How to research potentially great cryptocurrencies?
Almost everyone who has heard about cryptocurrency and want good returns on their investments, wants to jump to the crypto trading ship. But how does one identify a good crypto project to invest? There are currently over 6500 cryptocurrencies in the market so it becomes very important to identify potentially good cryptos not just to make profits but also to save your valuable investment.
Here are some of the key aspects that one should look into to identify a good crypto:
- Implementation — The very idea of crypto or blockchain is to solve unique problems. So, it becomes very important to see what a crypto is involved in and what kind of problem is it solving for people. For example, Solana (SOL) is a decentralized blockchain built to enable scalable, user-friendly apps for the world. So, it solves the problem of building and launching DApps.
- Investors and Celebrities — Another good point to observe is to look which giants are interested to invest in a crypto project. The projects backed or funded by large firms or Venture Capitalists (VCs) or celebrities are more likely to do better. The reason is that the VCs do a hard research and do not go into projects to lose. Some of the top VCs are Pantera, FBG, Polychain, GBIC and so on. One can find the list of investors on project’s website or platforms like CypherHunter.
- Do your own research (DYIR) — Before investing any amount, quickly do you own research and see what has recently happened or is happening with a cryptocurrency. Basically, follow the news! Many a times, some new upgrades, promotions, etc. can swing the price of a crypto either way in a short period of time.
- Follow genuine people — Although doing your own research is recommended the best, but to get an idea about which cryptos to do research on, one can follow several social media groups on Facebook, Telegram, etc. People show great interest in pouring out their opinions and knowledge. You may not pick up the recommendations in these groups directly, but you would at least know which cryptos to look into based on people’s interests.
- Learn to do technical analysis — At last, there’s nothing better than learning how to do technical analysis of a crypto. Just for example, it has been observed that crypto with small supply always do better (Hint: See prices of $YFI, $MKR, $BTC, etc.). One can always learn several key concepts that affects price swings. There are tons of resources out there provided by some good people.