Despite where you’re at on your path into crypto, I think one thing that we can all agree on is that finding good projects or doing your crypto coin research early is the key to long-term success, and building life-changing wealth.
But the reality is is that if you’re getting the majority of your crypto news from YouTube, you’re going to be behind those of us who aren’t, and couple that with the fact that crypto is arguably one of the fastest-changing industries out there, being the gateway for new emerging technologies, such as metaverse, NFTs and DeFi, just to name a few, makes it even harder to keep up on everything.
And that’s why we are going to be going through some great crypto coin research strategies on how you can officially research crypto projects, and find hidden gems including our favorite area in crypto, Masternodes.
And so the next time a YouTuber says, “This is not financial advice, do your own research.” By the end of the video, you’re going to know exactly how to do that.
This early 2020, about two and a half trillion is floated into the crypto space and in reality, it’s probably just getting started but what projects are these funds being allocated to?
That’s the question we’re going to try to discuss today, as well as how you can streamline the crypto researching process because it can be time-intense at times but as the old saying goes, “Give the man a fish, he eats for a day, teach a man to fish and he eats for life.”
Discovery Phase For Crypto Coin Research
Now, the first stage of project research we like to call The Discovery Phase, and this is just trying to find projects that you want to do a deeper analysis on. And my two favorite sites that I like to find projects to look at are Twitter and CoinGecko.
CoinGecko is a price-tracking website, and along with tracking prices it has a slew of other crypto stats like volume, ranking, and more specifically recently added projects. And after you create an account, you can create a watch list which is great for your crypto coin research.
So what I or one of my team members do is about every other day, we’ll go in and we’ll look at the projects that were recently added that has a volume of over 1 million.
We’ll start it, and that will be a good starting point to see if we want to analyze it even further, some categories that I really like right now are NFTs, metaverse, and Masternodes.
And from here, you can sort by volume, market cap, circulating supply, and the list goes on. I just wanna make sure that some volumes are there because, without volume, price, or anything else is pretty much irrelevant.
The project needs to have good liquidity, and good volume in order for it to even make sense to invest in. And as I said, Twitter is one of the other places I love to do research on. I found some gems on Twitter.
The two main ways that I use for my crypto coin research are by Twitter hashtag research. So I’ll just plug in a hashtag, and an example would be NFT or Masternode or metaverse. And that’s a great way to populate some great crypto projects.
And another great way to do Twitter research is to use the external site called whotwi. And what you can do is plug into some crypto influencers in there, and see who they are following.
Once you plug in the user or even one of your favorite project’s user IDs, what you can do is see what projects they are following or interacting with, and that is a great place to start.
The last and probably most straightforward way I use Twitter is just to see what influencers are posting about.
So it’s a great way to stay ahead of the curve. Another site that I love to use in this discovery phase, is CryptocurrencyAlerting.com This tells you all of the coins that are coming up on exchanges in real-time, and the reason why I wanna know this is because usually there’s some barrier to entry of crypto projects entering on exchanges that could be monetary.
It could be certain audits that need to be done, and I wanna see what projects those are. So that’s a great place to start as well.
And the last two sites to close out the discovery phase for crypto coin research that I wanna talk about are Discords as well ICO drops. ICO drops can tell you about the projects that are coming up that’s even before they even hit the exchange.
So definitely wanna check out ICO Drop. Even if it’s in the ended section of ICO Drop, you can still find some gems in there as well after they hit the market.
And then also there’s Discord, which can be one of the most time-consuming ways but also the most fruitful. So you just gotta get in there, and start networking and asking people questions.
Surface Level Analyzation For Crypto Coin Research
Next up is phase two or Surface Level Analyzation. And the whole goal of this phase is to answer some questions, to see if the project is worth doing an even deeper dive on. So by the end of this stage, there are going to be a few questions that we need to be answered.
Question Number one is, I wanna know one to two sentences about what the project does, and what problems are trying to be solved here. This is going to be one of the most important questions to answer because we need to know why people are investing in this project.
If it’s a Masternode, are people just investing in the project because of the rewards or is there a use case beyond the rewards? If the use case does not match the rewards, once the rewards are tapered investors will then move out of that project.
Next up, we wanna know are the founders of the crypto project docs. I will say at this point about 75% of all of the projects that I invest in have at least one docs member. And this means that we know the identity of at least one founder.
And the reason why this is so huge is that it greatly reduces the risk of there being a rug pull or the investors running away with all their money when their personal credit is on the line.
The next question that I want to be answered is what percentage of the tokens do the founders have? How decentralized is the actual project?
The more centralized or the more tokens that the founders have, the riskier it becomes because they can just dump all of their coins on the market, completely reducing the price.
And this could be found in the company’s white paper, which describes the entirety of the project, and that’s always found on the company’s website or you can just go in the Discord, and start asking around as well.
I’ll also wanna know who is the biggest competitor in the space. For example, the play-to-earn game, Axie Infinity is one of the largest games with a market cap of around 3 billion.
This means that the project you’re researching if it’s in the same space, it’s going to be very hard for that project to exceed that market cap unless it comes along, and does what AXI infinity does better. So it’s just good to keep that in mind.
For things like Masternodes where you have to stake a certain amount to receive a certain amount of rewards, I wanna know how much I have to stake in order to get that investment, and a great place to do research on this is Masternodes.com.
Not all projects offer Masternodes, and it’s a great site to see what coins are offering investors Masternodes, how much the project is, and what the rewards are.
So to go a little deeper into Masternodes, I wanna know how long is it going to take for me to break even for staking that project, this may sound counterintuitive but the longer the break-even time, usually the better I feel about the project.
So many projects now are offering investors recoup times less than four months, and that’s just not sustainable. So let’s look at the project SRX, which is about $2,000 to get into, and recoup time on this node is about 10 to 12 months, which is pretty sustainable.
So let’s look at this from a stock perspective. Right? Berkshire Hathaway offers its investors dividends and let’s say they had a $10,000 buy-in but they said that “Okay. You spend $10,000 with us, we’ll give you $3,000 each month in dividends.” That may well create upfront but it’s not going to be sustainable, and the project itself is going to have a hard time sustaining growth, eating itself from within.
Another example of it may not make sense to pick up a node is if the cost of the node is too expensive. An example of this would be Syscoin. Syscoin has a node and it’s a great project but it costs $81,000 to pick up a node. So unless you just wanna hold the project itself, it may not make sense to pick up that node.
Deep Analyzation For Crypto Coin Research
Next up is the final stage before investing in the project, and its Deep Analyzation for crypto coin research. And this is where you wanna know the fundamentals of what you’re actually investing in and knowing it inside and out. The first place I like to start with this is interviewing the founders.
If you think of it like no one else knows that project better than the founders themselves, and I wanna hear what it’s about, and who the founder is.
Oftentimes, we’re investing in projects we’re not only investing in the project, We’re investing in the person who created that project, and if that founder has certain areas that they need to work on, the project is probably going to have those same weaknesses.
If the project is dox or one of the members is dox, I like to go to LinkedIn as well, and check the founder’s resume just to see a track record of what they’ve done. And after one or two interviews, you should have a good idea of those questions that you wrote down, and they should be answered by now.
Look at the Roadmap and White Paper For Crypto Coin Research
Next up, and this is probably one of the most important parts of the crypto coin research is looking at the roadmap and the white paper.
So if you were to look at every white paper of every project you looked at, you would waste so much time because the reality is that we’re only going in on a small handful of projects, and some things that I’m looking at for here are there going to be any token burns or happenings in the future?
How much was dispersed to the founders? What’s the roadmap like? So if it’s a crypto game, I wanna look at when are they actually launching that game? Is it going to be in a few months, next year?
If it’s a metaverse token, when are they having land sales? Is that happening soon? Is that happening in the year? Just so you can get an idea behind the project because, without utility for some of these projects, the price might just stay stagnant for a while.
And there’s nothing wrong with holding a project, it remains stagnant for a while but it’s good to know going into the investment. And the reason why we wanna know about the supply being burned is because of basic economics.
You cut the supply, which usually means an increase in demand, which means an increase of price hinged on the fact that utility is there.
And sometimes in this phase, I’ll go to Google Trends, and I’ll type in something like Bitcoin, and I’ll probably type in some other crypto like Cardono or Shiba Inu or Dogecoin.
Something big that just has high search volume. And then I’ll type in that crypto project against it just to kind of get a frame of reference. Just to see how much search volume this crypto has. And odds are smaller projects, probably aren’t going to have much there, but you never know. You might get lucky.
And sometimes in the related section of Google trends when you type in Bitcoin, you can see some other projects as well that a lot of people are searching for, which might be good for phase one when you’re just trying to find projects to research.
Check into UpdatesFor Crypto Coin Research
And the last thing I’m going to do before getting into any crypto project is check Twitter, the announcement section of their Discord, and just Google for any updates and news for my crypto coin research.
And this could be good or bad but I want to know that going forward so I can have the most informed up-to-date decision before I invest my money.
And a bonus method that you can do for your crypto coin research is once you find a project that you like, you can paste it into a site called SpyFu, which is completely free, and see all of the organic competitors that pop up around that search topic for that project. And I’ve actually found one project doing this.
So it takes a second. Paste the site into SpyFu, and it will generate five leads per site. You can take those leads that you get, and then plug those back into SpyFu, and you can keep doing this until you have no more new leads.
And that’s how I do my crypto coin research. I wanna know though, how do you do your crypto coin research? Let me know in the comment box if I left anything out for crypto coin research.