How I Empower My Crypto Research

My 4 Checklist Points When Conducting My Crypto Research

To help empower your own crypto research

Why is the cryptocurrency and Web3 space not being utilized to its full potential? Simply put, there is just so much information and misinformation out there that it makes doing your own research tedious and quite frankly, confusing. But, doing your own research is crucial for investing in cryptocurrencies as well as the Web3 space. To add insult to injury, we are in a bear market, with the volatility of cryptocurrencies, and the downfall of FTX, cryptocurrencies are leaving people with less confidence to believe in its potential.

On the bright side, cryptocurrency and Web3 are in their infancy, and in years to come will be the new normal for future generations! Here are my 4 tips that I start with when conducting my own research.

Tip #1 - Read The White Paper

For my beginners, you might already be asking, "What's the white paper?". The white paper is a document created by a crypto or Web3 project that explains the technology, information behind its concept, and a roadmap for how it plans to grow and succeed. While you may not understand every bit of information within the white paper, find the bits that resonate with you and write down all the questions you may have to help you dig up more information. If a project does not have a white paper, that's a big red flag.

The more you can read up on a project the better. While, yes, there is a lot of misinformation out there, you will also find sites and internet communities that share your same interests and questions regarding the project.

I personally pay particular attention to a projects roadmap. How a project plans to be successful, leads to gains in my success which usually comes in the form of utilities. I also look into if the projects message personally resonates with me. For example, what is the concept behind the project and what problems they plan to solve within the crypto/Web3 space?

Tip #2 - How Active Is It?

Crypto Twitter is a great place to start for this. Almost every cryptocurrency and Web3 project as an active Twitter account. I want you to basically fall down a Twitter and Social Media rabbit hole with this one. By checking out their social media platforms, you get a more intimate look at what type of community a project is creating within their space. Is this a community you can see yourself being a part of? Can they support you in the way you need to be supported? You can also begin to get the know the developers and admins of the project. How many other projects have they worked on? Have they been successful?

Projects are using their platforms to inform their investors and future investors with real time updates and announcements regarding their progress, as well as their hardships.

If a project is inactive, it could have been abandoned or it could be a crypto scam.

Reddit and Discord are also great platforms to check out when researching a crypto/Web3 project.

Tip #3 - Check Out The Tokenomics and Market cap

Token + Economics= Tokenomics. This is the study of the characteristics of a specific cryptocurrency. It describes a token's use and value, creation and distribution, supply and demand, incentives, and burn schedule. It's essentially everything related to the economics of the token. Some tokenomics questions to research on a project are:

• How are new tokens issued?

• Is there a limit to how many tokens can be on the market?

• What proportion of the tokens are held by the project's founders?

A token's market cap is a much better indicator of its value versus its price. The market cap is determined by multiplying the current market price of a token with the circulating supply. A big market cap typically means the token is more established and most likely more stable.

Maybe the project plans on creating millions of coins and there's no limit to how many can be minted, this would lead to a dilution of the market and would cause the token to go down in value. Listen to your instinct and pay attention to anything that doesn't feel right.

Tip #4 - Exchange Platforms

Lastly, with all the alleged rumors swirling around the downfall of FTX, researching your crypto exchange platform of choice is also necessary. There are over 20,000+ cryptocurrencies on todays market and only a small fraction are listed on the top 3 cryptocurrency exchanges. You don't get a gold star of approval for being listed, but it does indicate how well-established a project relatively is.

If you're just starting out, opting to exchange on a centralized platform might bring you a bit more comfort and confidence. Such as; Binance, Coinbase, and Kraken. For the more experienced investors, you may opt for a decentralized exchange. Such as; Uniswap, dYdX, and Curve Finance. Both centralized and decentralized platforms have there pros and cons, so whichever route you choose, make sure the platform contains the cryptocurrency your researching.

Bonus Tip - Find An Education Course

While you should, always do your own research to gain further experience, there are also digital education courses that are available to beginners and experienced traders.

Courses like, Crypto Cash Flow, have created easy to learn step-by-step modules to help you gain confidence in the crypto and Web3 space. With its two founders both well versed and successful in the crypto and Web3 space, this is a great course and tool to add to your research foundation.

Empower Yourself

I want you to feel empowered and confident when doing your own crypto/Web 3 research. Sadly, there's a lot of misinformation out there and the internet is big place. But, learning to do your own research will help you navigate through all the noise and hype, and get you to the core essentials of a project. Embrace the learning experience. Even though it's currently a bear market, that just means prices are low, which leaves room for more potential gains. And if you need some extra help, courses like the one mentioned above are great learning resources. Click here to learn more and thank you for reading!

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Disclaimer: This editorial content was created for the sole purpose of education and is not financial advise. Please seek financial advise from a trusted financial consultant or advisor