5 Strategies for How to Research Cryptocurrencies

Absolutely everyone in the crypto community has an opinion on which coins are ready to take off and which are already losing momentum. So, whose advice should you take? Knowing how to research cryptocurrency is more critical to trading success than anything else. In this post we’ll look at some of the best online strategies so that when you research cryptocurrencies you are thinking critically, using reliable data, improving your decision making, and successfully identifying potentially lucrative opportunities.

Strategy 1: Make Smart Use of Social Media

When you research cryptocurrencies social media channels offer a great way of getting a wider perspective and getting a sense of the different opinions that have gained traction. Check out various forums and platforms to see what is generating buzz. Don’t necessarily trust anything you read or watch but take note of what the crowd is investing in, so you can see which way the wind is blowing.

Twitter is one of the most valuable means of understanding market sentiment and the prevailing opinions on specific cryptocurrencies. Don’t hold back. Follow all the different types of experts in various fields relating to finance and the crypto arena, from accredited investors and financial journalists and analysts to crypto celebs and entrepreneurs. They may have the juciest information even before a lot of news outlets. Great examples of who to follow include Bitcoin maximalists like @Apompliano and @whalepanda expert traders like @thecryptomonk and writers like @super_crypto, @aantonop and @real_vijay, to name just a few.

However, your strategy, when it comes to Facebook, should be very different. Limit yourself to just a few of the most popular crypto Facebook groups like Crypto Coin Trader and Crypto Trader News, with tens of thousands of active participants. These groups have heavy moderation to prevent a flood of promotional content, and they can provide an excellent indication of trending coins and events, as well as market sentiment.

YouTube has unfortunately been flooded with affiliate marketing content and is going to be a less reliable source of market information as most content these days seems to be from crypto-YouTubers making money for promoting a specific coin.

In contrast, Telegram can be a valuable resource that offers the latest updates, and analysis as well as insight into market trends. However, you need to be very cautious with regard to the legitimacy of specific groups, remaining alert to bots and fake followers. As with all forms of social media, don’t invest based random views or the opinion of the crowd. Keep an eye out for buzz without substance where there is a lot of promotion but few facts about the project, and make sure to look at the metrics before making any decision. Join groups with dedicated moderators that have plenty of active users, and have not just grown their numbers through the offer of bounties and affiliate rewards.

Strategy 2: Analyze the Fundamentals

In order to research cryptocurrencies effectively, you need to analyze the fundamentals of any altcoin you are interested in investing in over the long term. One of the main questions you need to ask is how valuable is the utility? Is the coin doing something completely new, is it providing the same service that countless other coins, but better, or is there little to no real usability? Keep in mind, only a tiny percentage of altcoins provide a true innovation that provides a new solution to a pressing problem.

This strategy, while time consuming is critical to the success of any long-term crypto investment. It cannot be skipped, and you can’t take short cuts. Read the available whitepaper, and make sure you understand the underlying technology. If the project is making a smarter smart contract you need to learn how smart contracts function, what the innovation is and if possible, how the improvement is achieved, so you can evaluate if they can deliver on their promises, if there is a barrier to entry or if there may be any associated difficulties, such as regulatory roadblocks.

Strategy 3: Research Upcoming Events

Upcoming events are a great information source when trying to predict the short-term trajectory of a specific cryptocurrency or the market as a whole. If you have some idea of how the same type of event has impacted prices in the past this type of data can be even more useful.

For example, a Bitcoin halving can have a huge effect on the price of BTC, but also on the entire market. Bitcoin becomes more scarce, and the price then shoots up. New money floods into the crypto market creating a trickle-down effect that will positively impact other digital assets as new investors enter the crypto arena and discover various altcoins.

Use a crypto calendar application such as CoinMarketCal to get the data you need on any coin that you are interested in investing in so as to know what upcoming events are going to impact its immediate future.

Strategy 4: Follow the Numbers

Another great strategy to employ is to stick to the statistics. One important fact to follow is a coin’s transaction volume over a given period. Check a variety of exchanges like Binance and Kraken, and the more exchanges you consult and compare, the more accurate the insights.

When you research cryptocurrencies another important factor to consider is which topics are trending. Various keyword tools can be useful like KWFinder and Ahrefs to help you see which coins and events are the most searched for at any given time so you can effectively assess crypto market sentiment.

Strategy 5: Use an Automated Crypto Investment Platform

Having reviewed all the above options on how to research cryptocurrencies, take a moment to consider the following: What if you could make a reliable, steady return on your crypto of up to 45% a year, without performing even a minute of research?

Here at ArbiSmart, our EU licensed platform is fully automated. It performs crypto arbitrage, a form of investing that involves taking advantage of temporary price inefficiencies across exchanges. These are brief windows in which a coin is simultaneously available across a number of exchanges, at different prices.

ArbiSmart’s algorithm, connected to 35 exchanges scans for inefficiencies on hundreds of coins, 24/7, and buys on the exchange where the coin is cheapest before instantly selling for a profit, on the exchange where the price is highest.

No effort is involved. You sign up, deposit funds, and the platform takes over. Your fiat or crypto is converted into our native token, RBIS and used to generate profits from crypto arbitrage. Yields range from 0.9% to 3.75% a month, (10.8% to 45% a year).

Temporary price differences will keep occuring with the same regularity, even if the current bull run ends abruptly and prices dive again. As a result ArbiSmart provides a valuable hedge against a sudden change in market direction, while also providing high returns

Not only will you make a great return from crypto arbitrage, but you’ll also be earning compound interest. Then if you decide on a savings account that is locked for a pre-determined period, you can make up to 1% a day, at the highest account levels. Finally, there are also capital gains from the rising value of RBIS. The token has already gone up by more than 520% in just two years and it is set to shoot up further in the months ahead, as a result of the upcoming listing on the exchanges in Q4 2021 and the new utilities about to be launched later this year and early in 2022, including an interest-generating wallet and decentralized yield farming program.

However, if you choose to take the manual route and plan to exploit the volatility of the crypto markets, trading on the ups and downs of your favorite coins, research is essential. Listen to all the different opinions being voiced but be alert to baseless marketing. Use all the above strategies and sources of data to reach your own conclusions and make more informed, intelligent market decisions.

Interested in learning more? Find out more about crypto arbitrage, or visit the ArbiSmart blog to learn about a broad selection of crypto-related topics.