Which cryptocurrency is the right one for you?

28.03.2022

Before you say anything - yes, cryptocurrencies are not “one size fits all”. That's why we can't tell you which crypto to invest in, because investing not only requires your money, you'll also have to spend some time doing your own research to determine which crypto would be a great investment for you. In this article, we will give you some guidelines on how to do your own research on cryptos and help you navigate through information more easily. We hope that this will make conducting your research faster and easier.

Assuming that you already know a bit about crypto in general and you've had a brief look over the market, you probably already have some cryptos in mind that you would like to invest in. First of all, if your choices are smaller, little-known altcoins, it is necessary to consider where did you find these cryptos, what did you hear about it and if these information come from reliable sources. Once you're sure that these crypto projects are legit, there are 3 basic types of analyses to perform:

Technical analysis - you're probably already familiar with this one, it involves analysing past price indicators and making predictions based on historical trends. If you need help with this one, we have a #technical-analysis channel on our Discord server, where anyone can share their knowledge or get some advice on their technical analysis.
Sentiment analysis - this type of analysis involves analysing available content and data about the particular crypto shared by other sources and determining whether most of them are negative or positive - basically evaluating the general public opinion of the coin. For this, you can use articles, online forums, reviews, or again, platforms like Discord. However, be aware that these opinions may be biassed or in other ways influenced and not fully objective.
Fundamental analysis - this is the analysis of the crypto project from the very beginning to present, including its core ideas, values and philosophy.

None of these analyses are “better” or “worse” - they all have their strengths and limitations, that's why it is always best to try and look into all of them. Interest of people is what makes crypto projects profitable, therefore you always need to ask yourself whether the crypto is likely to massively gain popularity in the near future. Keep in mind that any drawback might be an important indicator of the crypto's future performance, so make sure that you are not overlooking the disadvantages - in fact, you want to look for those drawbacks. If it's near to impossible to make the coin look bad based on the drawbacks you find, then it might be worthy of your interest.

Now that you have an idea of what we are looking for when researching coins, we can proceed on what to research. First of all, you can take a look at the economics of the asset (also known as “tokenomics”). Is more and more being produced or are amounts being destroyed overtime? Will new coins ever stop getting mined? Then, you can take a look at how this crypto was released to the public in the first place.

Another factor to take into account are the people behind the crypto - who are the creators and the stakeholders? What is their history and experience? You have to determine, based on your research of these people, whether you trust them, and whether you would support them or not. You will likely not be familiar with all the names of the creators, and that's okay - you can also find out if some public figures that you trust support this crypto. It's not enough, however, to know that Jason Derulo supports Solana (although that might be some kind of indicator, too), you ideally want to also ask what is this person's experience with crypto, what is the reason behind this opinion and if this person is a credible source of information.

A reason why the crypto was created is also important - does it address any valid issue or was it created “just 'cause”? And not only that - does it actually provide a solution to that issue? This also ties into the question of the coin's potential and capabilities, because every project has its limits. A small crypto project that only addresses a certain issue on the Ethereum blockchain could be profitable, but will likely not overpower Bitcoin.

Lastly, you may be asking where to find all of this information. The whitepaper of the cryptocurrency that you are looking into is a great place to start. Then, of course, their website, social media and official partners. This info is obviously not objective, so from there, you'd want to proceed to crypto news portals, YouTube channels or just generally, crypto-related media. Just use your good old friend Google for this and pay attention to which articles may be sponsored or biassed in any other ways. Last but not least, getting the opinions of other crypto users is a great way to get some more insight from a relatable point of view. Social media, Reddit and Discord are great platforms for this.