The journey of a crypto investor
The job of an investor is to look for pearls and hope his treasure will increase in value in the future. Actually, in the crypto world, we have 811 currencies and 175 assets listed on coinmarketcap.
It is mission impossible to follow all those projects and know where to find the most valuable investment. Many coins will fail and disappear, so it's good to make some research and take rational decisions.
Great opportunities exist out there, the first step is to believe and do the research yourself. When you do it on your own, you can make wise decisions and be happy to see your investment grow.
Where to start the investigation?
Your journey starts with your new best friend, the website coinmarketcap. As I mentioned it already this is where you can check the charts and price of any cryptocurrency on the market.
As soon as you go on the website, you should see a screen like this.
The site classifies the cryptocurrency by market cap, you need to find crypto names that inspire you, this process is mostly with your gut-feeling. You can see it like when you try to decide on which movie to go see tonight.
Do you think you will invest on a coin called Clowncoin or Goofycoin? In the real world, we remember companies by name and logo, the same is true with cryptocurrency.
For each name, you find appealing, open a new tab in your browser. You are going to check it later to investigate deeper on other parameters. I suggest that you start with a number between 5 to 10 cryptocurrencies.
Let’s go deeper into the analysis, now you need to look each chart of the coins you have previously identified. You need to take a quick look to see if the graphics tell you something about the health of the coin.
What I mean by that is you can see if the coin is growing slowly or have risen rapidly and then went to the center the earth. All events have a correlation with the charts, a quick spot check can tell you something, and then, you need to use your intuition.
Now you realize that you want more information, look at the social tab of the coin you have selected. Twitter is the best choice and is very popular in the crypto world, it is very convenient to get an update by a simple Tweet.
You can look the recent Tweets about your coin and what the progress:
- Check for updates.
- Look for the updates on the latest development.
- See if the followers interact with the Tweets and comment on it.
The next step is to locate the roadmap and see what the team want to accomplish in the current year or the next one. You need to see if the developers are working hard to improve the project and scale the ecosystem. Without an active team, the coin can die rapidly and lose its value.
The essential of a roadmap is like a personal agenda, you need to know where you are and where you want to go. Take the proper time to read it, normally, you can find it on their website or you can make a search on google.
This is an important one, a token needs to have a community behind the cryptocurrency. You need to look on google or forums how the people are talking about the coin.
You need to know what the community wants to do with the token:
- Can people use it in real life?
- Is the community contributing to the success of the platform?
Other important factors for your scrutiny
Many other areas you need to dive into and look for what you can discover under the hood. These are the options available for you to check:
- The history of the coin: You need to understand the history of the coin, the challenges, and the milestones.
- Read the whitepaper: To understand the vision, have details on the technical details of the coin. Also, to get a better understanding of what the coin do in the ecosystem.
- Use cases: The coin can be used in a real situation and have a real market for it. Sometimes, you can see this information directly on the whitepaper or on the website.
- Team: You need to look at the experience of the team. Without the proper skills, this can determine the success or failure in the long run. The human factor is one of the most important from my point of view.
The importance of researching
When you take the time to look where you want to invest your money, you know where you've put it. You will have the confidence and will make wiser decisions in your future.
Many people buy into the hype without doing analysis and do not know what the token really do. This is like gambling when you hope to make a good return on your investment, you can win or lose your shirt!
Do not miss these important steps before adding your valuable coins in your wallet. Investing is not gambling when you do the proper analysis and know on what you are investing in, you can make a decent return in the long term.
Now you need to transform yourself into the next Sherlock Holmes and find the next valuable coin!
Are you doing any investigation before investing in a new token?