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10 Tips On How To Carry Out A Good Research Before Investing In Your Coin Of Interest

By Tamacti | Tamacti | 1 May 2023


It is imperative for investors to study and know their crypto-coins before they risk their money;but how do they carry out the research method accurately and diligently?That is what today's article is about;we are going to discuss 10 tips you can use to carry out a good research on the coin you would like to invest in. 

 


1.The Idea:

The idea behind the coin's foundation has to make sense to you so that you will understand what you are putting your faith and risking in.A whitepaper published by the organization behind that particular coin is a good reference for that information. 

Example:

The Chainlink network is intended to be used to facilitate the transfer of tamper proof data from off-chain sources to on-chain smart contracts.

2. The Team:

As the cryptocurrency space is becoming more centralized;the information about individuals behind some coins gets disclosed. Find it and evaluate it.If an organization behind a coin chooses to remain anonymous (Like Bitcoin and Shiba Inu) that is also fine.

3. Team balance/diversity:

Make sure you assess the balance/diversity of the team behind the coin you want to invest in.It is a big advantage if a team consists of professionals such as Computer Enginneers & Blockchain Specialists,Entrepreneurs,Financial managers,Lawyers,Community managers, etc.These professionals are able to bring stability to the team when they work together.

4.Blockchain Technology:

You must trust their blockchain technology.Other cryptocurrenies run on well established blockchains like the Etherium blockchain and others opt to operate on their own blockchains.It is advisable to look at the blockchain technology the coin runs on and try to see if it is up to standard.

5.Development:

The organization behind the coin needs to develop constantly to stay competitive;so make sure the team develops the coin's ecosystem and it is up to date with the best technology. 

6.Market Performance:

We know the cryptocurrency market is volatile by nature;even with that being the case;the coin must show some degree of stability by establishing strong support zones and being able to withstand  the pressure of the market. 

7.Community

Hype and faith of the public plays a huge role when it comes to the coin's performance;the size of the community behind the coin must be convincing and they must support the coin for it to thrive.

8.Partnerships

Like in every other organization/company;relationships are important.The organization behind the coin must form partnerships with other good and thriving companies and it helps when there are businesses that help the coin's utility by accepting it as a form of payment.

9.Competition:

The coin must be able to compete with its competitors in terms of technology;market and community. 

10.Presentation :

From the website,to the logo & ticker symbol,to the social media platforms,everywhere.The establishment behind the coin must be able to present themselves with total professionalism.

 


Conclusion

With all that we have discussed today;it is of utmost importance to do your due diligence in researching about the coin before investing in it.Even after investing in it;it is crucial that one stays vigilant and ready to take action in response to ever-changing market conditions.

 


DISCLAIMER:THIS IS NOT FINANCIAL ADVISE; IT IS JUST MY TWO CENTS ON THE ISSUE 

 

 

 

 

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Tamacti
Tamacti

I am very enthusiastic about the crypto markets and I am always keen to learn and teach as much as I can about the subject


Tamacti
Tamacti

I am an entrepreneur filled with positivity and hope for a greater future;Cryptocurrency warrior and I love to teach

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