A successful investment in a new crypto project might bring a good income to the user. Usually, such investments are considered as long-term ones, and they require endurance, analytical and investment instincts, as well as confidence in their choice from the trader. Everything should pay off when the new project is up and running. And if the investor did not make a mistake at the first stages of the research, then at the end of this path he should be awarded.
Searching for a potentially successful crypto project can sometimes take too much time. That’s why unsuccessful investments are often made – the investor loses his nerve and chooses the first "acceptable" project that catches his eye. Usually nothing good comes out of this.
It happens that the process of researching a worthy crypto project gets stuck – sometimes investors might hit a dead end. And then you can turn to alternative methods of researching.
Working with cryptocurrency involves constant monitoring of the latest news. Whether it is tracking the rates, changes in economic and political spheres, environmental news, etc. All this allows you to predict what the next dominant trend in the market will be.
Rumores, as they say, cannot be trusted, but you can listen. Usually, they don't just pop up out of nowhere, they always have some purpose. The investor needs to use all his analytical skills and be able to link the situation here and now with the one that happened last season or a couple of years ago. This will help to create strategies and will be able to indicate the correct vector for investments. However, it is important to remember that the news sector is an extremely unstable and even unreliable thing. Sometimes it’s impossible to understand if the information you found is true or not.
Experts recommend following the news in the field of macroeconomics. Of course, they will not tell you right away what and how to invest in, but they will give you food for thought and push you to the right actions. Also, in modern realities, it would be nice to always keep an open tab with updated inflation data. Main news sources for crypto investors are: The Block, Coindesk, Decrypt, Cointelegraph, Bloomberg, CNBC, The Wall Street Journal, Financial Times.
On-chain analysis of the crypto projects involves the study of data from the blockchain with further forecasting of the situation. On-chain analysis uses different data:
- the total number of addresses;
- their growth rate;
- the balances of exchanges;
- analysis of the short-term and long-term holders.
At first glance, it may seem that on-chain analysis only collects information about who and what is doing in the blockchain. In fact, everything is much more complicated. It is not so easy to get information from blockchains. To do this, you need to use special programs like data query services (The Graph, BitQuery) and analytical services (Nansen.ai, parsec.finance, IcyTools, moby.gg.)
OSINT technology (Open Source INTelligence) became known to the world in the 40s. At that time, intelligence officers in the USA were analyzing shortwave radio signals from alleged "enemies". This is how the method of reconnaissance based on open sources was born. Today, it has been smoothly integrated into the space of cryptocurrency projects.
OSINT helps to find hidden information from open places. The success of such research depends on the skills of the crypto investor. For example, by using this method, you can find:
- Information about domains and server;
- Open personal data;
- Social media;
- Metadata of various media materials from open sources.
OSINT search tools include Google Hacking techniques, the Kali Linux platform, the Termux smartphone program, and the GitHub tool.
Exchanges in digital currencies are transparent, so people can find the information about different deals. Using OSINT technology analysts can even find sources of illegal activities with crypto. For instance, two individuals were arrested in Manhattan while conspiring to launder $4.5 billion in cryptocurrency that was stolen during the 2016 Bitfinex hack.
Tracking market signals
While searching for potentially successful crypto projects, it is good to monitor the crypto space. The slightest change in the market and the project from promising one turns into a failure. The Crypto World is unpredictable. That is why it is important to track:
- indicators of changes in market trends;
- actions of large funds and influencers;
- time frames of the current hype in the market in order to compare it with previous cycles;
- financial opportunities of market participants.
We can sum up this article with just one phrase: the more the experience, the higher the success. This perfectly applies to crypto projects and investments. You can spend hours learning the theory and studying all the risks, but never try the process itself. Experienced investors are used to trusting their intuition when making a decision.
Have you ever invested in a crypto project? How did you conduct your research? Was it a successful experience? Share your story in the comments below!