Updated: Aug 3, 2021
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These research methods are specifically for medium to high cap cryptocurrencies. However, following the basic ideas of these methods with other links will get you into good habits for anything you're investing in. Further research methods and links will be provided in another article for low cap cryptocurrencies in the future. We hope you enjoy!
When it comes to cryptocurrency, there is arguably nothing more important than doing your research. This is easier said than done, who has the time to do their due diligence with any given crypto project? After all, there is a lot of information out there and it can be hard to figure out what is real, what's fake and what's just straight up Hopium and peddling. However, if you're serious about your cryptocurrency aspirations, you are going to need to learn how to do your own research.
The research will help you figure out which cryptocurrencies to buy and which ones to stay away from it will make it easier to figure out when to buy and when to sell those cryptocurrencies and it will even help you educate your friends and family about this magic internet money. Plus, if you do enough research, you might even find yourself working full time in the cryptocurrency space, just like me.
I am not a financial advisor and nothing in this video should be considered financial or investment advice. Be sure to consult your financial advisor before you do anything bold. If your financial advisor doesn't know anything about cryptocurrency, well, you can direct them to this article so they can start learning. Funny how that works, isn't it?
Here at Professionals Review, we do more research than a non-tenured Harvard professor. My field of study why cryptocurrency, of course, consider this review to be one of my many crypto publications. If this is the sort of knowledge your brain soaks up, then pay a visit to that subscribe button and check our telegram community t.me/ProReviewGems so you don't fall behind on your crypto studies. I want to start off by telling you the primary reason why I decided to cover this topic. Every time I make an article, I see comments from you good folks asking me to cover other cryptocurrencies and crypto projects. Now, believe it or not, many of these cryptocurrencies and projects are usually on my to-do list already. The problem is that I alone can't cover all of them in a timely manner. Well, I could, but then I wouldn't be doing the amount of research that's necessary to give you the in-depth analyses you all know and love.
The first step in doing your own cryptocurrency research is figuring out whether the crypto you're interested in is economically active. I can't tell you the number of times that I've come across a promising cryptocurrency project, only to check its market activity and see that the coin has been dead for months or even years. As such, when you hear about a promising cryptocurrency that piques your interest, the first thing you need to do is go to a website like coinmarketcap.com or coingecko.com to see if it's alive. In most cases, coinmarketcap.com and coingecko.com will be how you find out about that cryptocurrency, to begin with. If this is the case, be sure to check the trading volume and price action you are seeing is genuine. Not only should that token be listed on at least one reputable exchange, the trading volume on that exchange should also be significant. If it isn't, you could find yourself paying a premium since the order books may not be as deep. If the crypto you're looking at isn't an ERC20 token that's being traded almost exclusively on a deck like uniswap, be sure to proceed with caution as dex do not exactly have any listing criteria or requirements. This certainly does not write off a project, but it is something to keep in mind going forward.
Also, keep in mind that the price of a cryptocurrency and even its recent price action is not a good enough reason for you to abandon ship with few exceptions. Once you've established the crypto you fancy has an economic pulse, it's time to get a sense of what it is and how it works.
When it comes to wrapping your head around a new cryptocurrency YouTube is a good place to start. The problem is that you're probably going to find yourself skipping through videos of people reading off of website home pages and doing piss poor technical analysis. For the large market cap players in the crypto industry why you should also pay a visit to Messari.io Research.binance.com, and an ICO tracking site like icodrops.com.
When you use these resources, be sure to take notes and write down any questions you might have. You aren't trying to get answers yet, you're just trying to get a primer.
Now I've mentioned Messari.io before as being a powerful tool you can use to analyse cryptocurrencies. You can learn all about that from many videos on YouTube. What you're looking for on Messari is the profile section of the cryptocurrency you're interested in. Here, you'll often find a thoroughly comprehensive breakdown, including the history of the cryptocurrency incredibly detailed tokenomics, and token allocations, and even a timeline of the project’s past and future development and funding milestones. Be sure to jot down the names of any key individuals involved in the project, namely the founder and CEO, assuming they're not the same person, you're going to need this later.
Now in contrast to Messari, Binance Research often takes a more technical approach to analyze any given token. This is useful in understanding the core components of the cryptocurrency you're interested in, and how they work.
The great thing about Messari and Binance Research is that because they're big players in the space, there is a degree of professionalism that's expected from them. In other words, they have to do a good job and get everything right or else fans of the cryptocurrencies they're writing about will launch an attack and they could even see some more severe retaliation from a crypto project itself. The only issue is that the information on Messari and Binance Research is usually a bit outdated. You can't blame them considering writing hot off the press crypto content isn't exactly their main shtick. This is why you shouldn't take anything written by a third party as the be-all and end-all of your research, even if that source is reputable.
Now for ICO drops, ICO tracking sites like ICO drops are sort of like time machines in that they often source old images and documentation that's no longer available on the website of the cryptocurrency you're investigating. This makes it easy to spot whether a cryptocurrency project has changed its course or if it's simply trying to bury the past. Unfortunately, the total amount of money raised that's reported by ICO drops and similar sites is not always accurate and tends to include any funds that were raised in private funding rounds or across multiple ICOs held by the project.
As such, you should always check and see if they provided any images that can give you a better breakdown of how money was raised and where tokens were allocated.
Remember that Messari does a good job of tracking this so you can compare and contrast Messari’s data with what's on ICO drops. To clarify exactly how a given crypto project raised its capital. What you're looking for here is a token allocation that doesn't make you want to run for the hills. Specifically, you want to make sure that most of the tokens that have been issued or will be issued are in the hands of the community and not in the pockets of the people who founded the project. This is because they could potentially sell those tokens when the price starts to rise, which would prevent the coin from going as high as it otherwise could.
Now again, this is not a deal-breaker but when checking a cryptocurrency tokenomics on Messari’s, assuming that everything seems to look good on that front, it's time to head back to YouTube.
Now that you have a good grasp of the new cryptocurrency you're interested in; you'll need to hear it all from the horse's mouth. Since you remembered to write down the names of the key individuals involved in the project.
Your next task will be to find the most recent interviews they've done that are up on YouTube. I recommend arranging them in chronological order before watching them. I found that watching interviews with key members of cryptocurrency projects offer a treasure trove of information that you won't find anywhere else.
Moreover, these interviews often go a long way towards helping me wrap my head around any technical elements of a project that I could struggle to understand by just reading their documentation (pro tip) watch these interviews at two times speed to save time and take advantage of timestamps if there are any.
The chances are things you hear during these interviews will answer most of the questions you might have had about the cryptocurrency when you read about it on Messari and Binance Research, watching the brains behind the project in action will also give you a sense of whether you're dealing with the next best thing or with fool's gold and here's another pro-tip, check the LinkedIn profiles to see if their credentials have any merit. Ex-Google or Ex-Microsoft doesn't mean anything if they work there for a few months and they were fired for being drunk on the job. If they were fired from mining crypto, however, they deserve a firm high five.
Finally, try and see if you can find the YouTube channel of the cryptocurrency you're researching. If you're lucky, you'll find short videos which explain the core components of the project in plain English. This leaves two more steps do your research and that's the fact check everything you've learned so far and figuring out what's in store for this crypto.
How many times have you gone to the website of a cryptocurrency you're researching only to feel overwhelmed by the information being offered? I reckon it's a big part of why most people just read the homepage and the about section and call it a day. Unfortunately, most of the information on a given cryptocurrencies website tends to be platitude upon platitude about banking the unbanked or some other noble cause they claim to champion.
To be blunt. Most of the content on a cryptocurrency’s website is useless and isn't going to help you figure out if the project is worth your attention. You're going to waste a lot of time poking around through their site if you don't know what you're looking for. But since you remember to write down the key components of how this crypto works, and any questions you might have about it.
Your next mission is to go through and check that everything you learned still applies, and solve any mysteries that might have arisen since you started your research. Most of this can easily be done by digging through the cryptocurrencies dedicated documentation. If you're lucky, you'll have a friendly search bar where you can just throw in key terms like tokenomics, inflation, ICO, consensus mechanisms, mining, staking, and any other topics that you feel you still need clarification on.
Otherwise, you'll have to search through the documents manually. Since cryptocurrency documentation is usually geared towards developers, many of the pages you pull up will contain some lines of computer code.
Now, this might seem intimidating, but more often than not, you'll find that a simple explanation of what's going on is put at or near the beginning of the page in layman's terms. If you're still having trouble finding answers about tokenomics, try and dig up the white paper, find the tokenomics section and see if this provides any additional insight. If it doesn't, try and find a blockchain Explorer for that cryptocurrency. If it's an ERC20 token I recommend using Etherscan. Here you can quickly check who the largest token holders are. And you can even see the token distribution in a pie chart.
Again, be on the lookout for any wallets that are holding a substantial amount of the token and remember that the largest wallets you see will sometimes be smart contracts used for things like staking. If your cryptocurrency of choice isn't an ERC20 token hopefully the blockchain Explorer for it will also let you see the Rich List of token holders. If not consider that a red flag.
Now that you've hammered out any kinks in your understanding of the cryptocurrency, the last thing you need to do is see if there are any important updates to the project that might be coming or have already happened.
For the last part of your cryptocurrency research, you are going to need briefings, a roadmap, a blog and the news. And in this order, because what you see in the news about a cryptocurrency is normally just a summary of what's been written on their blog. Note that these news articles can come in handy if the blog post they reference is too lengthy or complicated to digest.
Now about the roadmap, from my experience, cryptocurrency roadmaps tend to be vague and do not usually provide too much information. You'll probably come to find that watching interviews with founders and CEOs will provide much more information about the future of a project than its roadmap. If you're lucky, you'll find a roadmap that contains realistic goals that can be achieved before the project runs out of funding, or gets wrecked by its competition.
If you're unlucky, you'll get no roadmap at all. And if the interviews you've watched don't give you a sense that the project is going to be around for very long, you might be looking at a short-term investment. The future isn't all that matters, though. You need to make sure that a project has delivered what is promised so far. This is where the blog comes in.
If you're having trouble finding a blog on a cryptocurrencies website, chances are you'll find it on their medium page. Sometimes you have to go as far as their GitHub to see their progress. And that's when you should ask yourself if the project is walking on thin ice. Skimming through the headlines of cryptocurrency projects blog is usually more than enough to get a sense of whether it's been true to its word and where it's headed. It's a good idea to read any updates you see that are significant, such as those relating to changes in tokenomics, or any big partnership announcements.
Finally, pop open cryptocurrency news sites like cointelegraph.com, coindesk.com and decrypt and search to see whether what you're promising project is up to has made the headlines. If you don't find anything, don't take that as a bad side. As with the mainstream media, the crypto media has its way of doing things and it doesn't always shed light on the topics that need to be seen.
By this point, you should have all the information you need to make a good judgment on whether a cryptocurrency is worth it or not. If you don't, then you're probably dealing with a crypto project that you need to be very careful with, or even stay away from. I hate to say it but this could also mean that you'll have to go back and look closer at the resources you used in your research. I know that doing your cryptocurrency research can be a lot of work. But ask yourself this are a few hours of research worth making for a 100x return or more on your investment? Yes, they are.
So to recap my research methods are...
First, I go to coinmarketcap.com or coingecko.com to see if the token is being actively traded, preferably on reputable exchanges. If it's dead, it ain't worth my bread.
Second, I go to YouTube and see what other people have been saying about the project. I take down a few notes if they mentioned anything noteworthy. Next, I check out Messari and Binance Research to get a better sense of what the project is and how it works. I take down some more notes, write down a few questions and jot down the names of the founders. I then check ICO drops to see how much money the project managed to raise and how the tokens were allocated. I use the images they've referenced along with Messari to double-check the details listed here are correct.
Third, I go back to YouTube and watch almost every recent interview with the project CEO or found out more often than not, what they say answers many of the questions I've written down in the second step. They also tend to clarify any confusing components of the tech that went over my head. I also check to see if the cryptocurrency has a YouTube channel that offers additional insights and explanations. Assuming what I heard didn't turn me off.
I start the fourth step of digging through the project's documentation. I look for any additional details relating to the cryptocurrencies, tech, tokenomics consensus mechanisms, staking rewards, mining requirements, and any other core components that I've learned about so far.
Finally, I comb through their roadmap and blog to see if they've been making the progress, they've promised so far, and whether they can realistically dish out what they claim they'll be serving. Then I see if their activity has made the headlines in the crypto space. If not, this may present an opportunity to be ahead of the curve. Either that or it means that I just wasted a few hours of my time. I make this judgment based on the research I've done and to be frank, I don't always get it right.
In any case, I reckon this is a bulletproof strategy for doing effective cryptocurrency research. To me, it's the perfect blend of watching, reading and repetition that not only allows me to make quality content but also ensures that what I've learned sticks around long after my video has made it to the tube. It's easy to forget that cryptocurrency is a very new field that's still very much in its infancy. This means if you can get good at doing your crypto research, you will become one of the few people who knows what's going on when the retail FOMO starts to hit during this bull market.
The result is not only that you'll make better investment decisions, but you might just find yourself being offered opportunities beyond your wildest dreams. If you found this useful and insightful please let us know in our Telegram community at https://t.me/ProReviewGems
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