You have probably heard the advice to research any coin or project before you invest in it. But, what does that mean? How to research cryptocurrency?
How to research cryptocurrency?
Doing your own research is all about getting different angles and opinions. Searching through forums, watching Youtube videos, talking to people… all these are simply tools in your toolbox. The more tools you use, the higher more confident you will feel in your final decision.
1: Exploring Social Media platforms
Social media should be taken very seriously. Each platform offers specific insights and the past has repeatedly shown us that, when a coin is heavily “shilled”, it should see an increase in price.
Here is not the place to ask for advice, as most people are simply there to follow the crowd. The point is to see what the masses are attracted to – what coins they will likely invest in.
2: Analyzing upcoming events
Social media is a small piece of the puzzle. As with everything, you will need to get a global viewpoint. In this case, upcoming events can be a great information point, especially if you are able to identify how similar events worked in the past.To do this, I recommend CoinMarketCal and search specifically for the coin you are interested in.
3: Research the fundamentals
Long-term investors like to check a coin's fundamentals to discover which cryptocurrencies provide real-world usability. In most cases, new coins are simply trying to do what existing coins are already doing, but better. Can these projects deliver upon their promise? Can the decentralization of a given industry improve user experience? Or is it simply a way for the founders to fill their pockets, as we have so often witnessed?
4: Discover trending topics
This one is pretty important and often overlooked. When looking at how to research cryptocurrency, checking trending coins and events should be at the top of your list.
The best way to analyze the market sentiment is by getting a good overview of the number of people searching for a specific topic.
5: Utilize the power of niche forums
Forums like Bitcointalk or crypto-related subreddits can be very useful for two reasons.
First, you will get more in-depth information regarding the coin you are exploring as well as its upcoming events.
And second, you can talk with individuals that may be more experienced than you, by starting new topics on your point of interest.
6: Go to crypto meetups
People at crypto meetups are extremely enthusiastic and it is really interesting to hear how others had come to the same conclusion.
So, now you know how to research cryptocurrency.
