How to Research Crypto in a Volatile Market (2024 Edition)

Hey, Welcome to Newsletter #5

Volatility dominates the 2024 crypto with Blackrock, Mt. Gox, Grayscale messing with the market like a yo yo. But juicy hidden gems with explosive potential remain exciting.

You will need to do your research to find these hidden gems.

Beware!

Without good research, your crypto journey is at risk.

Dont get dominated by scammers or bad research!

Thorough research is your shield against scammers and bad investments.

Here's my battle- 10 tested approach to finding promising tokens and reducing the risk of rugs, scams, and losing your hard-earned money:

1. Understanding Coins vs. Tokens: Understanding the Coin vs. Token 
   
   Coins (e.g., Bitcoin, Dogecoin, Ethereum):

   • Have their own blockchain infrastructure.

   • Operate independently on their respective blockchains.

   • Used primarily as digital currencies.

   Tokens (e.g., AIOZ Network, Jasmy Coin):

   • Built on existing blockchains like Ethereum, Solana, or Polygon.

   • Dependent on the parent blockchain for transactions and security.

   • Often used for various applications beyond just currency, such as decentralized finance (DeFi) or governance.

2. Looking Beyond Price:

   • Long-Term Viability: Projects with a clear roadmap and a solid foundation are more likely to survive and thrive in the long run. They often have sustainable business models or utility that can support their growth over time.

   • Utility: Tokens that serve a specific purpose within a decentralized ecosystem (like governance tokens or utility tokens for specific services) tend to have more intrinsic value and demand, which can contribute to their long-term success.

     

   • Community and Development: Projects with active and engaged communities, as well as continuous development and innovation, are more likely to adapt to market changes and technological advancements.

   • Risk Management: While low-priced tokens may seem attractive for potential high returns, they often come with higher risks, including volatility and uncertainty about their future. Investing in projects with strong fundamentals can help mitigate these risks.’

     

   3. Past Performance Is Not Indicative of Future Results:

   • Avoid "get rich quick" schemes based on historical spikes.

   • Focus on emerging projects with strong fundamentals.

   • Recognize potential early, as seen with Jasmy Coin, Aerodrome, and AIOZ Network.

     4. Simplicity and Clarity:

   • Opt for tokens with transparent goals and understandable mechanisms to reduce confusion.

   • Complex projects often pose higher risks; prioritize clarity in goals and mechanisms.

   • Enhance your ability to evaluate potential risks and rewards effectively by choosing straightforward token projects.

   5. Social Media Presence:

      • Shows an engaged team and strong community support

      • Demonstrates commitment and transparency

      Inactive social media:

      • May signal a lack of development or community involvement

      

   6. Trust and Credibility:

      Look for strong partnerships:

      • Established entities (e.g., Sony, Visa)

      • Teams with proven industry experience

      Independent audits:

      • Certik

      • Peckshield

      • These add assurance to a project's integrity

   7.Whitepaper Evaluation:Technical Whitepaper

   • Focuses on technical details(Professional pdf), not flashy Power Pointpresentations

   • Showcases developer dedication and vision

   • Critical tool for understanding:

     • Project goals

     • Roadmap

     • Underlying technology

   

8. Understanding Tokenomics- Use CoinGecko for token analysis:

   • Distribution

   • Supply dynamics

   • Trading volume trends

   • Role within the project ecosystem

   Helps assess:

   • Growth potential

   • Stability

9.Technical Whitepaper:

• Focuses on technical details, not flashy presentations

• Showcases developer dedication and vision

• Critical tool for understanding:

  • Project goals

  • Roadmap

  • Underlying technology

Step 7,8,9,10 will help finalize your decision fresh in your mind. This is why they are toward the end.

10. Keep Updating and Sharpen Your Tools.

• Follow project channels: Social media and Telegram groups for projects you're interested in. Look for timely updates,community discussions, and insights into their progress, challenges, and milestones.

• Research the team: Look for partnerships with established entities (e.g., Sony, Visa) and teams with proven experience in the blockchain industry.

• Read the whitepaper: A comprehensive whitepaper focused on technical details showcases the developers' dedication and vision. It's a critical tool for understanding the project's goals, roadmap, and underlying technology.

• Analyze the token: Use platforms like CoinGecko to analyze a token's distribution, supply dynamics, trading volume trends, and its role within the broader project ecosystem. This helps assess its growth potential and stability.

• Choose reputable exchanges: Opt for exchanges known for high liquidity and strong security measures. Platforms listed on CoinGecko often provide transparency ratings and user reviews to aid your decision-making.

• Monitor social media: Follow cryptocurrency news websites and influencers for the latest developments and trends in the industry.

Remember, while historical performance can provide insights, it's essential to acknowledge the inherent volatility and risks associated with cryptocurrency investments.

Always conduct thorough research, diversify your portfolio, and seek professional advice if needed to make informed investment decisions.

Thanks for reading.

Ney Mons