Investing is hard. But you can simplify it.
This is the title of a YouTube video I watched a few weeks back.
I hope you enjoy it too.
Anyway, today's article is not about that video. But I hope it can help you "dehard" your crypto investing process.
In this post, I want to share with you the process I use to discover, learn about, and pick the coins I invest in.
With the hope that you may find it useful as part of your DYOR toolkit.
There are thousands of different cryptocurrencies out there.
And trying to study all of them one after the other in order to find which is good to buy now or later is nearly impractical.
How I pick coins to invest in
One of the benefits of hanging out with the awesome people in my Telegram group and other crypto communities I lurk around is that I get to hear about new and different coins almost every day.
Either from members talking about it among themselves or someone asking me about it directly.
And it is my responsibility to learn as much as I can about the coin or token and provide my opinion.
1. Looking it up
I prefer using CMC most of the times for this purpose as it provides more detailed information about the cryptocurrency below the page.
So I will read up everything about the new coin on CMC.
And also check out its tokenomics (mostly the maximum, total, and circulating supply), current price and total marketcap.
More so, I will take a good look at the charts under the various time-frames (daily, weekly, monthly, quarterly, yearly or the all-time price charts) that interests me.
2. Watchlisting it
If the newfound coin looks interesting and seems like something that has potentials, I will add it to my watch list on CoinGecko.
Currently, there're 26 different coins on my watch list on CoinGecko.
And I monitor and try to learn as much as I can about each of these coins over time.
Sometimes, I discover new coins and I am too busy at the moment to look it up.
What I do is simply add it to my watch list immediately and continue what I am doing.
Whenever I am less busy and ready to look at them, I have them handy in my list.
Over time, I will come to know the coins on my list very well enough.
And then the ones I am very confident in, I move to my "coins to buy list". The ones I'm not I simply remove them from my list to create space for fresh ones.
3. Buy list
Anyone I consider good for me to invest in I move to another watch list on CMC.
This other list is my "buy these coins when you have the money list".
But that a coin has entered my buy list doesn't mean it cannot be removed from there.
This is a constant struggle. I keep an eye on their performance and if I lose faith or interest in one I move it back to the CG watch list.
Or discard it totally if I have come to a negative conclusion about it.
All coins on either watchlist are constantly being monitored, evaluated, and re-evaluated to keep tab with the market developments.
I never invest in most of them, but I will know a lot to provide my free opinion to anyone who's interested.
That is my new coins evaluation procedure.
But Orxad, a member of the Telegram group has a similar but slightly different and interesting process that he uses to choose his coins to buy.
According to him:
...when I hear about a coin that spikes my interest, I also check out more info about it using CoinMarketCap and CoinGecko sometimes.
Then I could check if it's listed on Binance to monitor the price trends in real-time😅
If it looks promising, I could buy some if I have the capacity at that point in time and then, continue to follow updates on it.
The major difference between me and him is that he takes action immediately if he has the money to buy the coin right now.
Whereas I wait it out until I have sufficient information and understanding of the project.
There's nothing bad with either strategy.
I choose the wait it out route because I have different coins that I "degen" into.
And the coins under consideration (in my buy list) are mostly for long term investments.
So I have very little incentive to rush into buying them.
The projects I buy on impulse and with little to almost zero research with "risky dollars" (money I can afford to lose) are mostly those high yield farms on BSC (Binance Smart Chain).
I suggest you too should have risky dollars you keep around for "seizing the moments" kind of degenerate gambling (investing) sometimes.
And my gains from successful degen operations go into the coins on my buy list.
So, over to you. What is your own new coins evaluation procedure? Share with us in the comments section below.