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 give attention to pre-listed robust initiatives with stable prospects and I take advantage of the ROHAS technique to guage new crypto initiatives.
Within the ROHAS technique, it’s good to grade a crypto mission on 5 parameters:
- Income
- Group
- Historical past
- Algorithm
- Social
1. Income
Perceive and analyze how the mission generates revenues for the ecosystem and what’s the world financial influence of the mission? This data will be obtained from:
- the official web site of the mission
- the White / Gentle / Yellow / Beige Paper of the mission
Based mostly in your analysis, grade the income mannequin of the mission on a scale of 1 to five.
2. Group
The group / crew (founders, dev, enterprise) have to be highly-skilled and have robust prior expertise, robust credibility, and constructive social media standing.
This data will be obtained from the LinkedIn profiles of the crew members. Be cautious of initiatives with nameless groups.
Based mostly in your analysis, grade the group behind the mission on a scale of 1 to five.
3. Historical past
The mission will need to have proven robust development in:
- Transaction quantity
- Energetic customers
- Buying and selling quantity
- Liquidity
- Commerce pairs
Based mostly in your analysis, grade the historical past of the mission on a scale of 1 to five.
4. Algorithm
The consensus mechanism and expertise platform have to be sturdy. This data will be obtained by an evaluation of the mission’s GitHub repositories.
Based mostly in your analysis, grade the consensus mechanism and expertise platform of the mission on a scale of 1 to five.
5. Social
The mission will need to have a big, vibrant, energetic, engaged, constructive neighborhood with a justifiable share of fanatics. The key social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.
Based mostly in your analysis, grade the social neighborhood of the mission on a scale of 1 to five.
Crimson flags
I steer clear of initiatives the place:
- Any ROHAS parameter is under 3.
- The mission appears too complicated.
- There’s sustained adverse publicity across the mission.
Disclaimer: I’m not a registered funding, authorized, tax advisor, or dealer/vendor. All funding / monetary / authorized opinions expressed by me are meant as academic materials. You need to contemplate searching for impartial authorized, monetary, taxation, or different recommendation to examine how the knowledge pertains to your distinctive circumstances. I hyperlink to or check with exterior sources in your comfort. I’m selective about them however I don’t endorse them.
This put up was first revealed within the Crypto With Rohas e-newsletter: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w
