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 concentrate on pre-listed sturdy initiatives with stable prospects and I take advantage of the ROHAS technique to guage new crypto initiatives.
Within the ROHAS technique, you want 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 impression of the mission? This data could be obtained from:
- the official web site of the mission
- the White / Mild / Yellow / Beige Paper of the mission
Primarily based in your analysis, grade the income mannequin of the mission on a scale of 1 to five.
2. Group
The group / staff (founders, dev, enterprise) should be highly-skilled and have sturdy prior expertise, sturdy credibility, and optimistic social media standing.
This data could be obtained from the LinkedIn profiles of the staff members. Be cautious of initiatives with nameless groups.
Primarily based 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 sturdy progress in:
- Transaction quantity
- Energetic customers
- Buying and selling quantity
- Liquidity
- Commerce pairs
Primarily based 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 should be sturdy. This data could be obtained by an evaluation of the mission’s GitHub repositories.
Primarily based 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, optimistic 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 mission on a scale of 1 to five.
Crimson flags
I keep away from initiatives the place:
- Any ROHAS parameter is under 3.
- The mission appears too advanced.
- There may be sustained damaging publicity across the mission.
Disclaimer: I’m not a registered funding, authorized, tax advisor, or dealer/supplier. All funding / monetary / authorized opinions expressed by me are meant as academic materials. You need to take into account in search of impartial authorized, monetary, taxation, or different recommendation to examine how the knowledge pertains to your distinctive circumstances. I hyperlink to or discuss with exterior sources to 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
