In the crypto worlds there are thousands of different projects, over time some will go up, some will go down some will go away, so before we throw our money on another shit project we should do some research and only then invest our money in a project with real potential.
This is how I doing my resarch and I hope this advices will help to some of you.
(Apologies in advance for my english grammer, it’s not my native language but im try to do my best )
Understand what the project you are interested in trying to solve and how it helps the blockchain world and the world in general, understand the technology of the project, it is not necessary to understand in detail any crumb of information (at least not in the first stage) but at least understand the technology concept and its implementation in the project.
Social networks and blogs
Marketing is one of the most important points in any project, the marketing usually takes place on social networks (Twitter, Telegram, Reddit, Facebook, LinkedIn, YouTube, etc.) as well as in various blogs (medium, blog in the project website, etc.)
Go to the company’s blog, see if it is properly maintained on a regular basis.
Enter the project’s telegram channel, do the project team update subscribers with regular updates?
there is any webinars, video calls,. with the project team? watch them.
The website of the project is the face of the project to the outside world, check that there is an official site (with preference for the English language), check that the site is pleasing, maintained, contains project related documents, references to social networks, description of team members and consultants, do not settle for names and pictures- Check that these people do exist in the real world, on LinkedIn, Facebook, Twitter, check that their accounts are active and that they upload valuable information related to the project.
A project without a roadmap not worth our money, make sure that the project has a tidy roadmap, at least at the level of quarters so that you can see what is planned in the project in the near future.
If there is a old roadmap for past quarters, check whether the project has indeed met the goals it has set for itself.
Be sure of one thing, when a project gets a client, investors, collaborations or significant progress in the project it will announce it wherever possible, if you do not find such announcements that a sign that there are none, no one hides such data.
Investments and collaborations
Who are the factors that decided to collaborate or invest in the project? Are you recognize their names? thhere is a big companies? Familiar? Find out who those organizations are under the heading of “investors”, look for related collaboration announcement, check how much they invested and what they got in return, large organizations do not just invest, they do comprehensive research, , check what is behind that investment and what is the value the the project give to those investors.
For me this is one of the most important points, if a project has been running for a long time and does not get a few customers so the project is in trouble and we do not invest money in a project that is in trouble.
When projects get customers, they announce it on social networks and on their website, they take care to update the investors, how many customers does your project have? How often is a new customer added? Who are the customers? Big companies? Small companies? Why did they become customers of the project? What value did your project give to the customer?
Friends, if your project has no customers, it has no right to exist, very simply, like any other business.
Market capitalization is an important parameter for understanding the earning potential of your investment,the market capitalization can be found on a site like coinmarketcap.com under the Market capital column.
Things to pay attention to:
If your project has a high market value and has no customers it is probably a project that at the moment what motivates it is mainly big hype and big expectation from investors, keep in mind that if the market value is high and there are no customers then the price of the project already includes future profits.
What is high market capitalization?
There is no answer to this, because the numbers can always be higher, at least check what is the ,arket cap of similar projects, or better than that, competing projects
There is almost no project that has no competitors, there are always projects that offer something similar, check who the competitors of the project, what is the current situation of the competitors? does the competitors already have customers and extensive adoption? What is the market cap of the project you are researching in relation to the market cap of the competitors? Does this ratio make sense?
The market cap is usually derived from the current value of the currency and the amount of coins in circulation. check the amount of coins the project has allocated? Is there a maximum limit? If there is no limit, if there is no limit is there a reasonable inflation that fits the technology of the project?
Weak points / Downsides
If you focus only on the good things it will be difficult for you to make an informed decision, therefore, when you are researching a project you need to know what its weaknesses.
How will you find them?
Go to YouTube, look for videos about the project, listen to the downsides they present, check whether these are indeed significant downside, are these the downside that the project team addressed? (maybe the tam addressing this downside in the roadmap, blog?)
Although I love watching the videos of the coin bureau (the guy is a genius!) Do not watch videos of just one guy, listen to a few different videos and you will get different viewing angles.
I’m sure you’ve seen it, time and time again these massive influencers give you advice, but then say the magical words “but do your own research”….ok, but how? I know most people will just look at other videos and posts but it’s all the same, a secondary source. I come from an intelligence and data background and the concepts are the same, so let me explain them to you:
Learn about the topic from top to bottom
For crypto that means learning everything, especially the technology! Yes, that may sound ridiculous, but how much to do you really know about crypto? Market caps? Blockchains? Fibonacci sequences? Air drops? Exchanges? Legal and regional restrictions? How the technology really works? This is all important in understanding the environment you are putting your money in. If you have to ask yourselves, “why?” when people tell you why something is a good investment, maybe you should learn about the basics. You can find many answers per project usually, just look up the official source for your crypto!
Collect data and filter for information
Basically this means: it’s ok to watch these flashy videos and posts that will tell you “it’s gonna boom at any second…” but try to find some posts saying why it won’t, or try to prove their theory wrong yourself. If you can’t, then maybe the original data was accurate, now it’s information you can use! (Maybe! Nothing is 100% and information can be wrong!). People being “bears” is not a bad thing at all, even though people (especially on this thread) shut them down and call them stupid. As long as you can logically go through an argument (almost like an equation ) you can use that logical reasoning responsibly!
Ask for failure!: what this means is, ask people who messed up, or try to learn why you failed! Failure is the best teacher sometimes, and I can tell you many things that I messed up on, I thought polkadot was a terrible investment when I first got in at a few dollars, now it’s hovering $40! But now I know the reasons and signs I was looking for were incorrect!
Watch the news: I know this may seem obvious, but you would be very surprised in the amount of people who are completely oblivious or ignorant to primary sources of information. I would almost only consider primary sources as news in this space right now. For example, the creator of ADA has his own YouTube channel and streams almost every day and explains his project, and other projects as well. Many channels in this community have interviews with people from massive projects, CEOs, and SEC members. This is info straight from the horses mouth, not a video on a tweet of a tweet!
Avoid massive influencers, they are not in this for you
I’m probably going to upset some people, but here’s a big one: ignore the internet whales, and yes, they are whales. Biggest culprit that comes to mind is Bitboy. I’m not saying his content is bad, but he has a habit of click baiting price predictions, changing his initial assessment or prediction wildly, and pumping coins via videos after an already substantial pump. For example, he just started putting out videos on how VET is a sleeping giant, I could of told you that a year ago! And that was when it already hit .058 cents! I bought at .006 last year! I’m not a wizard, it just seemed like a good investment for the long run, and I got lucky. Point is, it’s easy to spot a bear once it runs out of the woods.