Guide to hand-pick your crypto
When you decide to try your hands on cryptocurrency, you should do a bit of research. Every investor’s goal is to get good value for his investments. No one should enter any market without having the knowledge of the crux of that market.
In this article we’ll talk about few points you can consider before getting into highly volatile markets like cryptocurrency.
- First thing you should focus on the community and the individuals backing the cryptocurrency you’ve chosen. Strong community and loyal followers are the key factors for any crypto project it shows their interest and belief in the project. You can go through their social media spectrum like Youtube, Telegram Groups, Reddit etc. And see how the developers and individuals behind the project are responding to their community. You can go to different cryptocurrency forums and can learn and discuss new coins and what the hype is about in the market.
- Go through the cryptocurrency’s website, and check the authenticity of their team, ambitions, strength. Check if someone had audited their project, analyze the white paper, analyze the roadmap and see if their goals are realistic and good enough to counter real-life problems.
- Do extensive research on team members of that cryptocurrency. Go through their social media and analyze if they have put the real information about themselves. Find their work on platforms like Github, LinkedIn, etc. Analyze if you really trust their expertise? Are they ambitious? Do they have any proven track record of success? etc. The main reason to do this is that the team has the main power to drive that crypto project to success or failure.
- Another important aspect is the underlying technology used in cryptocurrency. Understand the technology, what makes this technology different from another technology present in the market. Let's take Ethereum’s technology, It’s Smart contracts are a form of technology that facilitates the exchange of anything of value. Ethereum’s technology is designed to make it easy for developers to integrate the blockchain with their own applications. Ethereum Virtual Machine technology (EVM) makes it easier for developers to create applications on a bigger scale. Because of its innovation, it becomes one of the most popular cryptocurrencies in today’s time.
- Check the White Paper thoroughly as it outlines the purpose of the crypto project. It’ll help you understand the fundamentals of the project. Analyze the draft of the white paper, whether it’s professionally drafted or not, Is it credible enough, etc. Some technical jargon will put you off but do read the entire draft as it’ll help you analyze their future plans as well.
- Understanding the pricing history of cryptocurrency. Is it too volatile? How it performs in correlation with the general market? What is their All-time high? Always wait until the crypto takes a dip. You can check the graphs about pricing on Coinmarketcap, Coingecko, etc.
Before you decide which cryptocurrency to invest in, simply run through each of these points and make sure your potential investment ticks the boxes for each.
And whilst there are no definite ‘safe bets‘ in the crypto world, this guide will really help you pick a strong investment with solid fundamentals.