Cryptocurrency
How to do your research in Cryptocurrency.
It will be a two-part article explaining how to invest in Cryptocurrency.
First, we need to understand that when we are trying to invest in any market, let it be cryptos or stocks, we have to analyze the whole market. Two different analyses have to be done before we invest, otherwise, it won’t be investing or trading but rather it will be gambling with your money.
So we should be clear with different analyses.
In this blog, I will talk about fundamental analysis.
Fundamental analysis is the study of actual ideas and the progress of a specific project.
Goal: Try to invest in bad projects. Look for drawbacks in the project cryptocurrency, and even after seeing the drawbacks, if the project looks stable and has a future, invest your money in the project.
Ask a simple question: Can I see a million people finding this coin and then buying it and holding it for a long time? If the answer is “yes,” then you can generate a profit in the long run.
Tokenomics simply means what it is the economics of the asset. Look if the coin is inflationary or deflationary. The value of inflationary assets decreases with time. The value of deflationary assets increases with time.
When talking about cryptocurrencies like Bitcoin, we should know that Bitcoin, as of now, is an inflationary asset, but as soon as the mining stops, it will become a deflationary asset as there is a limit to how much it can be mined.
Pre-sale data: We need to find out how a token gets out to the public. Initially, the coins are supplied or given to:
Uniswap, which is a popular decentralized trading protocol, is known for its role in facilitating the automated trading of decentralized financial tokens as an AirDrop.
There are different ways to release a coin to the public.
When researching a coin, we should always search for the people who are connected to the inner circle of the team of a particular coin. It gives us an understanding of how much someone will give to the community.
Check for coins’ social media accounts, mostly Twitter accounts. Their engagement with the community will give you a clear idea of how much involvement there is between them and their community. Then you can get to YouTube to see if other content creators are making a community or not because it will help people notice the coin and increase the price of the coin as more and more people will notice the coin.
Important
One of the most important things to do before investing is:
Useful Sites
Coinmarketcap: It can be used to perform fundamental analysis on the majority of crypto projects.
Vauld: It can be used for investing in crypto and it also supports the feature of fixed deposits. (Referral code: wqp9yzqjbz)
Wazirx: Indian cryptocurrency exchange to get started with investing in crypto. (Use referral id: 2cysgyyg )
