Hey Guys, This is Optin Bhai! here hehehe :)…. So first of all I want to say a big thank you to you guys for joining our Telegram Community and this mission to learn crypto everyday.
Why I chose writing instead of Making Video?
Well, because I like to write a lot, plus this is something that I generally can not explain better in a Video because it is a step by step guide on how to do fundamental research for cryptocurrencies. By the way, sooner of later I will make a video tutorial too on my youtube channel. But I am trying something cool this time, on this blog, I can write what I call letters to you guys. This is like a letter to you people on how to find the best cryptocurrency out there. So let’s just jump write in to the main topic.
How much to invest?
In a new project, you should always invest the amount that you are willing to lose. Like 5$ or 10$ according to your portfolio. Basically 2-3% of portfolio. These coins are mostly not listed on WazirX or Binance type big exchanges that’s why when the listing news comes, you will make another good profit. I personally invest my profits in new coins. I find these coins with my own research which takes a few weeks but for a simple guide, you can get an idea how it is done.
So first of all If you want to find a good long term project that can give you easy 10X gain, you first will have to go to CoinMarketCap or CoinGecko where all coins are listed. They basically list all of the coins whether they are good coins or bad or meme coins.
After you go there, you have to search for coins that are below the top 20 or top 50 coins because the coins that are already on the top have less chances of giving a 10X return or more. It is mainly because the coins become more close to the market cap of bitcoin as it gets more and more towards in the top 10 coins list. So we have to pick a coin, which has a potential to come into the top 50 coins in future.
Market cap is an important thing to notice in a new coin because Bitcoin currently is the king of all cryptocurrencies and as I always told you that When any new money comes in to crypto, it is first used to purchase Bitcoin not any other altcoins simply because it is what people first listen about.
So you have to make sure the coin that you are choosing is not in the top 20 already or top 50… because then it would already be close to the total market cap of bitcoin which acts as the limit for the market cap of all other altcoins(until bitcoin stays on top).
Find a coin that you find interesting whether it is by market cap, circulating supply or simply if the name is cool. Clicking on the coin, you have to do these things now.
Check the Circulating and Maximum supply of the coin. If you want very big returns, you have to find a coin that is way more undervalued as compared to it’s circulating supply. Always remember the rule of business,
If supply is less, Price is more and If Supply is more, Price will be less.
If you find a coin, let’s say a coin which has price of only $0.6 when it’s circulating supply is only hundred million, then you should go to the next steps. Again, don’t think that supply is the only thing, There are way more things that are needed to learn about a coin.
Now go to the website of the coin and check which blockchain are they using. Do they work on Ethereum or Binance smartchain or anything else or do they have their own blockchain?
On their website first thing is to notice the design of the website. If the company is professional there should be no spelling mistakes or bad error on their site.
Next, you have to see the whitepaper of the project. The whitepaper is like a formal document which explains the project, read the paper, It isn’t necessary to understand completely the contents of the paper but make sure you get an Idea about what problem the project is trying to solve. If the problem is something that you think is worthy and this project may solve it in the future, you are good to go.
Few things necessary to check in a crypto :
Twitter page – It is really necessary to have social media pages of the project, Check how much are they active on twitter.
Events – Are they announcing new things from time to time? check on their blog or twitter.
MOST IMPORTANT : Check their team members. There should be an option to check who are the team members on this project. Make sure they show their faces, and the more genuine and information about team people is project, the more trustworthy the project can be.
That’s all, I hope you get an Idea on how to research about a coin and how to invest in hidden long term gems.