Crypto 101: How to research a coin?
January 14, 2018
January 14, 2018
This will be the first of series where we explain some of the basic topics in crypto for the new users. I am convinced – only way to bring any light into this world is to educate the world around You towards the better vision in mind. Knowledge is the most efficient solution against the terrors of today. So lets start on a topic that is itself a way to learn. Newbies often focus on fast gains and toss aside a far bigger concept that seems to be true throughout the creation – one needs to put in work to gain a better viewpoint. Yes, this means researching for hours, days and weeks. No shortcuts here. Lets get at it!
1. Bitcointalk and Coinmarketcap are Your best tools to use. Period.
Go and create an account for Yourself on Bitcointalk. It is the number 1 crypto forum on the planet. Everything pretty much happens there. Main place for You is Announcements Thread
That is announcements board where all the coins and other crypto related services announce their start. After posting in ANN thread, coin is considered public. There is hundreds and at times thousands of new coins coming on the market daily. Lot of them never end up anywhere, but they can be great source of information to find out what is popular on the market. If You go through them, trust Your gut. Its the best way to go because You cannot go through all of them. There is literally endless supply of new ones popping up constantly.
Coinmarketcap (often referred as CMC) is the website where all the coins of the cryptoworld are listed on and it is used to measure total market capitalization or in short marketcap which simply means how much money there is in the markets currently. CMC is also known as a website which makes the random sh*tcoin go legit. (Sh*tcoin, by the way, is a term for coins that end up going nowhere.) It is so, because CMC has a policy that coin has to have at least 10 000 usd daily volume before they list it on their site. This makes getting on their site a bit tricky and it makes all the difference in crypto. Being listed on CMC means that developers understand the unspoken rule – without CMC listing You are nothing. Big investors (often called whales) never invest into an asset that is not listed on CMC.
Cryptocurrencies’ total market capitalization is stated on the top of the main page of CMC. There is 24 volume rankings for coins and exchanges both. Biggest gainers/losers. So CMC is a wonderful site to visit every morning first thing, because it provides fresh information about the current state of the markets. If every price in the top 10 is in red and total marketcap is way smaller than before You went to sleep, You have reason to believe it is overall a bearish market. This means everything is going down and not up. Going up is marked with a term bullish.
2. ANN thread
It is the announcement thread of a coin on Bitcointalk forum. After announcing your coin to the public, users can comment on the thread. So basically it is a public backlog for everybody to read. You can find out if there has been a scam, bad service or something went well for the announcer. If You find a coin that feels right then read through the whole thread if You have time. You will see how developers (often called devs) are talking to the community. If their tone does not feel right or their agendas seem unclear – its time to move on. Reading through couple of the ANN threads can be a beautiful insight into crypto slang and how the world works. Google the unknown phrases and find out what there is to learn while reading. There is lot of people like You asking for explanations on those boards too so learning opportunities literally everywhere.
3. Join social media channels
Most used are Telegram, Discord, Twitter, Reddit, Medium, Slack. Lately Slack has been excluded from many because it lacks possibilities to give roles to the Admins and this is bad for the users security. This enabled lot of scamming and drove people away from using Slack, but lot of the coins have the Slack channel still available. Join in, get a big cup of tea and read back on the latest news on the social channel of Your choosing. This will show You in detail on what ideas devs are developing and could also be a good way to find out about bigger announcements before they make it to the bigger public. Personally i would advise against devs who hype their asset with phrases like “mooning” or “pumping”. Verbally aggressive ones are usually not a good choice either. On social channels, feel free to ask about the project so the community or the devs themselves can tell You about the project.
4. Look for dev blog
Devblogs are usually a great source of information. Often its the best place to find out about new developments before the info gets passed around on the forums. It can get very technical at times, but this is still a very nice way to gain a bit of an advantage.
5. Get creative beyond traditional!
Try to stay creative on the subject of how to obtain information about the asset You are researching into. Go through the ways explained here and then try to think if there is more ways to learn extra. Write down links You find on the way, try to make friends with someone with experience to dig into their thoughts, and most importantly DO YOUR OWN RESEARCH! Do not buy into facts, find out if they are true!
5. BEWARE OF OF THE SCAMS!
Anyone who is trying to help you out of the blue or offering you something cheaper than it actually is – its a SCAM! Always double check and do not let your emotion drive you into rough experiences. There are scammers on every step of the way. This is something inevitable to happen when something of a value is created, so we end this paragraph with an epic warning that rings so true to this day: Better check Yourself, before You wreck Yourself!
Always keep in mind: Be friendly and compassionate towards other users, no matter their experience level.
If You understand… then You should feel obligated to help the ones in need rather making their journey harder.
This is the only way for us to grow.