Everyone always says, “Do your own research!”, but how do you actually do your own research on a crypto? This task can be especially challenging when you are new to the crypto market or know relatively little about the blockchain technology. To make matters worse, the jargon surrounding crypto is unique to this industry.
Read the white paper, in freaking full
Don’t just skim it, thoroughly read it. Angel Investors do about 1,000 hours before investing in a startup company. While that much research isn’t feasible for you, you should at least take an hour or two to study the white paper (which acts as a business plan).
Demo/use the product or beta, if it’s publicly available
Many crypto companies don’t have a working prototype. If they do, be sure to use it and see how well it works for you. If they don’t, check their website and social media channels to see what developments they are making.
Watch any videos that the team itself has put out from the founders, or interviews, conference talks, etc
Evaluate the team – Check them out on LinkedIn, previous professional experience, work in the space, etc
This may the quickest way to separate strong companies from weak companies.
Evaluate the tech – If you have the expertise, dive deep, if not, at least see if the GitHub is active
If you come across a crypto term you don’t understand refer to our glossary for guidance. Don’t let fancy jargon fool you as intelligence.
Check Reddit/Twitter – Separate the shilling
Ask respected friends in your network. If you don’t have any yet, don’t stop networking until you find them.
In this video, Crypto Bobby shows you an overview of how to research a cryptocurrency in seven steps. Plus, Bob talks about his new daily habit of reviewing a white paper per day and why he thinks that knowledge, is such a MASSIVE advantage when it comes to the crypto markets.