Crypto Investing in a bear market
We are in the midst of a massive Crypto crash. So what should a new investor do?
We are in the midst of a massive Crypto crash. Here’s how much the top cryptos are down as compared to their All-Time Highs.
- Bitcoin is down 63%
- Ether is down 72%
- BNB is down 65%
- Cardano is down 85%
- Solana is down 89%
- Dogecoin is down 92%
- Polkadot is down 87%
ROHAS method of picking good crypto projects
I focus on pre-listed strong projects with solid prospects and I use the ROHAS method to evaluate new crypto projects.
In the ROHAS method, you need to grade a crypto project on 5 parameters:
- Revenue
- Organization
- History
- Algorithm
- Social
1. Revenue
Understand and analyze how the project generates revenues for the ecosystem and what is the global economic impact of the project? This information can be obtained from:
- the official website of the project
- the White / Light / Yellow / Beige Paper of the project
Based on your research, grade the revenue model of the project on a scale of 1 to 5.
2. Organization
The organization / team (founders, dev, business) must be highly-skilled and have strong prior experience, strong credibility, and positive social media status.
This information can be obtained from the LinkedIn profiles of the team members. Be wary of projects with anonymous teams.
Based on your research, grade the organization behind the project on a scale of 1 to 5.
3. History
The project must have shown strong growth in:
- Transaction volume
- Active users
- Trading volume
- Liquidity
- Trade pairs
Based on your research, grade the history of the project on a scale of 1 to 5.
4. Algorithm
The consensus mechanism and technology platform must be robust. This information can be obtained by an analysis of the project’s GitHub repositories.
Based on your research, grade the consensus mechanism and technology platform of the project on a scale of 1 to 5.
5. Social
The project must have a large, vibrant, active, engaged, positive community with a fair share of fanatics. The major social platforms are Discord, Facebook, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.
Based on your research, grade the social community of the project on a scale of 1 to 5.
Red flags
I stay away from projects where:
- Any ROHAS parameter is below 3.
- The project seems too complex.
- There is sustained negative publicity around the project.
Disclaimer: I am not a registered investment, legal, tax advisor, or broker/dealer. All investment / financial / legal opinions expressed by me are intended as educational material. You should consider seeking independent legal, financial, taxation, or other advice to check how the information relates to your unique circumstances. I link to or refer to external resources for your convenience. I am selective about them but I don’t endorse them.
This post was first published in the Crypto With Rohas newsletter: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w
