors make more informed decisions, even in the crypto space. After all, the fundamental principles of investing still apply – one should always aim to buy low and sell high. So, is financial analysis a good skill for a cryptocurrency investor? Or are there other factors that are more important to consider? Let's delve deeper into this question and explore the various perspectives.