How to Research Cryptocurrency The 7-point Strategy

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A coin worth investing in should solve a problem and solving that problem should be the goal of the coin’s creators, not making money. There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. Our experts have done the research to pick out the select few top crypto exchanges today. You might not understand all the content, but write down any questions you have as you go along — these will help you as you dig more. If a crypto doesn’t have a whitepaper, that’s a big red flag.

These screeners can’t be modified but you can always copy them by the click of a button and then edit them to be more suitable for your purposes. However, sometimes it might be tricky to know where to start. Being familiar with stock research I thought I can do the same things with cryptos.

Where and how to find new crypto-fruits in 2022

The coin was developed as a “joke,” according to its founders. But it attracted the attention of some influential figures in the crypto community, and, basking in the new attention, SHIB quickly gained market-wide acceptance. The coin is listed on major crypto exchanges such as Coinbase, Binance, and KuCoin. SHIB is considered a rival for the Dogecoin mining algorithm.

Learning about the community for a given cryptocurrency can help you gauge whether a project will succeed, or if it is pure hype and speculation. Cryptocurrencies are typically created by a team of founders and software developers that help create the solution to a problem. To better understand how a project could perform, you should research the professional experience of the team running the project. I analyze crypto trends and turn them into easy to read and understandable research articles for thousands of crypto investors. Established partners are vital for any crypto project because they help the team to tap into additional resources, get publicity, and learn from their experiences.

Which Is the Best Cryptocurrency to Invest in?

It’s important to understand the tokenomics of a project before investing, as it can give you some insight into the potential value of the token. When considering a project, it’s also important to consider the potential market and whether there is a need for the solution the project is offering. A good white paper will be well written and easy to understand without being too technical.

  • Doing so will help you to determine whether a project is the right investment opportunity for you and if it’s something you can invest in long-term.
  • Unfortunately, Youtube has been poisoned with affiliate marketers.
  • In some cases, the blockchain itself will make a scam coin difficult to circulate in legitimate ways because wide circulation in legitimate circles could expose the coin more quickly.
  • Privacy coins can be illegal where you live, you might not be able to declare your gains (or losses), but that’s another discussion.

If you find a cryptocurrency with no volume, you should consider waiting to see whether it will develop any. If other investors aren’t trading a new crypto coin in large amounts, it might indicate that it isn’t yet worth buying or is a scam. You can also invest indirectly in cryptocurrencies through derivatives that trade on mainstream exchanges. The Chicago Mercantile Exchange (CME) crypto futures, including Bitcoin and ether futures, are a popular option with investors looking for indirect exposure to crypto.

Method 2: Analyzing upcoming events

I use Twitter to better understand the sentiment surrounding certain cryptocurrencies as well as the market in total. Since it is open source, it is possible for other people to use the majority of the code, make a few changes and then launch their own separate currency. However, they all share the same moniker — every coin issued after Bitcoin is considered to be an altcoin. We calculate our valuations based on the total circulating supply of an asset multiplied by the currency reference price.

There’re tons more useful tools and doing research also includes looking at the project site, including reading the complete whitepaper. These tools are just meant to enhance the analysis and using them in combination which each other makes them more powerful. Naturally, you have a higher chance of picking the right investment if five sites give you a buy impression rather than just one giving that.

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