It is nearly 2022.
Most people are still relying on a social media influencer..
Or a friend,
To guide their investment decisions in the crypto space.
We both know this isn't a sustainable approach.
How do you make these difficult decisions yourself?
Keep reading...
/THREAD
Most people are still relying on a social media influencer..
Or a friend,
To guide their investment decisions in the crypto space.
We both know this isn't a sustainable approach.
How do you make these difficult decisions yourself?
Keep reading...
/THREAD
I have been in the space since 2016.
I have learnt a lot.
Therefore this will be a compilation of multiple threads.
That is how important it is to know and understand what I am about to teach you...
/1
I have learnt a lot.
Therefore this will be a compilation of multiple threads.
That is how important it is to know and understand what I am about to teach you...
/1
Let's say you have a project called "X"
Start off by searching "X" on coingecko.com or coinmarketcap.com.
This should display a chart, among various statistics.
What is important is finding a link to their website..
/2
Start off by searching "X" on coingecko.com or coinmarketcap.com.
This should display a chart, among various statistics.
What is important is finding a link to their website..
/2
The next stage of identifying project "X" is looking at the problem the project is solving.
Is it important?
Do they solve it?
Do you understand how they solve it?
If your answer is no to any of these questions.
Keep your money as far away as possible from the project.
/3
Is it important?
Do they solve it?
Do you understand how they solve it?
If your answer is no to any of these questions.
Keep your money as far away as possible from the project.
/3
The next stage of your primary research should be to read.
Read the whitepaper/ litepaper/ yellow paper (whatever it may be called).
Usually it is an informational document usually issued by a company to promote or highlight the features of a solution it offers.
/4
Read the whitepaper/ litepaper/ yellow paper (whatever it may be called).
Usually it is an informational document usually issued by a company to promote or highlight the features of a solution it offers.
/4
Once you UNDERSTAND the whitepaper.
Anon, it is important you fully understand the contents.
Have a look at their roadmap.
Most projects usually have a roadmap lined up for thee next 4-8 quarters.
It helps investors understand where the project is heading.
/5
Anon, it is important you fully understand the contents.
Have a look at their roadmap.
Most projects usually have a roadmap lined up for thee next 4-8 quarters.
It helps investors understand where the project is heading.
/5
Now we have covered the primary aspect of researching a project.
The main aim was to identify the project's utility and how they plan to achieve it, alongside considering the real world impact.
Let us look at the secondary aspect of researching project "X"
/6
The main aim was to identify the project's utility and how they plan to achieve it, alongside considering the real world impact.
Let us look at the secondary aspect of researching project "X"
/6
To summarise before we delve further:
-Tokenomics
-Partnerships
-Team + Founders
-Market Cap
-Security Scanning
Unfamiliar with all of these.
No problem.
Keep with me...
/7
-Tokenomics
-Partnerships
-Team + Founders
-Market Cap
-Security Scanning
Unfamiliar with all of these.
No problem.
Keep with me...
/7
Let us start firstly with tokenomics.
In the near future, I will create a tokenomics centred thread.
Briefly, tokenomics is the study of the token economy.
Understanding economics of "X" such as total supply, soft cap/ hard cap, deflationary, lock up periods, mining etc..
/8
In the near future, I will create a tokenomics centred thread.
Briefly, tokenomics is the study of the token economy.
Understanding economics of "X" such as total supply, soft cap/ hard cap, deflationary, lock up periods, mining etc..
/8
When trading in a purely technical sense on an asset.
Tokenomics are unlikely to be a consideration however when looking at coins that are new, or yet to gain real traction, and have the ability to go 10, 100 or 1,000x in price you ignore the tokenomics at your peril.
/9
Tokenomics are unlikely to be a consideration however when looking at coins that are new, or yet to gain real traction, and have the ability to go 10, 100 or 1,000x in price you ignore the tokenomics at your peril.
/9
On to partnerships,
Some questions that you should be asking yourselves should include:
- Who has officially partnered with "X"?
- What does the partnership entail?
- Is it a strategic partnership ?
- What is the price impact of other projects with similiar patnerships?
/10
Some questions that you should be asking yourselves should include:
- Who has officially partnered with "X"?
- What does the partnership entail?
- Is it a strategic partnership ?
- What is the price impact of other projects with similiar patnerships?
/10
Team + Founders
Ideally they should be doxxed.
More often than not, teams not doxxed have been relatively more prone to scamming.
Credentials take precedence.
This is looking at their experience, partnerships, past projects.
A good way to gage this is via Linkeldn.
/11
Ideally they should be doxxed.
More often than not, teams not doxxed have been relatively more prone to scamming.
Credentials take precedence.
This is looking at their experience, partnerships, past projects.
A good way to gage this is via Linkeldn.
/11
Market Cap + Price Metrics
In the final stages of your research,
You should compare the utility of Project X with other projects.
Compare whether the market cap (not the price), aligns to a degree.
You should be able to make a judgement as to whether it is well priced.
/12
In the final stages of your research,
You should compare the utility of Project X with other projects.
Compare whether the market cap (not the price), aligns to a degree.
You should be able to make a judgement as to whether it is well priced.
/12
Security Scanning (often overlooked)
- Check number of users + wallet addresses
- Check who controls the majority of the coin
- Check for any security audits/ certificates like regulatory.
Anything out of the ordinary, should be a red flag to you anon.
/13
- Check number of users + wallet addresses
- Check who controls the majority of the coin
- Check for any security audits/ certificates like regulatory.
Anything out of the ordinary, should be a red flag to you anon.
/13
Then when these necessary factors have been checked.
Be open to others advice.
Knowing you can and only will invest in things you understand.
I wish you safe investing,
Good Luck !
/14
Be open to others advice.
Knowing you can and only will invest in things you understand.
I wish you safe investing,
Good Luck !
/14
Like the thread? Please do me a favor!
1. Give me a follow: @Crypto8Fi, I write data backed threads on altcoins and DeFi.
2. Give that first tweet a favourite/RT. It helps the thread be seen by more people. 👇
1. Give me a follow: @Crypto8Fi, I write data backed threads on altcoins and DeFi.
2. Give that first tweet a favourite/RT. It helps the thread be seen by more people. 👇
https://twitter.com/Crypto8Fi/status/1475115079863607300?t=6gzS6HS38w2XOWhwbPRPzA&s=19
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