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 deal with pre-listed robust initiatives with strong prospects and I exploit the ROHAS technique to judge new crypto initiatives.
Within the ROHAS technique, it’s good to grade a crypto venture on 5 parameters:
- Income
- Group
- Historical past
- Algorithm
- Social
1. Income
Perceive and analyze how the venture generates revenues for the ecosystem and what’s the international financial impression of the venture? This data will be obtained from:
- the official web site of the venture
- the White / Gentle / Yellow / Beige Paper of the venture
Primarily based in your analysis, grade the income mannequin of the venture on a scale of 1 to five.
2. Group
The group / workforce (founders, dev, enterprise) should 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 workforce members. Be cautious of initiatives with nameless groups.
Primarily based in your analysis, grade the group behind the venture on a scale of 1 to five.
3. Historical past
The venture will need to have proven robust development in:
- Transaction quantity
- Lively customers
- Buying and selling quantity
- Liquidity
- Commerce pairs
Primarily based in your analysis, grade the historical past of the venture 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 venture’s GitHub repositories.
Primarily based in your analysis, grade the consensus mechanism and expertise platform of the venture on a scale of 1 to five.
5. Social
The venture will need to have a big, vibrant, lively, engaged, constructive neighborhood with a justifiable share of fanatics. The main social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.
Primarily based in your analysis, grade the social neighborhood of the venture on a scale of 1 to five.
Crimson flags
I keep away from initiatives the place:
- Any ROHAS parameter is beneath 3.
- The venture appears too advanced.
- There may be sustained adverse publicity across the venture.
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 is best to take into account searching for impartial authorized, monetary, taxation, or different recommendation to verify how the knowledge pertains to your distinctive circumstances. I hyperlink to or confer with exterior assets 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 publication: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w
