How To Research Crypto Coins: A Beginner's Guide
Cryptocurrency has recently become the talk of the town. Many are saying that it will soon replace fiat currencies, which, if will happen, will undoubtedly impact everyone's life. While others have started investing in the crypto world, many are becoming curious and interested in it. Some people have been asking around some friends or colleagues or have started some reading. If you really want to know the real deal about cryptocurrency, it is essential to get information from reliable people and sources. Don't worry, as this article will teach you how to research crypto coins.
Learning how to do proper crypto research will not only let you save money and time but also help you improve future investment decisions. Knowing and identifying potential opportunities can significantly increase your success in your investments.
Ways On How To Research Crypto Coins
One of the advantages of doing your own research is getting information and seeing different perspectives from different angles and opinions. Participating in forums, watching informative videos, talking to people who know about the trade are only some of the fundamental ways to learn more and become more confident in your investment endeavor.
Explore Social Media Platforms
This platform is a great venue not to ask for advice but to follow the crowd. Social media has a vast population, so it is easy to know what coins most people will likely to invest in.
- Facebook - there are two groups on Facebook that are active and keep their followers updated with the latest news and events: Crypto Coin Trader and Crypto Traders News. Crypto Coin Trader has around 115,000 active participants. Their members and the group's admin, can be accessed quickly and are always willing to help out. On the other hand, Crypto Traders News has 52,000 members. They usually talk about altcoins but not promotional stuff. This group will help you learn and understand new cryptocurrencies and general market sentiment.
- Twitter - there are many experts in the Twitter-verse, so it is really beneficial to follow them. Some of them are financial analysts, researchers, accredited investors, and famous traders. There are also several crypto-celebrities you can follow, and you will certainly learn a lot from them. Some of them are avid Bitcoin analyst or a good author on cryptocurrencies.
- Telegram - this platform can significantly help you with your cryptocurrency research as it gives updates, trends, and market sentiment analysis. Be careful, though, in joining or participating in certain groups as some are infested with fake followers and bots, and their only purpose is marketing.
Analyze Upcoming Events
One way on how to research crypto coins is by analyzing upcoming events. It is necessary to take a global viewpoint if you want to learn more about cryptocurrencies. Yes, social media is helpful, but that alone is not enough as it is only a small piece of the puzzle. There are several platforms online where you can search and know upcoming events, such as CoinMarketCal. Doing this can help you expand your network and become more informed and help you make better short-term predictions.
Do Research On The Fundamentals
Learning a coin's fundamentals is necessary to discover the crypto money's real-world usability. There are many kinds of coins and tokens in the crypto world, and it would certainly take a lot of time to look for and learn about the 2% of them that can bring something new and different to the table. From here, you will also find out that there is a need to explore the existing concepts in cryptocurrencies and how they are currently performing.
Find and Discover Trending Topics
This is one of the most important steps on how to research crypto coins but is, in most cases, often overlooked. Checking the trend of coins and events is necessary to analyze the market sentiment as it will give you excellent overviews of the people searching for a particular topic. There are several ways to do it. One is by using Ahrefs to help you see how many pieces of content have been written about a certain topic every month. Another tool is the KWFinder, which is used to analyze month-over-month search volume for a particular keyword.
Utilize Niche Forums
Participating in forums such as Bitcointalk and other crypto-related subreddits is useful for two main reasons. First, it will give you more in-depth information about the coin you are interested in. Second, it gives you opportunities to talk with more experienced individuals in crypto trading than you.
Attend Crypto Meetups
Some may think that attending certain meetups is lame. However, on the contrary, it can be an excellent experience as this will give you a chance to meet people who are equally or more enthusiastic than you about cryptocurrencies. It will also give you a more extensive network of people like you who are into this kind of deal.
Observe Transaction Volume
By looking at a coin's transaction volume for a certain period of time, you can learn a more in-depth observation point. According to Bitwise, who conducted a recent study, only ten exchanges show their real transaction of the volume of the coins in their platform. These are Binance, Bitfinex, Kraken, Bitstamp, Coinbase, bitFlyer, Gemini, itBit, Bittrex, and Poloniex. Checking and learning the transaction volume of these ten crypto exchanges will surely take a long time, but it will also certainly give you more in-depth insights.
Now that you know how to research crypto coins, use this as a great start, especially when making investment decisions. There is no assurance that the methods in this article are accurate. However, they can help you widen your perspective and know more about the industry you wanted to join. Another important note to remember is that invest only what you can afford to lose. This is a very risky thing you are doing, but what is life without taking risks, right? Learn more about crypto coins here!
UPDATED April 5, 2021
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