We’re within the midst of an enormous Crypto crash. So what ought to a brand new investor do?
We’re within the midst of an enormous Crypto crash. Right here’s how a lot the highest cryptos are down as in comparison with their All-Time Highs.
- Bitcoin is down 63%
- Ether is down 72%
- BNB is down 65%
- Cardano is down 85%
- Solana is down 89%
- Dogecoin is down 92%
- Polkadot is down 87%
I deal with pre-listed robust tasks with stable prospects and I exploit the ROHAS technique to judge new crypto tasks.
Within the ROHAS technique, it is advisable to grade a crypto undertaking on 5 parameters:
- Income
- Group
- Historical past
- Algorithm
- Social
1. Income
Perceive and analyze how the undertaking generates revenues for the ecosystem and what’s the world financial influence of the undertaking? This data might be obtained from:
- the official web site of the undertaking
- the White / Mild / Yellow / Beige Paper of the undertaking
Primarily based in your analysis, grade the income mannequin of the undertaking on a scale of 1 to five.
2. Group
The group / crew (founders, dev, enterprise) have to be highly-skilled and have robust prior expertise, robust credibility, and constructive social media standing.
This data might be obtained from the LinkedIn profiles of the crew members. Be cautious of tasks with nameless groups.
Primarily based in your analysis, grade the group behind the undertaking on a scale of 1 to five.
3. Historical past
The undertaking should have proven robust progress in:
- Transaction quantity
- Lively customers
- Buying and selling quantity
- Liquidity
- Commerce pairs
Primarily based in your analysis, grade the historical past of the undertaking on a scale of 1 to five.
4. Algorithm
The consensus mechanism and expertise platform have to be sturdy. This data might be obtained by an evaluation of the undertaking’s GitHub repositories.
Primarily based in your analysis, grade the consensus mechanism and expertise platform of the undertaking on a scale of 1 to five.
5. Social
The undertaking should have a big, vibrant, energetic, engaged, constructive neighborhood with a fair proportion of fanatics. The foremost social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.
Primarily based in your analysis, grade the social neighborhood of the undertaking on a scale of 1 to five.
Pink flags
I keep away from tasks the place:
- Any ROHAS parameter is beneath 3.
- The undertaking appears too advanced.
- There may be sustained detrimental publicity across the undertaking.
Disclaimer: I’m not a registered funding, authorized, tax advisor, or dealer/supplier. All funding / monetary / authorized opinions expressed by me are supposed as instructional materials. You must take into account in search of impartial authorized, monetary, taxation, or different recommendation to test how the knowledge pertains to your distinctive circumstances. I hyperlink to or consult with exterior sources to your comfort. I’m selective about them however I don’t endorse them.
This submit was first printed within the Crypto With Rohas e-newsletter: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w