Wednesday, May 22, 2024

Crypto Investing in a bear market | by Rohas Nagpal | Blockchain Weblog

We’re within the midst of an enormous Crypto crash. So what ought to a brand new investor do?

We’re within the midst of an enormous Crypto crash. Right here’s how a lot the highest cryptos are down as in comparison with their All-Time Highs.

  • Bitcoin is down 63%
  • Ether is down 72%
  • BNB is down 65%
  • Cardano is down 85%
  • Solana is down 89%
  • Dogecoin is down 92%
  • Polkadot is down 87%

I deal with pre-listed sturdy initiatives with strong prospects and I exploit the ROHAS methodology to guage new crypto initiatives.

Within the ROHAS methodology, it is advisable grade a crypto challenge on 5 parameters:

  • Income
  • Group
  • Historical past
  • Algorithm
  • Social

1. Income

Perceive and analyze how the challenge generates revenues for the ecosystem and what’s the world financial affect of the challenge? This info might be obtained from:

  • the official web site of the challenge
  • the White / Gentle / Yellow / Beige Paper of the challenge

Primarily based in your analysis, grade the income mannequin of the challenge on a scale of 1 to five.

2. Group

The group / crew (founders, dev, enterprise) have to be highly-skilled and have sturdy prior expertise, sturdy credibility, and constructive social media standing.

This info might 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 challenge on a scale of 1 to five.

3. Historical past

The challenge will need to have proven sturdy development in:

  • Transaction quantity
  • Lively customers
  • Buying and selling quantity
  • Liquidity
  • Commerce pairs

Primarily based in your analysis, grade the historical past of the challenge on a scale of 1 to five.

4. Algorithm

The consensus mechanism and know-how platform have to be strong. This info might be obtained by an evaluation of the challenge’s GitHub repositories.

Primarily based in your analysis, grade the consensus mechanism and know-how platform of the challenge on a scale of 1 to five.

5. Social

The challenge will need to have a big, vibrant, lively, engaged, constructive group with a justifiable share of fanatics. The most important social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.

Primarily based in your analysis, grade the social group of the challenge on a scale of 1 to five.

Purple flags

I avoid initiatives the place:

  • Any ROHAS parameter is beneath 3.
  • The challenge appears too complicated.
  • There may be sustained detrimental publicity across the challenge.

Disclaimer: I’m not a registered funding, authorized, tax advisor, or dealer/vendor. All funding / monetary / authorized opinions expressed by me are supposed as instructional materials. It’s best to think about searching for impartial authorized, monetary, taxation, or different recommendation to test how the knowledge pertains to your distinctive circumstances. I hyperlink to or discuss with exterior sources on your comfort. I’m selective about them however I don’t endorse them.

This put up was first printed within the Crypto With Rohas e-newsletter: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w

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