Chapter 8: Crypto Analysis

Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy

Interesting Fact:

Did you know that the first step of researching a crypto project should be checking out Telegram and Reddit, instead of the company's website?

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11 minutes

In this section, we’re going to talk about how to research crypto!

Crypto is no longer a buzzword. It’s already a household name for the financial system of the future. But… Getting into crypto didn’t get easier. Matter of fact, it’s probably the opposite, since the number of crypto coins is already in the tens of thousands, and news about new scams comes from every corner.

So, quite naturally, an important question arises: How to research crypto and how not to get tangled up in the maze of new projects, complicated terminology and overwhelming feeling of FOMO? Well, in this section, I will tell you all about it.

In this section, we’re going to look into how to research crypto, what to research when buying crypto, how is this process done correctly, and what to concentrate on while doing your own research.

Without further ado, let's get to it!

Crypto Research Fundamentals: How to DYOR (Animated Explainer)

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Crypto Research 101

First of all, ironically enough, even the word ‘research’ requires some research. Here’s what I mean.

How to research crypto: Research types.

Let’s say you’re about to begin researching a new crypto project. Alright, where do you begin? These projects often have many layers to them. You can conduct tokenomics research, airdrop research, DeFi research, NFT research… There are many aspects that require serious evaluation before making a financial decision.

Understandably, this may seem overwhelming. To start making sense of it all, let’s quickly define these different ways of researching crypto.

Tokenomics Research

So, what’s ‘tokenomics research’?

In this context, the term ‘tokenomics’ refers to inspecting the economic principles and the design of cryptocurrencies. Usually, tokenomics research consists of analyzing the coin's key characteristics. These are: supply, distribution, utility, and, in many cases, governance.

How to research crypto: Tokenomics research.

If you feel like you need to refresh your knowledge about these key indicators, be sure to check this section, where I cover and explain these terms in detail!

OK, back to tokenomics research. Analysis of this kind lets users estimate the functionality of a crypto coin, and whether it’s well thought-through. In many cases, it’s easy to spot red flags immediately. Let’s consider a well-known example.

Tokenomics behind the infamous BitConnect scam made it clear that this project was up to no good from its very inception. The project promised high returns to investors, yet they did not disclose how these returns were generated. In addition, the only utility for the token was… Investing in the Bitconnect lending platform.

Quite obviously, such an ordeal sounds dubious, to say the least. And, conducting tokenomics research was enough to avoid falling victim to this scam.

Airdrop Research

Moving on, let’s talk about researching airdrops. Let’s say you stumble upon a promising project, and airdrops are what they’re talking about.

The term itself refers to the distribution of crypto. The crypto that’s issued by the project you’re interested in. Once again, there is an entire section about this topic, be sure to check it out!

How to research crypto: Airdrop.

So, a project is organizing an airdrop. In order to understand whether it’s a viable move, and not just a cheap PR trick to attract attention, experienced users go and take a look at how this may affect the coin’s tokenomics, and its role in the DeFi ecosystem.

This means analyzing how the airdrop will affect the coin’s supply, demand, and whether it will not cause a massive drop in its value. Imagine if an airdrop quadrupled the coin’s circulating supply. The particular cryptocurrency would experience major inflation in the blink of an eye.

DeFi Research

I’ve mentioned that experienced traders take into account the project’s role in the entire DeFi ecosystem. But how do they measure such a criterion? By conducting DeFi research.

In its very essence, this means asking the big questions. It means evaluating the role of a particular project in the entire DeFi space. Does the project promise a solution to a problem that hasn’t been solved yet? Does the project offer a real use case?

Evaluating crypto projects based on their utility sounds like a no-brainer. Yet, you’d be surprised how many projects have been created just for the sake of attracting investors' money. And they succeeded just because the creators knew how to cover the uselessness of their project in hip, glittery buzzwords.

Let’s take a look at an example. Back in 2014, a new crypto was being introduced to the market. It was called Coinye. And yes, it was named after Kanye West. Quite obviously, this coin had literally zero utility, and was built entirely to capitalize on the pun. West’s legal team brought this project down very quickly, and the only losers were those who actually invested in it.

NFT Research

Many projects attract the public's attention by releasing NFT collections. If you think you’d like to learn more about NFTs, check this section out. But today, we’re here to learn how to research crypto projects, and, in this case, their NFT collections.

So, when you find out about a project and its NFT collection, in order to conduct a proper inspection of it, these are the aspects that require attention.

First of all, take a look at what is the blockchain network that the NFT collection is released on. A well-established, and trustworthy blockchain is the first green flag. It also allows you to evaluate whether the project will potentially face scaling, security, and similar issues.

How to research crypto: NFT research.

Other aspects include the people behind the project, whether they are industry-insiders, and not some inexperienced strangers. Then, evaluating the strength of the community is important. How many people engage with the project’s communication? How buzzing the atmosphere is? The more people, the more accountability the project developers hold.

Besides that, just like with crypto projects in general, it’s important to evaluate the collection’s market potential. Does it have any perks and benefits that other collections don’t offer? Is it a unique project or just a cheap attempt at cashing out at the expense of the uninformed beginners?

How to Research Crypto?

As you can see, there are many different approaches and angles to researching crypto. But, separately, they present only a partial look at a particular crypto project and how solid it really is.

Therefore, let’s see how to conduct proper research that allows you to evaluate the crypto project as a whole. Because it’s easy to tell people to DYOR - Do Your Own Research, and it’s way more difficult to present a coherent system of how that’s actually done. But, that’s what I’m here for.

How to research crypto: DYOR.

So, let’s say a new crypto project pops up in your newsfeed. It looks promising, revolutionary even. The temptation to invest in it is real. But… Is it legit? Time to do some research.

What’s the first step? Going on the project’s website, seeing if it looks reliable, well thought-through and not shady? Wrong. That’s what many users do, and scammers are very much aware of that. Sometimes they create websites that look more legit and trustworthy than those of real, value-creation-oriented companies.

Step 1: Check Out Telegram and Reddit

The first step, instead of going on the company’s website, is to go and check out Telegram and Reddit. These places play the role of crypto research sites, since this is where the under-the-hood talk takes place.

Whether it’s the official project’s Telegram channel, or just people discussing it on a tech-related forum, this is precisely where you could find the first signals that the project is, indeed, legit.

How to research crypto: Social signals.

The term “social signals” is something that’s important to keep in mind while researching crypto. It refers to various indicators that let people know whether a project is actually talked about. Social signals represent the prevailing market sentiment, public opinion and feelings surrounding the particular crypto project.

If you can’t find any social signals regarding a crypto project, it’s an indicator that you shouldn’t act in haste when it comes to making a financial decision. But, how does social signal tracking look like?

The good news is that there are platforms, designed specifically for this purpose. One of them is the BitDegree Social Signals & Traffic Tracker. Once you’re on it, you select a crypto project of your choice, and all the most recent social signals-related data is presented to you. You’ll see stuff like stats from Twitter, Reddit, Telegram, trending posts and such data as their website’s traffic.

Keep in mind that many fresh projects may not yet have enough data to be presented by the social signal tracker. But, taking a look at the well-established projects through the tracker can give you an idea of what a healthy and trustworthy crypto project looks like.

Okay, so, what do we do when a project is so young and fresh that the social signal tracker is not enough for us to evaluate its potential? We get ready to embark on the research journey. And the first stop is checking their social media.

Step 2: Check Out Twitter

I’ve already mentioned the importance of checking out Telegram and Reddit, as the primary sources of critically-evaluated information regarding particular crypto projects.

How to research crypto: Twitter.

Then, it’s time for Twitter. After all, this is where everything happens. Yet, if you only take Twitter into consideration, you could easily miss out on serious, technical projects. Many of them don’t have a huge following, or overly-active social media presence.

On the flip side, many new low-volume projects overemphasize the importance of their Twitter performance, and their self-promo content may flood your newsfeed. Therefore, it’s important to keep in mind that just because a project knows how to build a Twitter following by posting nice pieces of content, doesn’t necessarily mean that this project is a valid one.

Step 3: Analyze the Whitepaper and Funding

Now, having established that a project is being discussed in various forums, and has a valid Twitter presence, it’s less risky to go to their website.

And that’s where you’ll most likely find two key ingredients that will allow you to continue with your research. The first one is the company’s whitepaper.

A whitepaper is a document that emphasizes the technical side of the project, its features, goals, and potential. These documents are usually written by the core members of the project’s team, and they can reveal a lot about how serious it is. In this context, whitepapers are like some kind of crypto research reports.

How to research crypto: Whitepaper.

A great example is the famous Bitcoin whitepaper. Written in 2008 by the enigmatic Satoshi Nakamoto, and titled “Bitcoin: A Peer-to-Peer Electronic Cash System”, this document presented an idea which, eventually, became the foundation for the entire DeFi system.

Those who’ve read it, and realized its potential, were the ones who didn’t hesitate to get themselves enough Bitcoin when its price was still in the cents.

Apart from the technical details, whitepapers allow users to accurately evaluate the product’s use case, and how realistic it is to expect a demand for it. This allows users to get the answers to the previously mentioned big questions of “why?” and “how?” is this project being developed? If the answers don’t satisfy you, it’s a clear indicator that the project is probably not worth your attention.

The second ingredient is funding.

Usually, you’ll be able to find this information on the project’s website, in the “funding” section. There, you’ll be able to see what investors and financial backers have already shown their belief in the project. And, of course, if you find prominent names among them, it’s a green flag.

Wrapping Up

This brings us to the end of this section. I hope that, by now, it has become clearer how to research crypto. It’s a vital part of being successful in this field. Therefore, it’s essential that traders, especially beginners, know where to start, and avoid falling victim to scammers & zero-value projects.

Bitcoin, <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum, and many others, mitigates the risk that comes from tying your financial well-being to one, single cryptocurrency.<\/p>\n<p>Consider a real-life example. Back in 2022, those who had invested the majority of their savings into the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//ftx-token-ftt-price/">FTX token<\/strong><\/a> went through a rather harsh life lesson. As the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//news//sam-bankman-frieds-ftx-files-for-chapter-11-bankruptcy/">news broke out about FTX<\/strong><\/a>, the crypto exchange platform, having financial problems, <strong>the exchange’s native token took a nosedive, and never recovered<\/strong>.<\/p>\n<p>On November 8, 2022, the FTX Token was still being sold for over $22. Two days later, its price was just a little bit over $2.<\/p>\n<p>So, people who had unreasonable amounts of money invested in this one particular token, saw a tenfold reduction in their portfolio’s size. However, those who had invested in the FTX Token, but it was only a part of their diversified portfolio, didn’t face the end of their careers as crypto investors.<\/p>\n<p>This story perfectly encapsulates that the primary purpose of portfolio diversification is to mitigate risks that, unfortunately, are all over the place when it comes to crypto.<\/p>\n<p>So, having said that, I could safely state that the <strong>portfolio diversification definition includes neutralizing the threats<\/strong> that come from the fact that the cryptocurrency market is so volatile and unpredictable.<\/p>\n<p>Of course, portfolio diversification is not a solution to all the crypto world’s problems. Sometimes, even the most sophisticated diversification solutions couldn’t help the investors avoid losses.<\/p>\n<p>Sometimes, the entire industry will just take a hit, and every coin will turn red. But, even in cases like this, a <strong>diversified portfolio provides more stability and less risk<\/strong> than going all in on a single cryptocurrency.<\/p>\n<p>Okay, having said that, we can move on from the theory, and get more practical. Let’s take a look at actual ways of how portfolio diversification can be done. Let’s consider <strong>5 portfolio diversification techniques<\/strong>.<\/p>\n<h2>Crypto Portfolio Diversification Techniques<\/h2>\n<p>When it comes to \"<em>not putting all your eggs in one basket<\/em>,\" there are numerous ways of doing that. The same applies to crypto portfolio diversification techniques. Despite their differences, these techniques help traders achieve a balanced allocation of their assets, and reduce the risk that’s inherent in crypto.<\/p>\n<h3>Crypto Asset Allocation<\/h3>\n<p>The first one is the most self-explanatory. It’s a technique of allocating assets by simply doing exactly that - <strong>allocating your crypto assets<\/strong>. Instead of one cryptocurrency, you choose several. You select the coins of your choice, based on their <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-market-capitalization-market-cap-mcap/">market capitalization<\/strong><\/a>, price, community, the coin’s potential, and other similar, equally- important factors.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Crypto asset allocation.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-02.jpg/" alt=\"Portfolio diversification definition: Crypto asset allocation.\" width=\"1000\" height=\"1090\"><\/p>\n<p>Of course, many would agree that the safest way is to invest in the industry’s most-established cryptos, such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-bitcoin/">Bitcoin or <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">Ethereum. Investing in both of them, instead of a single one, would be a step toward the direction of portfolio diversification.<\/p>\n<p>Yet, in addition to that, <strong>traders consider investing in other, less-established coins<\/strong>. These coins are cheaper, probably more volatile, and they have a smaller market cap.<\/p>\n<p>Yet they’ve got something else - <strong>growth potential<\/strong>. By diversifying your portfolio and allocating a portion of your funds to coins like this, you expect higher returns, and, while having part of your money invested in the industry’s giants, you’d end up balancing the risk that comes from investing in smaller coins.<\/p>\n<p>This technique is often followed by <strong>the 80\/20 rule<\/strong>. It simply means that 80% of your investments should be aimed at large-cap coins, while the remaining 20% at mid & low-cap coins. By allocating such percentages, traders minimize the risk, but continue taking chances to see those smaller coins shoot into the sky.<\/p>\n<h3>Sector Diversification<\/h3>\n<p>The second technique is known as <strong>Sector Diversification<\/strong>. As its name suggests, it involves investing your crypto in different sectors. So, instead of simply investing into coins, based on their price and market cap, you get more specific.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Sector diversification.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-03.jpg/" alt=\"Portfolio diversification definition: Sector diversification.\" width=\"1000\" height=\"507\"><\/p>\n<p>For example, in addition to the large-cap coins, you invest into <strong>stablecoins, privacy coins, exchange tokens, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFTs, or in the DeFi sector<\/strong> <strong>as such<\/strong>, by, for example, becoming a staker.<\/p>\n<p>Such a technique allows investors to further reduce the risk that comes with crypto investing. For example, if the NFT market would suddenly freeze, and people would lose interest in acquiring new NFTs, those traders who diversified their portfolios among different sectors would avoid a crisis.<\/p>\n<h3>Geographical Diversification<\/h3>\n<p>Up next, we’ve got <strong>Geographical Diversification<\/strong>.  Once again, the name says it all. This technique is all about taking into account one more factor: <em>which region does the coin or token originate from<\/em>. Despite crypto’s global nature, <strong>each coin is issued in a different country<\/strong>, which means that the coin’s issuer is subject to their country’s national legislation.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Geographical diversification.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-04.jpg/" alt=\"Portfolio diversification definition: Geographical diversification.\" width=\"1000\" height=\"605\"><\/p>\n<p>So, imagine you invest into a crypto of your choice. It looks promising, with high potential, and it seems that there’s not much to worry about. And then, out of nowhere, news broke out that the government has banned crypto in a particular country, and so it happened that this coin of your choice was issued exactly there.<\/p>\n<p>Suddenly, regulatory challenges become a strong obstacle that messes up the seemingly apolitical market dynamics. Therefore, a considerate approach, and the evaluation of the geographical aspect while choosing where to invest are what make the geographical diversification technique useful.<\/p>\n<h3>Investment Style Diversification<\/h3>\n<p>Moving on, let’s talk about the <strong>Investment Style Diversification<\/strong>. This technique is a bit more advanced, since it requires traders to understand the differences between different investment styles.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Investment style diversification.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-05.jpg/" alt=\"Portfolio diversification definition: Investment style diversification.\" width=\"1000\" height=\"734\"><\/p>\n<p>For example, traders can allocate part of their investments into assets based on their current value, and the other part into assets based on their growth potential, while always actively participating in the so-called <strong>Momentum Investing<\/strong>. This means that they have to constantly be <strong>on the hunt for signals<\/strong> that could help identify which assets may go through a sudden <strong>upward price momentum<\/strong>.<\/p>\n<p>Others may simply not have time for this. Therefore, they could include <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-hodl/">HODLing in their investment style mix. Simply obtaining and holding particular assets with the hopes that it will pay off in the long run, while continuously obtaining other assets based on their value, growth, and so on.<\/p>\n<h3>Asset Allocation into Stablecoins<\/h3>\n<p>Last, but not least, we’ve got the most traditional technique of portfolio diversification. This means that it involves the <strong>active allocation of your assets into coins that are connected to traditional fiat currencies<\/strong>. I’m talking about stablecoins. This technique allows traders to keep a distance from the volatility storms that are always present in the crypto market.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Stablecoins.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-06.jpg/" alt=\"Portfolio diversification definition: Stablecoins.\" width=\"1000\" height=\"556\"><\/p>\n<p>A trader that invests in stablecoins does not expect them to generate a return, because, obviously, <strong>stablecoins have a fixed price<\/strong>. Yet, owning stablecoins creates an opportunity to quickly jump into the crypto market whenever a great opportunity presents itself.<\/p>\n<p>This technique allows traders to <strong>save time<\/strong>, since swapping stablecoins for other cryptocurrencies is a faster process than going through the entire procedure of buying them with fiat money.<\/p>\n<p><em>By the way, if you feel like your knowledge about stablecoins could need some upgrading, make sure to check out my channel - there's <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-stablecoins/">a section about this topic<\/strong><\/a>, specifically!<\/em><\/p>\n<h2>Wrapping Up<\/h2>\n<p>Having said that, we arrive at the end of this section. I hope that, by now, you’ve got a better understanding of the portfolio diversification definition, and <strong>why is diversification important in an investment portfolio<\/strong>, to begin with.<\/p>\n<p>As the crypto industry evolves, the ways and techniques of diversifying your assets will, eventually, change as well, but until then, these methods that I’ve presented today, are among the most popular, trusted and practiced in the industry.<\/p>","definition":"Did you know that portfolio diversification is one of the most prominent risk management strategies?","status":"published","meta_title":"Portfolio Diversification Definition: Why is It Important?","meta_description":"Here, you'll find out the portfolio diversification definition, why is diversification important in an investment portfolio, and much more!","meta_keywords":"portfolio diversification definition, 5 portfolio diversification definition, why is diversification important in an investment portfolio, the primary purpose of portfolio diversification is to","modified_content":"<p>In this section, we’re going to look into the <strong>portfolio diversification definition and why is diversification important in an investment portfolio<\/strong>!<\/p>\n<p>Portfolio diversification and its techniques are among the most important skills that every trader should aim to acquire. Crypto trading is almost synonymous with “risky”, and it’s exactly why portfolio diversification is so important. <strong>It reduces the risk<\/strong>.<\/p>\n<p>Despite its obvious importance, portfolio diversification often gets overlooked, especially by beginners. You see, acting cautiously and calculating your moves is not something that goes viral. Therefore, after having spent some time online in crypto spaces, a beginner may reach a conclusion that it’s not that important. And that would be a big mistake!<\/p>\n<p>In this section, we’re going to outline the portfolio diversification definition, take a look at 5 portfolio diversification techniques, and answer the questions of why diversification is important in an investment portfolio. After all, the primary purpose of portfolio diversification is to <strong>make safer, more thoughtful investments, and step up your trading game<\/strong>!<\/p>\n<p><em>Let’s get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"5 Best Crypto Portfolio Diversification Strategies (Animated Explanation)\"\n title=\"5 Best Crypto Portfolio Diversification Strategies (Animated Explanation)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Portfolio Diversification: The Whats, the Whys, and the Hows<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Portfolio Diversification: The Whats, the Whys, and the Hows\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"JdG2mC7uHHQ\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">5 Best Crypto Portfolio Diversification Strategies (Animated Explanation)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/5-best-crypto-portfolio-diversification-strategies-animated-explanation.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/5-best-crypto-portfolio-diversification-strategies-animated-explanation.jpg?tr=w-760 1000w\"\n alt=\"5 Best Crypto Portfolio Diversification Strategies (Animated Explanation)\"\n title=\"5 Best Crypto Portfolio Diversification Strategies (Animated Explanation)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"5 Best Crypto Portfolio Diversification Strategies (Animated Explanation)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>Portfolio Diversification Definition<\/h2>\n<p>Let’s kick this section off by taking a look at the portfolio diversification definition.<\/p>\n<p>At its very core, portfolio diversification is a <strong>risk management strategy<\/strong>. Those who practice this strategy spread investments across a variety of assets, and, by doing so, they reduce the overall risk that comes with investing.<\/p>\n<p>The risk is reduced by <strong>investing in different types of assets<\/strong> <strong>that are not closely related<\/strong>. If one of the investments flop, the others still have the chance to remain afloat, or, even better - generate gains that would counterbalance the losses from the previous, failed investment.<\/p>\n<p>The wisdom of the proverbial saying of \"<em>not putting all your eggs in one basket<\/em>,\" represents the idea behind portfolio diversification perfectly. But here, let’s consider a more contemporary, yet precise example.<\/p>\n<p>Imagine traveling to a foreign country. Now, would you keep all of your essential belongings, such as your passport, credit cards, and cash in one place, like your backpack? In case of it being stolen, you’re about to have a really bad time.<\/p>\n<p>Therefore, the right thing to do here would be to <strong>diversify your traveling portfolio<\/strong>, and spread your valuable belongings across a variety of different places. Such as, your wallet, a fanny pack, or even the safe back at the hotel.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: What is it?\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-01.jpg/" alt=\"Portfolio diversification definition: What is it?\" width=\"1000\" height=\"557\"><\/p>\n<p>Of course, crypto is a relatively new industry, and portfolio diversification in this space looks a little bit different than it does in the traditional sense. Typically, this strategy means <strong>spreading your investments across various asset types<\/strong> such as stocks, bonds, real estate, and cash.<\/p>\n<p>Now, when it comes to crypto, the same principles apply, they just take up a different form. In the crypto space, portfolio diversification is applied by not ignoring the fact that there are many different cryptocurrencies.<\/p>\n<p>Therefore, investing in various coins, such as <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin, <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum, and many others, mitigates the risk that comes from tying your financial well-being to one, single cryptocurrency.<\/p>\n<p>Consider a real-life example. Back in 2022, those who had invested the majority of their savings into the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//cryptocurrency-prices//ftx-token-ftt-price/">FTX token<\/strong><\/a> went through a rather harsh life lesson. As the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//news//sam-bankman-frieds-ftx-files-for-chapter-11-bankruptcy/">news broke out about FTX<\/strong><\/a>, the crypto exchange platform, having financial problems, <strong>the exchange’s native token took a nosedive, and never recovered<\/strong>.<\/p>\n<p>On November 8, 2022, the FTX Token was still being sold for over $22. Two days later, its price was just a little bit over $2.<\/p>\n<p>So, people who had unreasonable amounts of money invested in this one particular token, saw a tenfold reduction in their portfolio’s size. However, those who had invested in the FTX Token, but it was only a part of their diversified portfolio, didn’t face the end of their careers as crypto investors.<\/p>\n<p>This story perfectly encapsulates that the primary purpose of portfolio diversification is to mitigate risks that, unfortunately, are all over the place when it comes to crypto.<\/p>\n<p>So, having said that, I could safely state that the <strong>portfolio diversification definition includes neutralizing the threats<\/strong> that come from the fact that the cryptocurrency market is so volatile and unpredictable.<\/p>\n<p>Of course, portfolio diversification is not a solution to all the crypto world’s problems. Sometimes, even the most sophisticated diversification solutions couldn’t help the investors avoid losses.<\/p>\n<p>Sometimes, the entire industry will just take a hit, and every coin will turn red. But, even in cases like this, a <strong>diversified portfolio provides more stability and less risk<\/strong> than going all in on a single cryptocurrency.<\/p>\n<p>Okay, having said that, we can move on from the theory, and get more practical. Let’s take a look at actual ways of how portfolio diversification can be done. Let’s consider <strong>5 portfolio diversification techniques<\/strong>.<\/p>\n<h2>Crypto Portfolio Diversification Techniques<\/h2>\n<p>When it comes to \"<em>not putting all your eggs in one basket<\/em>,\" there are numerous ways of doing that. The same applies to crypto portfolio diversification techniques. Despite their differences, these techniques help traders achieve a balanced allocation of their assets, and reduce the risk that’s inherent in crypto.<\/p>\n<h3>Crypto Asset Allocation<\/h3>\n<p>The first one is the most self-explanatory. It’s a technique of allocating assets by simply doing exactly that - <strong>allocating your crypto assets<\/strong>. Instead of one cryptocurrency, you choose several. You select the coins of your choice, based on their <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-market-capitalization-market-cap-mcap/">market capitalization<\/strong><\/a>, price, community, the coin’s potential, and other similar, equally- important factors.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Crypto asset allocation.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-02.jpg/" alt=\"Portfolio diversification definition: Crypto asset allocation.\" width=\"1000\" height=\"1090\"><\/p>\n<p>Of course, many would agree that the safest way is to invest in the industry’s most-established cryptos, such as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-a-bitcoin/">Bitcoin or <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-ethereum/">Ethereum. Investing in both of them, instead of a single one, would be a step toward the direction of portfolio diversification.<\/p>\n<p>Yet, in addition to that, <strong>traders consider investing in other, less-established coins<\/strong>. These coins are cheaper, probably more volatile, and they have a smaller market cap.<\/p>\n<p>Yet they’ve got something else - <strong>growth potential<\/strong>. By diversifying your portfolio and allocating a portion of your funds to coins like this, you expect higher returns, and, while having part of your money invested in the industry’s giants, you’d end up balancing the risk that comes from investing in smaller coins.<\/p>\n<p>This technique is often followed by <strong>the 80\/20 rule<\/strong>. It simply means that 80% of your investments should be aimed at large-cap coins, while the remaining 20% at mid & low-cap coins. By allocating such percentages, traders minimize the risk, but continue taking chances to see those smaller coins shoot into the sky.<\/p>\n<h3>Sector Diversification<\/h3>\n<p>The second technique is known as <strong>Sector Diversification<\/strong>. As its name suggests, it involves investing your crypto in different sectors. So, instead of simply investing into coins, based on their price and market cap, you get more specific.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Sector diversification.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-03.jpg/" alt=\"Portfolio diversification definition: Sector diversification.\" width=\"1000\" height=\"507\"><\/p>\n<p>For example, in addition to the large-cap coins, you invest into <strong>stablecoins, privacy coins, exchange tokens, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFTs, or in the DeFi sector<\/strong> <strong>as such<\/strong>, by, for example, becoming a staker.<\/p>\n<p>Such a technique allows investors to further reduce the risk that comes with crypto investing. For example, if the NFT market would suddenly freeze, and people would lose interest in acquiring new NFTs, those traders who diversified their portfolios among different sectors would avoid a crisis.<\/p>\n<h3>Geographical Diversification<\/h3>\n<p>Up next, we’ve got <strong>Geographical Diversification<\/strong>.  Once again, the name says it all. This technique is all about taking into account one more factor: <em>which region does the coin or token originate from<\/em>. Despite crypto’s global nature, <strong>each coin is issued in a different country<\/strong>, which means that the coin’s issuer is subject to their country’s national legislation.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Geographical diversification.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-04.jpg/" alt=\"Portfolio diversification definition: Geographical diversification.\" width=\"1000\" height=\"605\"><\/p>\n<p>So, imagine you invest into a crypto of your choice. It looks promising, with high potential, and it seems that there’s not much to worry about. And then, out of nowhere, news broke out that the government has banned crypto in a particular country, and so it happened that this coin of your choice was issued exactly there.<\/p>\n<p>Suddenly, regulatory challenges become a strong obstacle that messes up the seemingly apolitical market dynamics. Therefore, a considerate approach, and the evaluation of the geographical aspect while choosing where to invest are what make the geographical diversification technique useful.<\/p>\n<h3>Investment Style Diversification<\/h3>\n<p>Moving on, let’s talk about the <strong>Investment Style Diversification<\/strong>. This technique is a bit more advanced, since it requires traders to understand the differences between different investment styles.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Investment style diversification.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-05.jpg/" alt=\"Portfolio diversification definition: Investment style diversification.\" width=\"1000\" height=\"734\"><\/p>\n<p>For example, traders can allocate part of their investments into assets based on their current value, and the other part into assets based on their growth potential, while always actively participating in the so-called <strong>Momentum Investing<\/strong>. This means that they have to constantly be <strong>on the hunt for signals<\/strong> that could help identify which assets may go through a sudden <strong>upward price momentum<\/strong>.<\/p>\n<p>Others may simply not have time for this. Therefore, they could include <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-hodl/">HODLing in their investment style mix. Simply obtaining and holding particular assets with the hopes that it will pay off in the long run, while continuously obtaining other assets based on their value, growth, and so on.<\/p>\n<h3>Asset Allocation into Stablecoins<\/h3>\n<p>Last, but not least, we’ve got the most traditional technique of portfolio diversification. This means that it involves the <strong>active allocation of your assets into coins that are connected to traditional fiat currencies<\/strong>. I’m talking about stablecoins. This technique allows traders to keep a distance from the volatility storms that are always present in the crypto market.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Portfolio diversification definition: Stablecoins.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//images//portfolio-diversification-06.jpg/" alt=\"Portfolio diversification definition: Stablecoins.\" width=\"1000\" height=\"556\"><\/p>\n<p>A trader that invests in stablecoins does not expect them to generate a return, because, obviously, <strong>stablecoins have a fixed price<\/strong>. Yet, owning stablecoins creates an opportunity to quickly jump into the crypto market whenever a great opportunity presents itself.<\/p>\n<p>This technique allows traders to <strong>save time<\/strong>, since swapping stablecoins for other cryptocurrencies is a faster process than going through the entire procedure of buying them with fiat money.<\/p>\n<p><em>By the way, if you feel like your knowledge about stablecoins could need some upgrading, make sure to check out my channel - there's <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-stablecoins/">a section about this topic<\/strong><\/a>, specifically!<\/em><\/p>\n<h2>Wrapping Up<\/h2>\n<p>Having said that, we arrive at the end of this section. I hope that, by now, you’ve got a better understanding of the portfolio diversification definition, and <strong>why is diversification important in an investment portfolio<\/strong>, to begin with.<\/p>\n<p>As the crypto industry evolves, the ways and techniques of diversifying your assets will, eventually, change as well, but until then, these methods that I’ve presented today, are among the most popular, trusted and practiced in the industry.<\/p>","youtube_video":{"id":86,"channel_id":1,"sort":26,"video_title":"5 Best Crypto Portfolio Diversification Strategies (Animated Explanation)","description":"What\u2019s the crypto portfolio diversification definition? Why is diversification important in an investment portfolio? What are the top 5 portfolio diversification techniques? These are the questions that I answer in this video.\n\nThe wisdom of the proverbial saying of \"not putting all your eggs in one basket,\" represents the idea behind portfolio diversification perfectly. But, it\u2019s easier said than done.\n\nUnderstanding the core principles of crypto portfolio diversification leads to significant reductions in risks that are associated with crypto trading. Therefore it makes sense to learn it.\n\nDo you have any suggestions, additions or requests? Be sure to let us know in the comment section below!\n\nVideo Time Table:\n\n0:00 Introduction to 5 Best Crypto Portfolio Diversification Strategies\n1:12 Portfolio Diversification Definition\n4:26 Crypto Portfolio Diversification Techniques\n4:44 Crypto Asset Allocation\n5:58 Sector Diversification\n6:35 Geographical Diversification\n7:23 Investment Style Diversification\n8:06 Stablecoins\n8:53 Wrap-up: 5 Best Crypto Portfolio Diversification Strategies\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained \n\n#PortfolioDiversification #CryptoPortfolio #Stablecoin","video_id":"JdG2mC7uHHQ","duration":584,"view_count":160,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/5-best-crypto-portfolio-diversification-strategies-animated-explanation.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-06-20T15:07:24.000000Z","created_at":"2023-06-20T23:00:12.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :prev-section="{"id":482,"chapter_id":8,"order":4,"featured_image_id":3096,"youtube_video_id":83,"author_id":1,"created_at":"2023-05-17T12:01:37.000000Z","updated_at":"2024-01-06T22:32:10.000000Z","slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","content":"<p>In this section, we’re going to learn <strong>how to track new crypto coins, as well as your favorite tokens<\/strong>!<\/p>\n<p>It’s an essential skill that’s second nature to every serious trader. Knowing how volatile the crypto market is, being always on time with the latest developments and updates is of crucial importance. And, as you’ll soon see, <strong>this skill has layers of complexity<\/strong>, and if you want to become a real crypto native, you better read this section till the end!<\/p>\n<p>The question about what metrics should be followed is an open one. Some would suggest one answer, while others would vouch for the other theories. Yet, the best approach is to be aware of all of them, and not ignore those factors that may seem complicated, yet of essential importance.<\/p>\n<p>In this section, I’m going to present to you <strong>what are the best platforms and tools to optimize your crypto-tracking skills<\/strong>. There are plenty of options to choose from, but I’ll concentrate on the most accessible, reliable, and useful ones.<\/p>\n<p><em>Let’s get to that!<\/em><\/p>\n<h2>Coin-Tracking Websites<\/h2>\n<p>The process of tracking cryptocurrencies refers to <strong>consistent monitoring of various metrics of a particular coin<\/strong>. Among such metrics are its price, total crypto <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-market-capitalization-market-cap-mcap/">market cap<\/strong><\/a>, circulating supply, and others.<\/p>\n<p>Staying up to date with all of this relevant data allows traders to make informed decisions about <strong>when it’s the right time to make a move<\/strong>. To buy, sell, hold, or simply ignore the coin.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Buy, sell, hold, or ignore.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-01.jpg/" alt=\"How to track new crypto coins: Buy, sell, hold, or ignore.\" width=\"1000\" height=\"523\" \/><\/p>\n<p>Once users learn how to track crypto in general, the question of ‘<em>how to track new crypto coins<\/em>’ is no longer a difficult task. The same rules apply; therefore, a well-versed crypto trader will always be ahead of the game, since they’ll know when to spot a promising new crypto before other traders do.<\/p>\n<p>The first step is to <strong>find, select, and get familiar with a trustworthy crypto-tracking platform<\/strong>. The available selection is rich and wide, but let’s concentrate on popular, free, and well-trusted crypto-tracking websites.<\/p>\n<p>Among the most prominent and reliable names in the industry, such platforms as <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org///">BitDegree, CoinMarketCap, or CoinGecko<\/strong> should be mentioned.<\/p>\n<p>Let’s take a look at BitDegree.org, which presents itself as a <strong>Web3 Learning Hub<\/strong>, and, essentially, is a universally applicable crypto-tracking platform.<\/p>\n<p>Upon entering the website, you can immediately see that Bitdegree presents <strong>essential data regarding over 21,000 different cryptocurrencies, and almost 1,700 <a href=https://www.bitdegree.org/"//crypto//best-cryptocurrency-exchange/">crypto exchanges<\/a><\/strong>. It’s safe to say that, whatever you’re interested in, you'll most likely find it within the hub, and you’ll be able to begin tracking the crypto of your interest right there, on this platform.<\/p>\n<p>So, the first step is to get familiar with such a platform, and learn where to find all the necessary real-time data, coin metrics, and other vital indexes.<\/p>\n<h2>Crypto Analysis Indicators<\/h2>\n<p>In order to know how to track new crypto coins, it’s also unavoidable to rely on <strong>crypto analysis indicators<\/strong>. Let’s define them real quick.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Crypto analysis indicators.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-02.jpg/" alt=\"How to track new crypto coins: Crypto analysis indicators.\" width=\"1000\" height=\"604\" \/><\/p>\n<p>Crypto analysis indicators are convenient tools that <strong>help crypto traders and investors understand, follow, and, in successful cases, predict the right time to make a financial decision<\/strong> concerning a new coin.<\/p>\n<p>In the majority of cases, these tools are <strong>mathematical formulas of sorts<\/strong>, that allow analysts to understand in what state the cryptocurrency market, a particular crypto asset, trading activity and other elements are.<\/p>\n<p>It’s simple. A pro chef knows their recipes and ingredients. <strong>A pro tracker knows their analysis indicators<\/strong>. Though, one thing is to understand them, while another is to understand what role they play in the crypto tracking process and which ones are the ones to keep your eyes on. Besides that, you must be able to read them not only from the tokenomics angle, but from a <strong>trader’s perspective<\/strong> as well.<\/p>\n<p><em>So, what kind of crypto analysis indicators there are?<\/em><\/p>\n<h3>Market Capitalization<\/h3>\n<p>First, among the most important ones, you’ll find “<strong>market capitalization<\/strong>”, or, more commonly, “<strong>market cap<\/strong>.” So, what is market cap in crypto, and how does market cap affect crypto price?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Market capitalization.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-03.jpg/" alt=\"How to track new crypto coins: Market capitalization.\" width=\"1000\" height=\"544\" \/><\/p>\n<p>Market cap is used to measure <strong>the total value of a cryptocurrency<\/strong>. Therefore, it can be referred to as the <strong>total crypto market cap<\/strong> as well. It is calculated by multiplying the current market price of a crypto asset by the total number of coins in circulation - <strong>the circulating supply<\/strong>. The more coins in circulation, and the higher their price, the bigger its market cap gets.<\/p>\n<p>Then, there’s also the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-fully-diluted-market-cap/">fully-diluted market cap<\/strong><\/a> in crypto, as well. This is calculated by taking the current price of the asset, and multiplying it by all of the existing coins, including those that are currently not in circulation. The two metrics are different, but I’m getting a bit too technical here - <em>let’s get back to the point<\/em>.<\/p>\n<p>Thanks to the total crypto market cap indicator, traders can easily <strong>assess the overall value and size of a crypto project<\/strong>. Just by taking a look at the top cryptocurrencies, you can immediately tell that the most widely adopted coins have huge market caps, while the lesser-known ones have significantly lower numbers associated with them. It’s a quick and convenient way of indicating whether a coin is a big player in the crypto game.<\/p>\n<h3>Circulating Supply, Total Supply, and Max Supply<\/h3>\n<p>Moving on, let’s take a look at “<strong>Circulating Supply<\/strong>.” It refers to the number of coins of a particular cryptocurrency that are <strong>currently available and actively traded in the market<\/strong>. The keyword here is “<strong>currently<\/strong>.” This means that if some tokens were burned, destroyed, or put in <a href=https://www.bitdegree.org/"//crypto//cold-wallet/">cold wallets<\/strong><\/a>, they are not included in the “circulating supply” metric.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Circulating supply.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-04.jpg/" alt=\"How to track new crypto coins: Circulating supply.\" width=\"1000\" height=\"570\" \/><\/p>\n<p>This indicator is useful to traders because it allows them to <strong>measure the potential growth of a particular coin<\/strong>. They can assess whether many more coins are about to be released into circulation, which would potentially affect the crypto asset’s value. This could be an issue both for cryptos with the lowest supply, as well as those that have large supply caps, too.<\/p>\n<p>Now, if you were to include all of the coins of a particular cryptocurrency, even those that are not currently in circulation, you would get something that’s called “<strong>Total Supply<\/strong>.”<\/p>\n<p>As I’ve mentioned earlier, this refers to the <strong>total number of coins or tokens that have been created for a particular cryptocurrency<\/strong>. Many coins are being <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-mining/">mined on a daily basis, which means that with every passing day, the total supply increases. Many coins have a limit on how many of them can be created. So, when you take into account the <strong>total amount of coins that will eventually be created<\/strong>, you get yet another indicator - “<strong>Max Supply<\/strong>.”<\/p>\n<p>Here’s a practical illustration. <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin is a well-known example of a crypto asset with a <strong>limited max supply of 21 million coins<\/strong>. This means that once the last Bitcoin is mined, not a single additional Bitcoin will ever be added to the coin’s circulation. This was carefully implemented into the Bitcoin architecture with the idea that such limitations would help maintain the currency’s scarcity and help Bitcoin avoid inflation over time.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Crypto market.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-05.jpg/" alt=\"How to track new crypto coins: Crypto market.\" width=\"1000\" height=\"599\" \/><\/p>\n<p>But then, on the other hand, we’ve got <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum, which has <strong>no fixed maximum supply limit<\/strong>. This means that newly-minted Ethereum will be <strong>forever added to the circulation<\/strong>. The logic behind such a structure seeks to ensure a constant flow of the cryptocurrency into the market, thus keeping the market participants busy, and motivated.<\/p>\n<p>Obviously, this creates the <strong>risk of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-inflation/">inflation. To combat it, the minds behind Ethereum have made sure that the issuance of new Ethereum coins would decrease over time.<\/p>\n<p>Investors can try and predict what kind of effect on the coin’s value this will have in the long run, and can choose whether coins with a limited max supply, or without it, are a better call.<\/p>\n<h3>ATH & ATL<\/h3>\n<p>Now, let’s talk about the “<strong>ATH<\/strong>” and “<strong>ATL<\/strong>”, or “<strong>All-Time High<\/strong>” and “<strong>All-Time Low<\/strong>.” Thankfully, the names here are pretty self-explanatory, since they refer to the all-time high and all-time low prices of a particular cryptocurrency.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: ATH \/ ATL.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-06.jpg/" alt=\"How to track new crypto coins: ATH \/ ATL.\" width=\"1000\" height=\"508\" \/><\/p>\n<p><strong>Again, let’s look at Bitcoin to illustrate it<\/strong>. On April 14, 2021, Bitcoin reached its All-Time High of <strong>$64,863.10<\/strong>. Bitcoin has yet to reach such heights again; therefore, this particular price is known as the Bitcoin ATH. But, it might change in the future.<\/p>\n<p>An all-time low is the exact opposite. <em>And when was Bitcoin the cheapest?<\/em> Of course, just after its inception, back in 2009. When it was just created, Bitcoin was being traded for <strong>$0.01<\/strong>. Its value has never dropped lower; therefore, <strong>Bitcoin’s all-time low is $0.01<\/strong>. Every cryptocurrency has its own ATH and ATL.<\/p>\n<p>By taking a single glance at a particular coin’s ATH & ATL, and comparing them to its current price, even the very crypto beginners immediately tell <strong>in what state the currency is<\/strong>. And, by doing so, they can easily understand whether a coin has gone downhill over time, or increased in value.<\/p>\n<h3>TVL<\/h3>\n<p>There are many abbreviations in the land of crypto, and TVL is yet another of significant importance. TVL stands for \"<strong>Total Value Locked<\/strong>,\" and it’s used to measure the total value of assets that are <strong>currently locked in <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-defi/">DeFi protocols<\/a><\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: TVL.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-07.jpg/" alt=\"How to track new crypto coins: TVL.\" width=\"1000\" height=\"586\" \/><\/p>\n<p>This translates to various amounts of crypto being taken away from circulation by being, for example, staked.<\/p>\n<p><em>Staking asks for another section of its own, but, the good news is that <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-staking-in-crypto/">there is one<\/strong><\/a>! So be sure to check it out if you feel like refreshing your knowledge wouldn’t hurt!<\/em><\/p>\n<p>Okay, so back to TVL. As the name of the indicator suggests, it talks about <strong>money that’s locked away, and is not in circulation<\/strong>.<\/p>\n<p>A higher TVL indicates that traders are prone to trusting various DeFi protocols and locking assets into them. A lower TVL indicates that particular DeFi projects fail to boost confidence, and attract users to their platform.<\/p>\n<h2>Coins’ Smart Contracts<\/h2>\n<p>So, the aforementioned crypto analysis indicators are fundamental to every informed financial decision. Wherever something important happens in a life of a cryptocurrency, those numbers will immediately reflect how grave these changes were. <em>But, there’s more.<\/em><\/p>\n<p>In order to gain insight into a particular cryptocurrency, traders also inspect the <strong>smart contract<\/strong> upon which this coin is built.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Smart contract.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-08.jpg/" alt=\"How to track new crypto coins: Smart contract.\" width=\"1000\" height=\"576\" \/><\/p>\n<p>If you feel like your knowledge about smart contracts needs some revisiting, be sure to check a separate section <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">dedicated to this topic<\/strong><\/a> <strong>in my Crypto 101 Handbook<\/strong>.<\/p>\n<p>However, the main thing you have to note is that <strong>smart contracts are built to be transparent<\/strong>. This means that once their code is written, and deployed on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-blockchain/">blockchain - it’s there to stay, so, no one’s gonna alter or tamper with it. Access to it allows traders to make more informed guesses about how the coin may perform in the near future. This is one of the tricks of knowing how to track new crypto coins.<\/p>\n<p>Here’s a practical example. Smart contract data allows traders to <strong>see and evaluate the rate at which new coins are created, how fast they are distributed, what their circulation looks like now, and what it will look like in the future<\/strong>. Taking into account how supply and demand crypto laws affect coins’ prices, this info could become a life-saver for an informed trader.<\/p>\n<p><em>Okay, so… Where can you access such information?<\/em><\/p>\n<h2>Blockchain Explorers<\/h2>\n<p>The good news is that each network has something known as a ‘<strong>blockchain explorer<\/strong>.’ It’s where you want to go if you’re interested in the nitty-gritty of these coins, of what’s actually going on under the hood.<\/p>\n<p>People use blockchain explorers to find such data as <strong>transaction details & addresses, and to see what the overall network’s health<\/strong> <strong>looks like<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Blockchain explorer.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-09.jpg/" alt=\"How to track new crypto coins: Blockchain explorer.\" width=\"1000\" height=\"503\" \/><\/p>\n<p>Consider <strong>Blockchain.com<\/strong>. As the domain name suggests, it’s about <strong>the Blockchain<\/strong>, the one that started it all. It’s a leading blockchain explorer for the <a href=https://www.bitdegree.org/"//cryptocurrency-prices//bitcoin-btc-price/">Bitcoin network. Users who are eager to learn real-time data about Bitcoin go here. All the essential info, such as network activity, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-hash/">hash rate<\/strong><\/a>, price chart, and everything else, is right there.<\/p>\n<p>Another example is <strong>Etherscan<\/strong>. As the name suggests, this one’s built for <a href=https://www.bitdegree.org/"//cryptocurrency-prices//ethereum-eth-price/">Ethereum. But, Ethereum is a blockchain, which allows other projects to be built upon it. Therefore, many new crypto coins appear on the Ethereum network. Using Etherscan allows you to not only track Ethereum blockchain-related data, but also that of the <strong>projects built on this network<\/strong>, as well.<\/p>\n<p>Once you've found the token you want to track, simply <strong>paste its address into Etherscan to access more details<\/strong>, such as the number of on-chain token holders. This will provide you with insights into how the coin’s actually doing.<\/p>\n<p>As you can see, blockchain explorers can be of critical importance when it comes to knowing how to track new crypto coins, and observe their tokenomics, and how their supply chain in crypto works, in general.  Just remember - <strong>different blockchains have different explorers that are used to track their activities<\/strong>.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>So, this brings us to the end of the section. I’ve presented to you the basic, and the more advanced ways of how to track new crypto coins, what indexes and indicators to follow, and how important they are. Knowing this will truly step up your crypto-tracking skills, and, hopefully, allow you to continue <strong>growing as an informed trader<\/strong>.<\/p>","definition":"Did you know that using reputable coin-tracking websites and blockchain explorers, keeping an eye on crypto analysis indicators, and analyzing smart contracts are all necessary for thoroughly tracking crypto assets?","status":"published","meta_title":"Keep Up With the Market: How to Track New Crypto Coins?","meta_description":"If you're curious about how to track new crypto coins & tokens, you're in luck! Here, you'll find everything you need to know about that!","meta_keywords":"how to track new crypto coins, what is market cap in crypto, total crypto market cap, how does market cap affect crypto price, supply chain crypto, supply and demand crypto, crypto with lowest supply, fully diluted market cap crypto","modified_content":"<p>In this section, we’re going to learn <strong>how to track new crypto coins, as well as your favorite tokens<\/strong>!<\/p>\n<p>It’s an essential skill that’s second nature to every serious trader. Knowing how volatile the crypto market is, being always on time with the latest developments and updates is of crucial importance. And, as you’ll soon see, <strong>this skill has layers of complexity<\/strong>, and if you want to become a real crypto native, you better read this section till the end!<\/p>\n<p>The question about what metrics should be followed is an open one. Some would suggest one answer, while others would vouch for the other theories. Yet, the best approach is to be aware of all of them, and not ignore those factors that may seem complicated, yet of essential importance.<\/p>\n<p>In this section, I’m going to present to you <strong>what are the best platforms and tools to optimize your crypto-tracking skills<\/strong>. There are plenty of options to choose from, but I’ll concentrate on the most accessible, reliable, and useful ones.<\/p>\n<p><em>Let’s get to that!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"How to Track Cryptocurrencies? (3 BEST Tracking Platforms Revealed)\"\n title=\"How to Track Cryptocurrencies? (3 BEST Tracking Platforms Revealed)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Crypto Tracking: How to Track Your Favorite Coins & Tokens?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Crypto Tracking: How to Track Your Favorite Coins & Tokens?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"hE6UbIC3kXY\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">How to Track Cryptocurrencies? (3 BEST Tracking Platforms Revealed)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-to-track-cryptocurrencies-3-best-tracking-platforms-revealed.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-to-track-cryptocurrencies-3-best-tracking-platforms-revealed.jpg?tr=w-760 1000w\"\n alt=\"How to Track Cryptocurrencies? (3 BEST Tracking Platforms Revealed)\"\n title=\"How to Track Cryptocurrencies? (3 BEST Tracking Platforms Revealed)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"How to Track Cryptocurrencies? (3 BEST Tracking Platforms Revealed)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>Coin-Tracking Websites<\/h2>\n<p>The process of tracking cryptocurrencies refers to <strong>consistent monitoring of various metrics of a particular coin<\/strong>. Among such metrics are its price, total crypto <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-market-capitalization-market-cap-mcap/">market cap<\/strong><\/a>, circulating supply, and others.<\/p>\n<p>Staying up to date with all of this relevant data allows traders to make informed decisions about <strong>when it’s the right time to make a move<\/strong>. To buy, sell, hold, or simply ignore the coin.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Buy, sell, hold, or ignore.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-01.jpg/" alt=\"How to track new crypto coins: Buy, sell, hold, or ignore.\" width=\"1000\" height=\"523\" \/><\/p>\n<p>Once users learn how to track crypto in general, the question of ‘<em>how to track new crypto coins<\/em>’ is no longer a difficult task. The same rules apply; therefore, a well-versed crypto trader will always be ahead of the game, since they’ll know when to spot a promising new crypto before other traders do.<\/p>\n<p>The first step is to <strong>find, select, and get familiar with a trustworthy crypto-tracking platform<\/strong>. The available selection is rich and wide, but let’s concentrate on popular, free, and well-trusted crypto-tracking websites.<\/p>\n<p>Among the most prominent and reliable names in the industry, such platforms as <strong><a href=https://www.bitdegree.org/"https:////www.bitdegree.org///">BitDegree, CoinMarketCap, or CoinGecko<\/strong> should be mentioned.<\/p>\n<p>Let’s take a look at BitDegree.org, which presents itself as a <strong>Web3 Learning Hub<\/strong>, and, essentially, is a universally applicable crypto-tracking platform.<\/p>\n<p>Upon entering the website, you can immediately see that Bitdegree presents <strong>essential data regarding over 21,000 different cryptocurrencies, and almost 1,700 <a href=https://www.bitdegree.org/"//crypto//best-cryptocurrency-exchange/">crypto exchanges<\/a><\/strong>. It’s safe to say that, whatever you’re interested in, you'll most likely find it within the hub, and you’ll be able to begin tracking the crypto of your interest right there, on this platform.<\/p>\n<p>So, the first step is to get familiar with such a platform, and learn where to find all the necessary real-time data, coin metrics, and other vital indexes.<\/p>\n<h2>Crypto Analysis Indicators<\/h2>\n<p>In order to know how to track new crypto coins, it’s also unavoidable to rely on <strong>crypto analysis indicators<\/strong>. Let’s define them real quick.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Crypto analysis indicators.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-02.jpg/" alt=\"How to track new crypto coins: Crypto analysis indicators.\" width=\"1000\" height=\"604\" \/><\/p>\n<p>Crypto analysis indicators are convenient tools that <strong>help crypto traders and investors understand, follow, and, in successful cases, predict the right time to make a financial decision<\/strong> concerning a new coin.<\/p>\n<p>In the majority of cases, these tools are <strong>mathematical formulas of sorts<\/strong>, that allow analysts to understand in what state the cryptocurrency market, a particular crypto asset, trading activity and other elements are.<\/p>\n<p>It’s simple. A pro chef knows their recipes and ingredients. <strong>A pro tracker knows their analysis indicators<\/strong>. Though, one thing is to understand them, while another is to understand what role they play in the crypto tracking process and which ones are the ones to keep your eyes on. Besides that, you must be able to read them not only from the tokenomics angle, but from a <strong>trader’s perspective<\/strong> as well.<\/p>\n<p><em>So, what kind of crypto analysis indicators there are?<\/em><\/p>\n<h3>Market Capitalization<\/h3>\n<p>First, among the most important ones, you’ll find “<strong>market capitalization<\/strong>”, or, more commonly, “<strong>market cap<\/strong>.” So, what is market cap in crypto, and how does market cap affect crypto price?<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Market capitalization.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-03.jpg/" alt=\"How to track new crypto coins: Market capitalization.\" width=\"1000\" height=\"544\" \/><\/p>\n<p>Market cap is used to measure <strong>the total value of a cryptocurrency<\/strong>. Therefore, it can be referred to as the <strong>total crypto market cap<\/strong> as well. It is calculated by multiplying the current market price of a crypto asset by the total number of coins in circulation - <strong>the circulating supply<\/strong>. The more coins in circulation, and the higher their price, the bigger its market cap gets.<\/p>\n<p>Then, there’s also the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-fully-diluted-market-cap/">fully-diluted market cap<\/strong><\/a> in crypto, as well. This is calculated by taking the current price of the asset, and multiplying it by all of the existing coins, including those that are currently not in circulation. The two metrics are different, but I’m getting a bit too technical here - <em>let’s get back to the point<\/em>.<\/p>\n<p>Thanks to the total crypto market cap indicator, traders can easily <strong>assess the overall value and size of a crypto project<\/strong>. Just by taking a look at the top cryptocurrencies, you can immediately tell that the most widely adopted coins have huge market caps, while the lesser-known ones have significantly lower numbers associated with them. It’s a quick and convenient way of indicating whether a coin is a big player in the crypto game.<\/p>\n<h3>Circulating Supply, Total Supply, and Max Supply<\/h3>\n<p>Moving on, let’s take a look at “<strong>Circulating Supply<\/strong>.” It refers to the number of coins of a particular cryptocurrency that are <strong>currently available and actively traded in the market<\/strong>. The keyword here is “<strong>currently<\/strong>.” This means that if some tokens were burned, destroyed, or put in <a href=https://www.bitdegree.org/"//crypto//cold-wallet/">cold wallets<\/strong><\/a>, they are not included in the “circulating supply” metric.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Circulating supply.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-04.jpg/" alt=\"How to track new crypto coins: Circulating supply.\" width=\"1000\" height=\"570\" \/><\/p>\n<p>This indicator is useful to traders because it allows them to <strong>measure the potential growth of a particular coin<\/strong>. They can assess whether many more coins are about to be released into circulation, which would potentially affect the crypto asset’s value. This could be an issue both for cryptos with the lowest supply, as well as those that have large supply caps, too.<\/p>\n<p>Now, if you were to include all of the coins of a particular cryptocurrency, even those that are not currently in circulation, you would get something that’s called “<strong>Total Supply<\/strong>.”<\/p>\n<p>As I’ve mentioned earlier, this refers to the <strong>total number of coins or tokens that have been created for a particular cryptocurrency<\/strong>. Many coins are being <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-mining/">mined on a daily basis, which means that with every passing day, the total supply increases. Many coins have a limit on how many of them can be created. So, when you take into account the <strong>total amount of coins that will eventually be created<\/strong>, you get yet another indicator - “<strong>Max Supply<\/strong>.”<\/p>\n<p>Here’s a practical illustration. <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin is a well-known example of a crypto asset with a <strong>limited max supply of 21 million coins<\/strong>. This means that once the last Bitcoin is mined, not a single additional Bitcoin will ever be added to the coin’s circulation. This was carefully implemented into the Bitcoin architecture with the idea that such limitations would help maintain the currency’s scarcity and help Bitcoin avoid inflation over time.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Crypto market.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-05.jpg/" alt=\"How to track new crypto coins: Crypto market.\" width=\"1000\" height=\"599\" \/><\/p>\n<p>But then, on the other hand, we’ve got <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">Ethereum, which has <strong>no fixed maximum supply limit<\/strong>. This means that newly-minted Ethereum will be <strong>forever added to the circulation<\/strong>. The logic behind such a structure seeks to ensure a constant flow of the cryptocurrency into the market, thus keeping the market participants busy, and motivated.<\/p>\n<p>Obviously, this creates the <strong>risk of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-inflation/">inflation. To combat it, the minds behind Ethereum have made sure that the issuance of new Ethereum coins would decrease over time.<\/p>\n<p>Investors can try and predict what kind of effect on the coin’s value this will have in the long run, and can choose whether coins with a limited max supply, or without it, are a better call.<\/p>\n<h3>ATH & ATL<\/h3>\n<p>Now, let’s talk about the “<strong>ATH<\/strong>” and “<strong>ATL<\/strong>”, or “<strong>All-Time High<\/strong>” and “<strong>All-Time Low<\/strong>.” Thankfully, the names here are pretty self-explanatory, since they refer to the all-time high and all-time low prices of a particular cryptocurrency.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: ATH \/ ATL.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-06.jpg/" alt=\"How to track new crypto coins: ATH \/ ATL.\" width=\"1000\" height=\"508\" \/><\/p>\n<p><strong>Again, let’s look at Bitcoin to illustrate it<\/strong>. On April 14, 2021, Bitcoin reached its All-Time High of <strong>$64,863.10<\/strong>. Bitcoin has yet to reach such heights again; therefore, this particular price is known as the Bitcoin ATH. But, it might change in the future.<\/p>\n<p>An all-time low is the exact opposite. <em>And when was Bitcoin the cheapest?<\/em> Of course, just after its inception, back in 2009. When it was just created, Bitcoin was being traded for <strong>$0.01<\/strong>. Its value has never dropped lower; therefore, <strong>Bitcoin’s all-time low is $0.01<\/strong>. Every cryptocurrency has its own ATH and ATL.<\/p>\n<p>By taking a single glance at a particular coin’s ATH & ATL, and comparing them to its current price, even the very crypto beginners immediately tell <strong>in what state the currency is<\/strong>. And, by doing so, they can easily understand whether a coin has gone downhill over time, or increased in value.<\/p>\n<h3>TVL<\/h3>\n<p>There are many abbreviations in the land of crypto, and TVL is yet another of significant importance. TVL stands for \"<strong>Total Value Locked<\/strong>,\" and it’s used to measure the total value of assets that are <strong>currently locked in <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-defi/">DeFi protocols<\/a><\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: TVL.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-07.jpg/" alt=\"How to track new crypto coins: TVL.\" width=\"1000\" height=\"586\" \/><\/p>\n<p>This translates to various amounts of crypto being taken away from circulation by being, for example, staked.<\/p>\n<p><em>Staking asks for another section of its own, but, the good news is that <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-staking-in-crypto/">there is one<\/strong><\/a>! So be sure to check it out if you feel like refreshing your knowledge wouldn’t hurt!<\/em><\/p>\n<p>Okay, so back to TVL. As the name of the indicator suggests, it talks about <strong>money that’s locked away, and is not in circulation<\/strong>.<\/p>\n<p>A higher TVL indicates that traders are prone to trusting various DeFi protocols and locking assets into them. A lower TVL indicates that particular DeFi projects fail to boost confidence, and attract users to their platform.<\/p>\n<h2>Coins’ Smart Contracts<\/h2>\n<p>So, the aforementioned crypto analysis indicators are fundamental to every informed financial decision. Wherever something important happens in a life of a cryptocurrency, those numbers will immediately reflect how grave these changes were. <em>But, there’s more.<\/em><\/p>\n<p>In order to gain insight into a particular cryptocurrency, traders also inspect the <strong>smart contract<\/strong> upon which this coin is built.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Smart contract.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-08.jpg/" alt=\"How to track new crypto coins: Smart contract.\" width=\"1000\" height=\"576\" \/><\/p>\n<p>If you feel like your knowledge about smart contracts needs some revisiting, be sure to check a separate section <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-smart-contracts/">dedicated to this topic<\/strong><\/a> <strong>in my Crypto 101 Handbook<\/strong>.<\/p>\n<p>However, the main thing you have to note is that <strong>smart contracts are built to be transparent<\/strong>. This means that once their code is written, and deployed on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-blockchain/">blockchain - it’s there to stay, so, no one’s gonna alter or tamper with it. Access to it allows traders to make more informed guesses about how the coin may perform in the near future. This is one of the tricks of knowing how to track new crypto coins.<\/p>\n<p>Here’s a practical example. Smart contract data allows traders to <strong>see and evaluate the rate at which new coins are created, how fast they are distributed, what their circulation looks like now, and what it will look like in the future<\/strong>. Taking into account how supply and demand crypto laws affect coins’ prices, this info could become a life-saver for an informed trader.<\/p>\n<p><em>Okay, so… Where can you access such information?<\/em><\/p>\n<h2>Blockchain Explorers<\/h2>\n<p>The good news is that each network has something known as a ‘<strong>blockchain explorer<\/strong>.’ It’s where you want to go if you’re interested in the nitty-gritty of these coins, of what’s actually going on under the hood.<\/p>\n<p>People use blockchain explorers to find such data as <strong>transaction details & addresses, and to see what the overall network’s health<\/strong> <strong>looks like<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to track new crypto coins: Blockchain explorer.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-track-new-crypto-coins-09.jpg/" alt=\"How to track new crypto coins: Blockchain explorer.\" width=\"1000\" height=\"503\" \/><\/p>\n<p>Consider <strong>Blockchain.com<\/strong>. As the domain name suggests, it’s about <strong>the Blockchain<\/strong>, the one that started it all. It’s a leading blockchain explorer for the <a href=https://www.bitdegree.org/"//cryptocurrency-prices//bitcoin-btc-price/">Bitcoin network. Users who are eager to learn real-time data about Bitcoin go here. All the essential info, such as network activity, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-hash/">hash rate<\/strong><\/a>, price chart, and everything else, is right there.<\/p>\n<p>Another example is <strong>Etherscan<\/strong>. As the name suggests, this one’s built for <a href=https://www.bitdegree.org/"//cryptocurrency-prices//ethereum-eth-price/">Ethereum. But, Ethereum is a blockchain, which allows other projects to be built upon it. Therefore, many new crypto coins appear on the Ethereum network. Using Etherscan allows you to not only track Ethereum blockchain-related data, but also that of the <strong>projects built on this network<\/strong>, as well.<\/p>\n<p>Once you've found the token you want to track, simply <strong>paste its address into Etherscan to access more details<\/strong>, such as the number of on-chain token holders. This will provide you with insights into how the coin’s actually doing.<\/p>\n<p>As you can see, blockchain explorers can be of critical importance when it comes to knowing how to track new crypto coins, and observe their tokenomics, and how their supply chain in crypto works, in general.  Just remember - <strong>different blockchains have different explorers that are used to track their activities<\/strong>.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>So, this brings us to the end of the section. I’ve presented to you the basic, and the more advanced ways of how to track new crypto coins, what indexes and indicators to follow, and how important they are. Knowing this will truly step up your crypto-tracking skills, and, hopefully, allow you to continue <strong>growing as an informed trader<\/strong>.<\/p>","youtube_video":{"id":83,"channel_id":1,"sort":29,"video_title":"How to Track Cryptocurrencies? (3 BEST Tracking Platforms Revealed)","description":"How to track cryptocurrencies & what are the best tracking tools?\n\nTrading crypto is one thing. Tracking crypto is something else. Because knowing how to get ahead of your fellow traders and be the first one to spot the next big thing is, undoubtedly, quite an advantage. \n\nIn this video, I will present you with what are the metrics, the indexes, and the data that pro crypto trackers are always aware of. You\u2019ll get the opportunity to learn essential indicators, such as market capitalization, TVL, ATH and ATL, and more advanced tools, such as blockchain explorers like Etherscan.\n\nDo you have something that you\u2019d like to add? Make sure to let everyone know by leaving a comment, an insight, or a suggestion in the comment section below!\n\nVideo Time Table:\n\n0:00 Introduction to How to Track Cryptocurrencies\n1:05 Coin-Tracking Platforms\n2:40 Crypto Analysis Indicators\n3:31 Market Capitalization\n4:43 Circulating Supply, Total Supply, Max Supply\n6:52 All-time High (ATH) & All-time Low (ATL)\n8:00 Total Value Locked (TVL)\n8:50 Coins' Smart Contracts\n10:00 Blockchain Explorers\n11:23 Wrap-up: How to Track Cryptocurrencies?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained \n\n#CryptoAnalysis #CryptoTracker #MarketCap","video_id":"hE6UbIC3kXY","duration":720,"view_count":390,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-to-track-cryptocurrencies-3-best-tracking-platforms-revealed.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-06-09T14:38:10.000000Z","created_at":"2023-06-09T23:00:12.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :model="{"id":483,"chapter_id":8,"order":5,"featured_image_id":3097,"youtube_video_id":84,"author_id":1,"created_at":"2023-05-17T12:54:44.000000Z","updated_at":"2023-12-27T19:15:09.000000Z","slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","content":"<p>In this section, we’re going to talk about <strong>how to research crypto<\/strong>!<\/p>\n<p>Crypto is no longer a buzzword. It’s already a household name for <strong>the financial system of the future<\/strong>.  <em>But… <\/em>Getting into crypto didn’t get easier. Matter of fact, it’s probably the opposite, since the number of crypto coins is already in the tens of thousands, and news about new scams comes from every corner.<\/p>\n<p>So, quite naturally, an important question arises: <em>How to research crypto and how not to get tangled up in the maze of new projects, complicated terminology and overwhelming feeling of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-fomo/">FOMO?<\/em> Well, in this section, I will tell you all about it.<\/p>\n<p>In this section, we’re going to look into how to research crypto, what to research when buying crypto, how is this process done correctly, and what to concentrate on while doing your own research.<\/p>\n<p><em>Without further ado, let's get to it!<\/em><\/p>\n<h2>Crypto Research 101<\/h2>\n<p>First of all, ironically enough, even the word ‘<em>research<\/em>’ requires some research. Here’s what I mean.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Research types.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-01.jpg/" alt=\"How to research crypto: Research types.\" width=\"1000\" height=\"487\" \/><\/p>\n<p>Let’s say you’re about to begin researching a new crypto project. <em>Alright, where do you begin?<\/em> These projects often have many layers to them. You can conduct <strong>tokenomics research, airdrop research, DeFi research, NFT research<\/strong>… There are many aspects that require serious evaluation before making a financial decision.<\/p>\n<p>Understandably, this may seem overwhelming. To start making sense of it all, let’s quickly define these different ways of researching crypto.<\/p>\n<h3>Tokenomics Research<\/h3>\n<p>So, what’s ‘<strong>tokenomics research<\/strong>’?<\/p>\n<p>In this context, the term ‘<em>tokenomics<\/em>’ refers to <strong>inspecting the economic principles and the design of cryptocurrencies<\/strong>. Usually, tokenomics research consists of analyzing the coin's key characteristics. These are: supply, distribution, utility, and, in many cases, governance.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Tokenomics research.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-02.jpg/" alt=\"How to research crypto: Tokenomics research.\" width=\"1000\" height=\"553\" \/><\/p>\n<p>If you feel like you need to refresh your knowledge about these key indicators, be sure to <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-track-new-crypto-coins/">check this section<\/strong><\/a>, where I cover and explain these terms in detail!<\/p>\n<p>OK, back to tokenomics research. Analysis of this kind lets users <strong>estimate the functionality of a crypto coin<\/strong>, and whether it’s well thought-through. In many cases, it’s easy to spot red flags immediately. Let’s consider a well-known example.<\/p>\n<p>Tokenomics behind <strong>the infamous<\/strong> <strong>BitConnect scam<\/strong> made it clear that this project was up to no good from its very inception. The project promised high returns to investors, yet they did not disclose how these returns were generated. In addition, the only utility for the token was… Investing in the Bitconnect lending platform.<\/p>\n<p>Quite obviously, such an ordeal sounds dubious, to say the least. And, conducting tokenomics research was enough to avoid falling victim to this scam.<\/p>\n<h3>Airdrop Research<\/h3>\n<p>Moving on, let’s talk about researching <strong>airdrops<\/strong>. Let’s say you stumble upon a promising project, and airdrops are what they’re talking about.<\/p>\n<p>The term itself refers to the <strong>distribution of crypto<\/strong>. The crypto that’s issued by the project you’re interested in. Once again, there is an <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-an-airdrop/">entire section about this topic<\/strong><\/a>, be sure to check it out!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Airdrop.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-03.jpg/" alt=\"How to research crypto: Airdrop.\" width=\"1000\" height=\"563\" \/><\/p>\n<p>So, a project is organizing an airdrop. In order to understand whether it’s a viable move, and not just a cheap PR trick to attract attention, experienced users go and take a look at <strong>how this may affect the coin’s tokenomics, and its role in the DeFi ecosystem<\/strong>.<\/p>\n<p>This means analyzing how the airdrop will affect the coin’s supply, demand, and whether it will not cause a massive drop in its value. Imagine if an airdrop quadrupled the coin’s circulating supply. The particular cryptocurrency would experience major <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-inflation/">inflation in the blink of an eye.<\/p>\n<h3>DeFi Research<\/h3>\n<p>I’ve mentioned that experienced traders take into account the project’s role in the entire DeFi ecosystem. But how do they measure such a criterion? By conducting <strong>DeFi research<\/strong>.<\/p>\n<p>In its very essence, this means <strong>asking the big questions<\/strong>. It means evaluating the role of a particular project in the entire DeFi space. <em>Does the project promise a solution to a problem that hasn’t been solved yet? Does the project offer a real use case?<\/em><\/p>\n<p><em><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Coinye.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-04.jpg/" alt=\"How to research crypto: Coinye.\" width=\"1000\" height=\"578\" \/><\/em><\/p>\n<p>Evaluating crypto projects based on their utility sounds like a no-brainer. Yet, you’d be surprised how <strong>many projects have been created just for the sake of attracting investors' money<\/strong>. And they succeeded just because the creators knew how to cover the uselessness of their project in hip, glittery buzzwords.<\/p>\n<p>Let’s take a look at an example. Back in 2014, a new crypto was being introduced to the market. It was called <strong>Coinye<\/strong>. <em>And yes, it was named after Kanye West<\/em>. Quite obviously, this coin had literally zero utility, and was built entirely to capitalize on the pun. West’s legal team brought this project down very quickly, and the only losers were those who actually invested in it.<\/p>\n<h3>NFT Research<\/h3>\n<p>Many projects attract the public's attention by releasing <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFT collections. If you think you’d like to learn more about NFTs, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-nfts/">check this section out<\/strong><\/a>. But today, we’re here to learn <strong>how to research crypto projects<\/strong>, and, in this case, their NFT collections.<\/p>\n<p>So, when you find out about a project and its NFT collection, in order to conduct a proper inspection of it, these are the aspects that require attention.<\/p>\n<p>First of all, take a look at <strong>what is the blockchain network that the NFT collection is released on<\/strong>. A well-established, and trustworthy blockchain is the first green flag. It also allows you to evaluate whether the project will potentially face scaling, security, and similar issues.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: NFT research.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-05.jpg/" alt=\"How to research crypto: NFT research.\" width=\"1000\" height=\"551\" \/><\/p>\n<p>Other aspects include <strong>the people behind the project<\/strong>, whether they are industry-insiders, and not some inexperienced strangers. Then, evaluating <strong>the strength of the community<\/strong> is important. <em>How many people engage with the project’s communication? How buzzing the atmosphere is?<\/em> The more people, the more accountability the project developers hold.<\/p>\n<p>Besides that, just like with crypto projects in general, it’s important to <strong>evaluate the collection’s market potential<\/strong>. <em>Does it have any perks and benefits that other collections don’t offer? Is it a unique project or just a cheap attempt at cashing out at the expense of the uninformed beginners?<\/em><\/p>\n<h2>How to Research Crypto?<\/h2>\n<p>As you can see, there are many different approaches and angles to researching crypto. But, separately, they present only a partial look at a particular crypto project and how solid it really is.<\/p>\n<p>Therefore, let’s see <strong>how to conduct proper research that allows you to evaluate the crypto project as a whole<\/strong>. Because it’s easy to tell people to <em>DYOR - Do Your Own Research<\/em>, and it’s way more difficult to present a coherent system of how that’s actually done. But, that’s what I’m here for.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: DYOR.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-06.jpg/" alt=\"How to research crypto: DYOR.\" width=\"1000\" height=\"544\" \/><\/p>\n<p>So, let’s say a new crypto project pops up in your newsfeed. It looks promising, revolutionary even. The temptation to invest in it is real. <em>But… Is it legit?<\/em> Time to do some research.<\/p>\n<p><em>What’s the first step? Going on the project’s website, seeing if it looks reliable, well thought-through and not shady?<\/em> <strong>Wrong<\/strong>. That’s what many users do, and scammers are very much aware of that. Sometimes they create websites that look more legit and trustworthy than those of real, value-creation-oriented companies.<\/p>\n<h3>Step 1: Check Out Telegram and Reddit<\/h3>\n<p>The first step, instead of going on the company’s website, is to go and <strong>check out Telegram and Reddit<\/strong>. These places play the role of crypto research sites, since this is where the under-the-hood talk takes place.<\/p>\n<p>Whether it’s the official project’s Telegram channel, or just people discussing it on a tech-related forum, this is precisely where you could find the first signals that the project is, indeed, legit.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Social signals.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-07.jpg/" alt=\"How to research crypto: Social signals.\" width=\"1000\" height=\"558\" \/><\/p>\n<p>The term “<strong>social signals<\/strong>” is something that’s important to keep in mind while researching crypto. It refers to various indicators that let people know whether a project is actually talked about. Social signals represent the <strong>prevailing market sentiment, public opinion and feelings surrounding the particular crypto project<\/strong>.<\/p>\n<p>If you can’t find any social signals regarding a crypto project, it’s an indicator that you shouldn’t act in haste when it comes to making a financial decision. <em>But, how does social signal tracking look like?<\/em><\/p>\n<p>The good news is that there are platforms, designed specifically for this purpose. One of them is the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org///">BitDegree Social Signals & Traffic Tracker<\/strong><\/a>. Once you’re on it, you select a crypto project of your choice, and all the most recent social signals-related data is presented to you. You’ll see stuff like stats from Twitter, Reddit, Telegram, trending posts and such data as their website’s traffic.<\/p>\n<p>Keep in mind that <strong>many fresh projects may not yet have enough data to be presented by the social signal tracker<\/strong>. But, taking a look at the well-established projects through the tracker can give you an idea of what a healthy and trustworthy crypto project looks like.<\/p>\n<p>Okay, so, what do we do when a project is so young and fresh that the social signal tracker is not enough for us to evaluate its potential? We get ready to embark on the research journey. And the first stop is <strong>checking their social media<\/strong>.<\/p>\n<h3>Step 2: Check Out Twitter<\/h3>\n<p>I’ve already mentioned the importance of checking out Telegram and Reddit, as the primary sources of critically-evaluated information regarding particular crypto projects.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Twitter.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-08.jpg/" alt=\"How to research crypto: Twitter.\" width=\"1000\" height=\"574\" \/><\/p>\n<p><strong>Then, it’s time for Twitter<\/strong>. After all, this is where everything happens. Yet, if you only take Twitter into consideration, you could easily miss out on serious, technical projects. Many of them don’t have a huge following, or overly-active social media presence.<\/p>\n<p>On the flip side, many new low-volume projects overemphasize the importance of their Twitter performance, and their self-promo content may flood your newsfeed. Therefore, it’s important to keep in mind that <strong>just because a project knows how to build a Twitter following by posting nice pieces of content, doesn’t necessarily mean that this project is a valid one<\/strong>.<\/p>\n<h3>Step 3: Analyze the Whitepaper and Funding<\/h3>\n<p>Now, having established that a project is being discussed in various forums, and has a valid Twitter presence, it’s less risky to go to their website.<\/p>\n<p>And that’s where you’ll most likely find two key ingredients that will allow you to continue with your research. The first one is the company’s whitepaper.<\/p>\n<p><strong>A whitepaper is a<\/strong> <strong>document that emphasizes the technical side of the project, its features, goals, and potential<\/strong>. These documents are usually written by the core members of the project’s team, and they can reveal a lot about how serious it is. In this context, whitepapers are like some kind of crypto research reports.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Whitepaper.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-09.jpg/" alt=\"How to research crypto: Whitepaper.\" width=\"1000\" height=\"541\" \/><\/p>\n<p>A great example is the famous <strong>Bitcoin whitepaper<\/strong>. Written in 2008 by the enigmatic Satoshi Nakamoto, and titled “<em>Bitcoin: A Peer-to-Peer Electronic Cash System<\/em>”, this document presented an idea which, eventually, became the foundation for the entire DeFi system.<\/p>\n<p>Those who’ve read it, and realized its potential, were the ones who didn’t hesitate to get themselves enough <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin when its price was still in the cents.<\/p>\n<p>Apart from the technical details, whitepapers allow users to <strong>accurately evaluate the product’s use case<\/strong>, and how realistic it is to expect a demand for it. This allows users to get the answers to the previously mentioned big questions of “<em>why?<\/em>” and “<em>how?<\/em>” is this project being developed? If the answers don’t satisfy you, it’s a clear indicator that the project is probably not worth your attention.<\/p>\n<p>The second ingredient is <strong>funding<\/strong>.<\/p>\n<p>Usually, you’ll be able to find this information on the project’s website, in the “<em>funding<\/em>” section. There, you’ll be able to see <strong>what investors and financial backers have already shown their belief in the project<\/strong>. And, of course, if you find prominent names among them, it’s a green flag.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>This brings us to the end of this section. I hope that, by now, it has become clearer how to research crypto. It’s a vital part of being successful in this field. Therefore, it’s essential that traders, especially beginners, know where to start, and avoid falling victim to scammers & zero-value projects.<\/p>","definition":"Did you know that the first step of researching a crypto project should be checking out Telegram and Reddit, instead of the company's website?","status":"published","meta_title":"How to Research Crypto: A Thorough Guide for Beginners","meta_description":"Are you curious about what to research when buying crypto? Learn all the ins and outs of how to research crypto using this thorough guide.","meta_keywords":"how to research crypto, what to research when buying crypto, crypto research reports, crypto research sites","modified_content":"<p>In this section, we’re going to talk about <strong>how to research crypto<\/strong>!<\/p>\n<p>Crypto is no longer a buzzword. It’s already a household name for <strong>the financial system of the future<\/strong>.  <em>But… <\/em>Getting into crypto didn’t get easier. Matter of fact, it’s probably the opposite, since the number of crypto coins is already in the tens of thousands, and news about new scams comes from every corner.<\/p>\n<p>So, quite naturally, an important question arises: <em>How to research crypto and how not to get tangled up in the maze of new projects, complicated terminology and overwhelming feeling of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-fomo/">FOMO?<\/em> Well, in this section, I will tell you all about it.<\/p>\n<p>In this section, we’re going to look into how to research crypto, what to research when buying crypto, how is this process done correctly, and what to concentrate on while doing your own research.<\/p>\n<p><em>Without further ado, let's get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"Crypto Research Fundamentals: How to DYOR (Animated Explainer)\"\n title=\"Crypto Research Fundamentals: How to DYOR (Animated Explainer)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"dA0lEcFViDc\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">Crypto Research Fundamentals: How to DYOR (Animated Explainer)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/crypto-research-fundamentals-how-to-dyor-animated-explainer.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/crypto-research-fundamentals-how-to-dyor-animated-explainer.jpg?tr=w-760 1000w\"\n alt=\"Crypto Research Fundamentals: How to DYOR (Animated Explainer)\"\n title=\"Crypto Research Fundamentals: How to DYOR (Animated Explainer)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"Crypto Research Fundamentals: How to DYOR (Animated Explainer)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>Crypto Research 101<\/h2>\n<p>First of all, ironically enough, even the word ‘<em>research<\/em>’ requires some research. Here’s what I mean.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Research types.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-01.jpg/" alt=\"How to research crypto: Research types.\" width=\"1000\" height=\"487\" \/><\/p>\n<p>Let’s say you’re about to begin researching a new crypto project. <em>Alright, where do you begin?<\/em> These projects often have many layers to them. You can conduct <strong>tokenomics research, airdrop research, DeFi research, NFT research<\/strong>… There are many aspects that require serious evaluation before making a financial decision.<\/p>\n<p>Understandably, this may seem overwhelming. To start making sense of it all, let’s quickly define these different ways of researching crypto.<\/p>\n<h3>Tokenomics Research<\/h3>\n<p>So, what’s ‘<strong>tokenomics research<\/strong>’?<\/p>\n<p>In this context, the term ‘<em>tokenomics<\/em>’ refers to <strong>inspecting the economic principles and the design of cryptocurrencies<\/strong>. Usually, tokenomics research consists of analyzing the coin's key characteristics. These are: supply, distribution, utility, and, in many cases, governance.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Tokenomics research.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-02.jpg/" alt=\"How to research crypto: Tokenomics research.\" width=\"1000\" height=\"553\" \/><\/p>\n<p>If you feel like you need to refresh your knowledge about these key indicators, be sure to <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-track-new-crypto-coins/">check this section<\/strong><\/a>, where I cover and explain these terms in detail!<\/p>\n<p>OK, back to tokenomics research. Analysis of this kind lets users <strong>estimate the functionality of a crypto coin<\/strong>, and whether it’s well thought-through. In many cases, it’s easy to spot red flags immediately. Let’s consider a well-known example.<\/p>\n<p>Tokenomics behind <strong>the infamous<\/strong> <strong>BitConnect scam<\/strong> made it clear that this project was up to no good from its very inception. The project promised high returns to investors, yet they did not disclose how these returns were generated. In addition, the only utility for the token was… Investing in the Bitconnect lending platform.<\/p>\n<p>Quite obviously, such an ordeal sounds dubious, to say the least. And, conducting tokenomics research was enough to avoid falling victim to this scam.<\/p>\n<h3>Airdrop Research<\/h3>\n<p>Moving on, let’s talk about researching <strong>airdrops<\/strong>. Let’s say you stumble upon a promising project, and airdrops are what they’re talking about.<\/p>\n<p>The term itself refers to the <strong>distribution of crypto<\/strong>. The crypto that’s issued by the project you’re interested in. Once again, there is an <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-is-an-airdrop/">entire section about this topic<\/strong><\/a>, be sure to check it out!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Airdrop.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-03.jpg/" alt=\"How to research crypto: Airdrop.\" width=\"1000\" height=\"563\" \/><\/p>\n<p>So, a project is organizing an airdrop. In order to understand whether it’s a viable move, and not just a cheap PR trick to attract attention, experienced users go and take a look at <strong>how this may affect the coin’s tokenomics, and its role in the DeFi ecosystem<\/strong>.<\/p>\n<p>This means analyzing how the airdrop will affect the coin’s supply, demand, and whether it will not cause a massive drop in its value. Imagine if an airdrop quadrupled the coin’s circulating supply. The particular cryptocurrency would experience major <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-inflation/">inflation in the blink of an eye.<\/p>\n<h3>DeFi Research<\/h3>\n<p>I’ve mentioned that experienced traders take into account the project’s role in the entire DeFi ecosystem. But how do they measure such a criterion? By conducting <strong>DeFi research<\/strong>.<\/p>\n<p>In its very essence, this means <strong>asking the big questions<\/strong>. It means evaluating the role of a particular project in the entire DeFi space. <em>Does the project promise a solution to a problem that hasn’t been solved yet? Does the project offer a real use case?<\/em><\/p>\n<p><em><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Coinye.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-04.jpg/" alt=\"How to research crypto: Coinye.\" width=\"1000\" height=\"578\" \/><\/em><\/p>\n<p>Evaluating crypto projects based on their utility sounds like a no-brainer. Yet, you’d be surprised how <strong>many projects have been created just for the sake of attracting investors' money<\/strong>. And they succeeded just because the creators knew how to cover the uselessness of their project in hip, glittery buzzwords.<\/p>\n<p>Let’s take a look at an example. Back in 2014, a new crypto was being introduced to the market. It was called <strong>Coinye<\/strong>. <em>And yes, it was named after Kanye West<\/em>. Quite obviously, this coin had literally zero utility, and was built entirely to capitalize on the pun. West’s legal team brought this project down very quickly, and the only losers were those who actually invested in it.<\/p>\n<h3>NFT Research<\/h3>\n<p>Many projects attract the public's attention by releasing <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">NFT collections. If you think you’d like to learn more about NFTs, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//what-are-nfts/">check this section out<\/strong><\/a>. But today, we’re here to learn <strong>how to research crypto projects<\/strong>, and, in this case, their NFT collections.<\/p>\n<p>So, when you find out about a project and its NFT collection, in order to conduct a proper inspection of it, these are the aspects that require attention.<\/p>\n<p>First of all, take a look at <strong>what is the blockchain network that the NFT collection is released on<\/strong>. A well-established, and trustworthy blockchain is the first green flag. It also allows you to evaluate whether the project will potentially face scaling, security, and similar issues.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: NFT research.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-05.jpg/" alt=\"How to research crypto: NFT research.\" width=\"1000\" height=\"551\" \/><\/p>\n<p>Other aspects include <strong>the people behind the project<\/strong>, whether they are industry-insiders, and not some inexperienced strangers. Then, evaluating <strong>the strength of the community<\/strong> is important. <em>How many people engage with the project’s communication? How buzzing the atmosphere is?<\/em> The more people, the more accountability the project developers hold.<\/p>\n<p>Besides that, just like with crypto projects in general, it’s important to <strong>evaluate the collection’s market potential<\/strong>. <em>Does it have any perks and benefits that other collections don’t offer? Is it a unique project or just a cheap attempt at cashing out at the expense of the uninformed beginners?<\/em><\/p>\n<h2>How to Research Crypto?<\/h2>\n<p>As you can see, there are many different approaches and angles to researching crypto. But, separately, they present only a partial look at a particular crypto project and how solid it really is.<\/p>\n<p>Therefore, let’s see <strong>how to conduct proper research that allows you to evaluate the crypto project as a whole<\/strong>. Because it’s easy to tell people to <em>DYOR - Do Your Own Research<\/em>, and it’s way more difficult to present a coherent system of how that’s actually done. But, that’s what I’m here for.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: DYOR.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-06.jpg/" alt=\"How to research crypto: DYOR.\" width=\"1000\" height=\"544\" \/><\/p>\n<p>So, let’s say a new crypto project pops up in your newsfeed. It looks promising, revolutionary even. The temptation to invest in it is real. <em>But… Is it legit?<\/em> Time to do some research.<\/p>\n<p><em>What’s the first step? Going on the project’s website, seeing if it looks reliable, well thought-through and not shady?<\/em> <strong>Wrong<\/strong>. That’s what many users do, and scammers are very much aware of that. Sometimes they create websites that look more legit and trustworthy than those of real, value-creation-oriented companies.<\/p>\n<h3>Step 1: Check Out Telegram and Reddit<\/h3>\n<p>The first step, instead of going on the company’s website, is to go and <strong>check out Telegram and Reddit<\/strong>. These places play the role of crypto research sites, since this is where the under-the-hood talk takes place.<\/p>\n<p>Whether it’s the official project’s Telegram channel, or just people discussing it on a tech-related forum, this is precisely where you could find the first signals that the project is, indeed, legit.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Social signals.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-07.jpg/" alt=\"How to research crypto: Social signals.\" width=\"1000\" height=\"558\" \/><\/p>\n<p>The term “<strong>social signals<\/strong>” is something that’s important to keep in mind while researching crypto. It refers to various indicators that let people know whether a project is actually talked about. Social signals represent the <strong>prevailing market sentiment, public opinion and feelings surrounding the particular crypto project<\/strong>.<\/p>\n<p>If you can’t find any social signals regarding a crypto project, it’s an indicator that you shouldn’t act in haste when it comes to making a financial decision. <em>But, how does social signal tracking look like?<\/em><\/p>\n<p>The good news is that there are platforms, designed specifically for this purpose. One of them is the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org///">BitDegree Social Signals & Traffic Tracker<\/strong><\/a>. Once you’re on it, you select a crypto project of your choice, and all the most recent social signals-related data is presented to you. You’ll see stuff like stats from Twitter, Reddit, Telegram, trending posts and such data as their website’s traffic.<\/p>\n<p>Keep in mind that <strong>many fresh projects may not yet have enough data to be presented by the social signal tracker<\/strong>. But, taking a look at the well-established projects through the tracker can give you an idea of what a healthy and trustworthy crypto project looks like.<\/p>\n<p>Okay, so, what do we do when a project is so young and fresh that the social signal tracker is not enough for us to evaluate its potential? We get ready to embark on the research journey. And the first stop is <strong>checking their social media<\/strong>.<\/p>\n<h3>Step 2: Check Out Twitter<\/h3>\n<p>I’ve already mentioned the importance of checking out Telegram and Reddit, as the primary sources of critically-evaluated information regarding particular crypto projects.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Twitter.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-08.jpg/" alt=\"How to research crypto: Twitter.\" width=\"1000\" height=\"574\" \/><\/p>\n<p><strong>Then, it’s time for Twitter<\/strong>. After all, this is where everything happens. Yet, if you only take Twitter into consideration, you could easily miss out on serious, technical projects. Many of them don’t have a huge following, or overly-active social media presence.<\/p>\n<p>On the flip side, many new low-volume projects overemphasize the importance of their Twitter performance, and their self-promo content may flood your newsfeed. Therefore, it’s important to keep in mind that <strong>just because a project knows how to build a Twitter following by posting nice pieces of content, doesn’t necessarily mean that this project is a valid one<\/strong>.<\/p>\n<h3>Step 3: Analyze the Whitepaper and Funding<\/h3>\n<p>Now, having established that a project is being discussed in various forums, and has a valid Twitter presence, it’s less risky to go to their website.<\/p>\n<p>And that’s where you’ll most likely find two key ingredients that will allow you to continue with your research. The first one is the company’s whitepaper.<\/p>\n<p><strong>A whitepaper is a<\/strong> <strong>document that emphasizes the technical side of the project, its features, goals, and potential<\/strong>. These documents are usually written by the core members of the project’s team, and they can reveal a lot about how serious it is. In this context, whitepapers are like some kind of crypto research reports.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to research crypto: Whitepaper.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how-to-research-crypto-09.jpg/" alt=\"How to research crypto: Whitepaper.\" width=\"1000\" height=\"541\" \/><\/p>\n<p>A great example is the famous <strong>Bitcoin whitepaper<\/strong>. Written in 2008 by the enigmatic Satoshi Nakamoto, and titled “<em>Bitcoin: A Peer-to-Peer Electronic Cash System<\/em>”, this document presented an idea which, eventually, became the foundation for the entire DeFi system.<\/p>\n<p>Those who’ve read it, and realized its potential, were the ones who didn’t hesitate to get themselves enough <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin when its price was still in the cents.<\/p>\n<p>Apart from the technical details, whitepapers allow users to <strong>accurately evaluate the product’s use case<\/strong>, and how realistic it is to expect a demand for it. This allows users to get the answers to the previously mentioned big questions of “<em>why?<\/em>” and “<em>how?<\/em>” is this project being developed? If the answers don’t satisfy you, it’s a clear indicator that the project is probably not worth your attention.<\/p>\n<p>The second ingredient is <strong>funding<\/strong>.<\/p>\n<p>Usually, you’ll be able to find this information on the project’s website, in the “<em>funding<\/em>” section. There, you’ll be able to see <strong>what investors and financial backers have already shown their belief in the project<\/strong>. And, of course, if you find prominent names among them, it’s a green flag.<\/p>\n<h2>Wrapping Up<\/h2>\n<p>This brings us to the end of this section. I hope that, by now, it has become clearer how to research crypto. It’s a vital part of being successful in this field. Therefore, it’s essential that traders, especially beginners, know where to start, and avoid falling victim to scammers & zero-value projects.<\/p>","youtube_video":{"id":84,"channel_id":1,"sort":28,"video_title":"Crypto Research Fundamentals: How to DYOR (Animated Explainer)","description":"How to research crypto?\n\nIt\u2019s important to know what to research when buying crypto. It\u2019s the best way to optimize your gains, and prevent unnecessary losses.\n\nIn this video, I will answer how to research crypto, what are the most trusted, and applied, crypto research techniques, and, finally, what crypto indexes and concepts are important, in order to level up your crypto trading and researching skills.\n\nDo you use any of these crypto research techniques, methods and tricks? Do you have any suggestions, ideas, or advice? Make sure to let everyone in the comment section below!\n\nVideo Time Table:\n\n0:00 Introduction to Crypto Research Fundamentals\n1:29 Tokenomics Research\n2:34 Airdrop Research\n3:21 DeFi Research\n4:23 NFT Research\n5:29 How to Research Crypto\n6:28 Social Signals Tracker\n7:57 Twitter Research\n8:37 Whitepaper Research\n9:49 Funding Information\n10:05 Wrap-up: Crypto Research Fundamentals: How to DYOR?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained \n\n#CryptoResearch #SocialSignals #DYOR","video_id":"dA0lEcFViDc","duration":639,"view_count":216,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/crypto-research-fundamentals-how-to-dyor-animated-explainer.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-06-14T14:04:28.000000Z","created_at":"2023-06-14T23:00:11.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}},"featured_image":{"id":3097,"uuid":"87256dfb-e77b-4274-9edf-8819bb52b847","name":"how-to-research-crypto-featured-image.jpg","url":"https:\/\/assets.bitdegree.org\/crypto\/storage\/optimized\/how-to-research-crypto-featured-image.jpg","path":"crypto\/storage\/optimized\/how-to-research-crypto-featured-image.jpg","mime_type":"image\/jpeg","disk":"digitalOceanSpaces","size":90891,"width":1024,"height":576,"custom_properties":null,"created_at":"2023-06-19T06:58:40.000000Z","updated_at":"2023-06-19T06:58:40.000000Z"}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin 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Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming Techniques","status":"published","modified_content":null},{"chapter_id":6,"order":12,"slug":"what-is-an-oracle-in-crypto","title":"Crypto Oracles: The Link Between Blockchain and Outside World Data","status":"published","modified_content":null},{"chapter_id":6,"order":13,"slug":"crypto-gambling","title":"The Peculiarities of Decentralized Crypto Gambling","status":"published","modified_content":null},{"chapter_id":6,"order":14,"slug":"what-is-the-metaverse","title":"Metaverse: A New Perception of Reality","status":"published","modified_content":null}]},{"id":7,"title":"Trading & Investing","slug":"trading-and-investing","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-trading.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-trading-101.jpg","rating":80,"sections":[{"chapter_id":7,"order":1,"slug":"where-to-trade-crypto","title":"Where Can You Trade Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration Date","status":"published","modified_content":null},{"chapter_id":7,"order":8,"slug":"what-is-fud","title":"What is FUD: How to Use It to Your Advantage While Investing in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":9,"slug":"investing-in-cryptocurrency","title":"Investing in Cryptocurrency: How to Manage Your Risks?","status":"published","modified_content":null},{"chapter_id":7,"order":10,"slug":"what-is-a-rug-pull-in-crypto","title":"What is a Rug Pull in Crypto?","status":"published","modified_content":null},{"chapter_id":7,"order":11,"slug":"how-to-avoid-rug-pulls-in-crypto","title":"How to Spot and Avoid Rug Pulls?","status":"published","modified_content":null},{"chapter_id":7,"order":12,"slug":"how-to-avoid-crypto-taxes","title":"The Key Legal Techniques of Avoiding Crypto Taxes","status":"published","modified_content":null}]},{"id":8,"title":"Crypto Analysis","slug":"crypto-analysis","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-analysis.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-analysis-101.jpg","rating":100,"sections":[{"chapter_id":8,"order":1,"slug":"what-is-bullish-and-bearish","title":"Bearish and Bullish Markets: Do They Matter?","status":"published","modified_content":null},{"chapter_id":8,"order":2,"slug":"best-technical-analysis-indicators-for-crypto","title":"5 Best Crypto Technical Analysis Indicators You Must Know About","status":"published","modified_content":null},{"chapter_id":8,"order":3,"slug":"what-is-candlesticks","title":"Technical Analysis: What are Candlesticks, Trendlines, and Patterns?","status":"published","modified_content":null},{"chapter_id":8,"order":4,"slug":"how-to-track-new-crypto-coins","title":"Crypto Tracking: How to Track Your Favorite Coins & Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]" current-chapter="crypto-analysis" current-section="how-to-research-crypto">

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