CRYPTO CURIOUS by Kapllanaj Majlinda

Author:Kapllanaj, Majlinda
Language: eng
Format: epub
Published: 2022-05-08T00:00:00+00:00

Once you narrow down a crypto that sparks your interest, here are the three main “W” questions you need to ask yourself: What, Who and Where.

WHAT problem is this crypto trying to solve?

Do you know why the crypto was created? What problem is it solving? For example, Bitcoin solves the problems that come with centralization, by providing a decentralized solution for payment transactions and removing third parties. Ethereum is taking the principles of Bitcoin’s decentralization of transactions and taking them one step further by decentralizing the entire computing network, by leveraging smart contracts. The following can help you figure out what problem a certain crypto is trying to solve:

Whitepaper: The whitepaper is a document that explains the cryptocurrency’s purpose, what problem it’s trying to solve, and a roadmap on how the founders plan to succeed. Think of this like a marketing document to attract investors so they can learn more about the cryptocurrency or project. Keep in mind that the whitepaper has no regulations or audits, and it does not provide any financial information. If a cryptocurrency does not have a whitepaper, this will be a major red flag.

Third-party research: Third-party sites such as Binance (research.binance.com) and Messari (messari.io/research) are meant to be a one-stop shop for you to research cryptos. Both companies have branded themselves as professional and unbiased, and they do their own fact-checking. The typical information you will find here, other than tokenomics, include links to articles and recent developments. It’s up to you to decide whether you trust these sites, so check them out and decide for yourself.

News sources: It is very important you get your news from unbiased sources. There is a term most crypto investors use to refer to fake or unreliable information, and that is “FUD,” standing for Fear, Uncertainty and Doubt. This kind of biased news source is intentionally trying to create fear and uncertainty in the markets, by spreading lies or disinformation either on social media sites or through articles. The intent is to get panicky crypto investors to sell their assets and therefore create a drop in the price. The crypto world moves very quickly, so you want to make sure a third party is fact-checking and producing reliable content. The following websites are good sources for unbiased blockchain/crypto news: Coin Telegraph (cointelegraph.com), Coindesk (coindesk.com), and Bitcoin Magazine (bitcoinmagazine.com).

Blogs: Most cryptocurrencies have websites, but they are usually very vague, and push sales without any substantial information. If you search for the crypto you’re trying to invest in, you should soon see whether they have a crypto blog, which is often at a different URL than their official website; that should give you some information regarding recent developments and major announcements. Many of these blogs are personally updated by the developers themselves, so will help you even further with understanding their roadmap and how far along they are on it. For example, Ethereum’s website is Ethereum.org and the blog is blog.ethereum.org

Social media: Similarly, make sure to review the social media presence of the cryptocurrencies you want to invest in.

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