My Guide on How to Research Cryptocurrency Coins

in #cryptocurrency4 years ago (edited)

So I'm in the process of typing out a SIMPLE guide or "introduction bible" if you will about cryptocurrency.

Purely for TRUE beginners...kind of like how I was about 3 months ago :( errr I'm still kind of a beginner LOL

I find too many times things are just "assumed" and the person starting from the beginning is left going back and forth to google to look up basic acronyms, etc., etc.

Frankly it's annoying...

So I started typing up a guide from A-Z for beginners.

This is just a snippet of my eventual full guide post (hopefully if I can ever finish it!)

HOW TO RESEARCH CRYPTO COINS (NEW OR OLD)

Picking a coin to invest in is highly subjective...

But knowing where to find the data to research about the coin is key to picking the right coin IMO.

I’m not saying this is the best way to research a coin, but this is how I research coins before I decide to invest in a coin.

Ask yourself these questions and research this data:

  • When was the coin created?
  • What is the coin’s purpose? (Each coin usually has a niche)
  • Does the coin have real world value that you could see yourself or someone else using on a daily/weekly/monthly basis?
  • Who is backing the coin financially or in other ways?
  • What does their development team look like and are they a solid team? (Sometimes hard to judge if you’re a beginner, but google is your friend with this question)
  • Does the coin present itself like a “real world company” or just a hobby coin?
  • Do they have an active social presence? - Facebook, Youtube, Twitter, Reddit, Slack, Telegram, etc.
  • What does their website look like?  (Does their website look professional?  Do the links on the site actually work?, etc., etc.)
  • How much traffic does their website get per month?  (You can use sites like similiarweb.com to research this data)
  • Are they trending on social networks? (This one is huge IMO)
  • Do they have a roadmap?  (Explains their past, present and future goals for the coin/development team)
  • Do they have a “whitepaper”?  (Explains the coins vision and purpose, plus more)  If they do, at least skim it.
  • Did they have an ICO? (Initial Coin Offering - Like an IPO for stocks)
  • Is the coin mineable or is it just a currency or just an asset or all of the above?
  • Did they allow “premining” - Meaning some people could mine the coin before it came out as an ICO.
  • Do they have masternodes? (I'll explain this later)
  • What exchanges does the coin currently trade on?
  • How many exchanges is the coin on?
  • Is there a new exchange or wallet about to pick up this coin?
  • What is the market cap of the coin at the moment?
  • How much trading volume is occurring with the coin at the moment and what did the volume look like in the past?
  • Do they have big plans coming up in the near future?
  • Are their any huge negative reviews online about the coin? (Again this is subjective, but use your brain people.  If it smells rotten...don’t eat it)
  • Go to bitcointalk.org and see how many people are talking about it and what they say - Positive & Negative.

This is my go to "research template" when I find new coins.  

If I really seem to be drawn to a coin and I usually get plugged into these platforms to stay up-to-date:

  • Twitter
  • Reddit
  • Telegram
  • Slack
  • Bitcointalk section
  • Etc.

If you know in the front end what is about to happen you usually catch the train before it leaves the station.

And just like any other industry, it pays off to listen to experts, watch you tube videos and network so you can get connected to “people in the know”.  

Again though...listen to your gut.  Don't be an idiot about follow someone who claims to be an expert, but just seems to constantly give you fluff rather than solid information about a coin.

I’ve learned a lot from random people and found out about coins a few hours in advance before they jumped up in price purely because I paid attention to the noise out on the internet.

__________________________________________

Please guys let me know if you'd like me to add/take away something.

This is just kind of a preview of a bigger article I'm trying to create for the newbie out there getting into crypto.

Any & all feedback is welcome!!!

Regards,

~nX
 

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Its very useful. Thank You so much!