How To Do Crypto Research Before Investing - inMetaPedia

How To Do Crypto Research Before Investing
 How To Do Crypto Research Before Investing


Crypto research is the first thing you need to do before investing in any cryptocurrency if you don’t want to lose your money. There are more than 17,685 cryptocurrencies in the market and you should have knowledge about which one is the best cryptocurrency and which one is more potential to multiply your money.



In this article, we will learn how to do perfect crypto research before investing, so read the full article if you are serious about it.

There are many cryptocurrencies in the market that’s why you can’t research each one, so the first thing is that you need to select one cryptocurrency at one time, and then grab the information about it from the internet. There are multiple platforms where you can read about your favorite cryptocurrency. CoinmarketCap is one of them you can do research here for every cryptocurrency. You can know everything about every cryptocurrency on this platform. This is my personal favorite platform where I can also research for my crypto investment.

 

Cryptocurrency has two faces one is Crypto Coin and the second is Crypto Token. So you should know whether you are investing in Crypto Coin or Crypto Token.

DeFi (Decentralized Finance) Full Explain

 

What are Crypto Coin and Crypto Token?

 

A digital currency that has been created by its own Blockchain Technology is called Crypto Coin.

Example – Bitcoin, Ethereum, Cardano, etc…

The currency created from someone else’s Blockchain Technology is called a Crypto Token.

Example – Shibu Inc, Dai, Binance USD, etc…

 

After clarification between Crypto Coin and Crypto Token, you have to move on to the source code.

Source Code is the statement is based on the programming languages created by its programming team. Every Cryptocurrency has open-source code so everybody can see it. This is also a big reason for the increasing number of cryptocurrencies.

You can also copy the source code of any cryptocurrency and create your own cryptocurrency, but you must have good knowledge about programming knowledge, otherwise, you can’t.

And then comes the second most important part of the cryptocurrency.


White Paper

The white papers provide us some information about the company. In white papers, we can see the Goals, Technology, Strategy, and Problem Solving features. If you don’t feel that this cryptocurrency is not solving any problem in the market, then maybe it is not that good for investment.  And if it solves any problem in the market then that’s a plus point of it.

  • Goals
  • Technology
  • Strategy
  • Problem Solving
  • Team – You should know which team is working behind that cryptocurrency and how many members are there in that team. It is also important to know how active that team is.
  • Founder – You should also know about the founder of that cryptocurrency and also understand the vision of that project. So it will help you to choose a perfect cryptocurrency.

 

NOTE – If you notice any of these points in any cryptocurrency then it’s good. You will know all these points from its white paper.

 

Circulating Supply

Circulating Supply means how much amount of that cryptocurrency is present in the market. It cannot be more than the Total Supply.


Total Supply

Total Supply means how many total numbers of that cryptocurrency exist on the Blockchain.  It can be more than Circulating Supply.

The lesser the thing, the higher will be its value, and the more the thing, the less its value will also be. So don’t forget the Total Supply of that cryptocurrency if you want a high return.


How To Invest

There are many crypto exchange apps in the market, you can use one of them. While doing research, you also have to pay attention to how many exchanges is that crypto present. The more exchanges they are present on, the better it will be for investors. 

 

Just For Information

Market Cap = Current Price × Circulating Supply

Fully Diluted Price = Current Price × Total Supply


You can also check the social platform of that cryptocurrency, see the news, listen to people what are they talking about, whether it is bad or good news, or be in the market.

Make proper notes before investing, if you don’t research before investing then you don’t have a right to call yourself an investor. You Are A Gambler. 



Tarun Vishesh

For over 4 years, Tarun Vishesh has been a noteworthy leader in the inMetaPedia space. You may know him from his work as the admin and publisher at inMetaPedia.

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