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 concentrate on pre-listed robust tasks with stable prospects and I exploit the ROHAS technique to judge new crypto tasks.
Within the ROHAS technique, it’s good to grade a crypto undertaking on 5 parameters:
- Income
- Group
- Historical past
- Algorithm
- Social
1. Income
Perceive and analyze how the undertaking generates revenues for the ecosystem and what’s the world financial influence of the undertaking? This data will be obtained from:
- the official web site of the undertaking
- the White / Gentle / Yellow / Beige Paper of the undertaking
Based mostly in your analysis, grade the income mannequin of the undertaking on a scale of 1 to five.
2. Group
The group / group (founders, dev, enterprise) should be highly-skilled and have robust prior expertise, robust credibility, and optimistic social media standing.
This data will be obtained from the LinkedIn profiles of the group members. Be cautious of tasks with nameless groups.
Based mostly in your analysis, grade the group behind the undertaking on a scale of 1 to five.
3. Historical past
The undertaking should have proven robust development in:
- Transaction quantity
- Lively customers
- Buying and selling quantity
- Liquidity
- Commerce pairs
Based mostly in your analysis, grade the historical past of the undertaking on a scale of 1 to five.
4. Algorithm
The consensus mechanism and expertise platform should be sturdy. This data will be obtained by an evaluation of the undertaking’s GitHub repositories.
Based mostly in your analysis, grade the consensus mechanism and expertise platform of the undertaking on a scale of 1 to five.
5. Social
The undertaking should have a big, vibrant, lively, engaged, optimistic group with a fair proportion of fanatics. The foremost social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.
Based mostly in your analysis, grade the social group of the undertaking on a scale of 1 to five.
Crimson flags
I steer clear of tasks the place:
- Any ROHAS parameter is beneath 3.
- The undertaking appears too complicated.
- There may be sustained destructive 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 need to take into account looking for unbiased authorized, monetary, taxation, or different recommendation to test how the knowledge pertains to your distinctive circumstances. I hyperlink to or consult with exterior sources in your comfort. I’m selective about them however I don’t endorse them.
This publish was first revealed within the Crypto With Rohas publication: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w
