Back to Blog
by Finage at October 6, 2021 5 MIN READ
Crypto
A new wave of Initial Coin Offering and funding market sees a period of massive flourish in the cryptocurrency area. It was driven by the excitement around the decentralized finance (Defi) sphere. Many coins related to it rose in price. If you are a medium explorer, interested in trading, or ready to invest in cryptocurrency and increase your earnings (at least not to lose money on it), it is crucial to choose the right promising project.
One of the first and most essential steps when it comes to investing in the cryptocurrency area is extensive research. Let’s check how to research so you can get a profit and make the right assumptions in the financial world.
Step #1: Explore & Review Basic Data
Step #2: Check the White Papers
Step #3: Learn All Details About the Crypto
Step #4: Find out About Employees & Partners
Step #5: Add Other Sources into Your Research
Step #6: Find Out How to Buy Crypto/Token
Step #5: Sum Up All the Above & Learn the Risks
If you are a newbie, we offer to begin investigating the current popular currencies: Bitcoin and Ethereum. Yes, you can find many online sources to research but you start with the following books:
After that, you can research small projects. You can find hundreds of various startups, but how can you choose the best one?
When choosing projects, we recommend researching new and smaller startups, and studying the "White Papers" — a promising company has to have detailed documentation. It must clearly describe the problem that the developers are solving, including the past of the project team. Other significant parameters include:
You can also learn what people behind the startup think about it, see the feedback and reviews on any existing issues. After gathering the above data, you can create a SWOT analysis.
As an investor, you should learn about currency in all possible details. Here are the points to pay attention at:
It is a crucial point as we all want to invest in quality, and a good team is a priority. Search through social media and see the previous experience, other projects, and qualifications. You can find useful data on LinkedIn/Twitter/Facebook. You can also ask to make a video call to connect with a team and find people from the community to ask more questions.
Another crucial point is to learn about the strategic partners. Established companies are an important factor as they help to get additional resources, be advertised, etc. So if the startups have many partners, it is a good sign.
After you cope with the above tasks, you can learn more about the project from external reliable sources. You can get information from other developers, check the newspapers, research the competitors, for example:
So you have chosen a potential cryptocurrency startup. Now check their monetary system. You have to focus on learning where & how you can purchase the project’s tokens/cryptocurrencies, is it exchange or you can get money by a contract. You need to understand how high the market cap is.
Another crucial aspect would be the usage of the Ledger/Trezor or other similar and popular hardware wallets. It also helps to understand how you can store your coins. Remember, reliable crypto companies provide such wallets.
After gathering that information, you can get a common understanding of a project and your potential risks. Concentrate your attention on the below points:
We guess it's time to do some quality research, check references, and make investigations. Take your time to avoid mistakes and focus on analysis. Do not lose a lot of money because you did not properly check if the project has established legal forms. It could be the investment opportunity of the decade, although there is a lot of junk in the industry. Therefore, it is extremely important to choose projects that have a real value and fundamental basis for growth.
You can build your Cryptocurrency platform with Finage free Crypto API key.
Build with us today!
Featured Posts
Blockchain Innovations: How They’re Reshaping Cryptocurrency Markets
April 26, 2024
Smart Contract Advances on DEX Platforms: Opportunities and Risks
April 25, 2024
Sector Focus: Which CFDs Are Investors Watching Closely This Year?
April 24, 2024
What's New at Finage: Latest Features and Services for 2024
April 23, 2024
Predictive Analytics in Stock Market Investments: Latest Tools and Techniques
April 22, 2024
Categories
Forex
Finage Updates
Stocks
Real-Time Data
Finage News
Crypto
ETFs
Indices
Technical Guides
Financial Statements
Excel Plugin
Web3
Tags
Explore & Review Cryptocurrency Data
Check the White Papers
Learn All Details About the Crypto
Find out About Employees & Partners
Add Other Sources into Your Research
Find Out How to Buy Crypto/Token
Sum Up All the Above & Learn the Risks
Join Us
You can test all data feeds today!
Start Free Trial
If you need more information about data feeds, feel free to ask our team.
Request Consultation
Back to Blog
Please note that all data provided under Finage and on this website, including the prices displayed on the ticker and charts pages, are not necessarily real-time or accurate. They are strictly intended for informational purposes and should not be relied upon for investing or trading decisions. Redistribution of the information displayed on or provided by Finage is strictly prohibited. Please be aware that the data types offered are not sourced directly or indirectly from any exchanges, but rather from over-the-counter, peer-to-peer, and market makers. Therefore, the prices may not be accurate and could differ from the actual market prices. We want to emphasize that we are not liable for any trading or investing losses that you may incur. By using the data, charts, or any related information, you accept all responsibility for any risks involved. Finage will not accept any liability for losses or damages arising from the use of our data or related services. By accessing our website or using our services, all users/visitors are deemed to have accepted these conditions.