We’re within the midst of a large Crypto crash. So what ought to a brand new investor do?
We’re within the midst of a large Crypto crash. Right here’s how a lot the highest cryptos are down as in comparison with their All-Time Highs.
- Bitcoin is down 63%
- Ether is down 72%
- BNB is down 65%
- Cardano is down 85%
- Solana is down 89%
- Dogecoin is down 92%
- Polkadot is down 87%
I give attention to pre-listed sturdy initiatives with stable prospects and I take advantage of the ROHAS methodology to judge new crypto initiatives.
Within the ROHAS methodology, you could grade a crypto undertaking on 5 parameters:
- Historical past
Perceive and analyze how the undertaking generates revenues for the ecosystem and what’s the international financial impression of the undertaking? This data may be obtained from:
- the official web site of the undertaking
- the White / Gentle / Yellow / Beige Paper of the undertaking
Primarily based in your analysis, grade the income mannequin of the undertaking on a scale of 1 to five.
The group / crew (founders, dev, enterprise) have to be highly-skilled and have sturdy prior expertise, sturdy credibility, and optimistic social media standing.
This data may be obtained from the LinkedIn profiles of the crew members. Be cautious of initiatives with nameless groups.
Primarily based in your analysis, grade the group behind the undertaking on a scale of 1 to five.
3. Historical past
The undertaking should have proven sturdy progress in:
- Transaction quantity
- Lively customers
- Buying and selling quantity
- Commerce pairs
Primarily based in your analysis, grade the historical past of the undertaking on a scale of 1 to five.
The consensus mechanism and know-how platform have to be sturdy. This data may be obtained by an evaluation of the undertaking’s GitHub repositories.
Primarily based in your analysis, grade the consensus mechanism and know-how platform of the undertaking on a scale of 1 to five.
The undertaking should have a big, vibrant, lively, engaged, optimistic neighborhood with a fair proportion of fanatics. The foremost social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.
Primarily based in your analysis, grade the social neighborhood of the undertaking on a scale of 1 to five.
I avoid initiatives the place:
- Any ROHAS parameter is under 3.
- The undertaking appears too complicated.
- There’s sustained unfavourable publicity across the undertaking.
Disclaimer: I’m not a registered funding, authorized, tax advisor, or dealer/vendor. All funding / monetary / authorized opinions expressed by me are meant as instructional materials. You must contemplate looking for impartial authorized, monetary, taxation, or different recommendation to verify how the knowledge pertains to your distinctive circumstances. I hyperlink to or seek advice from exterior sources on your comfort. I’m selective about them however I don’t endorse them.
This publish was first printed within the Crypto With Rohas e-newsletter: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w