Every crypto Investors need to do their own research in order to be a good investor. An investor needs to know where to find the best information in order to correctly evaluate a crypto project. If you study the metrics of new projects and look for only news and big events, you increase your chances of finding the next big opportunity.
Expert investors know how to research projects so as to gather information before the hype of a particular token or coin. Knowing how to do research, increases your chances of buying in before the price spikes or selling before a token dumps.
Crypto research is not the same as technical research on a price chart. To do crypto research, you do not have to be an expert in technical analysis.
It is best to analyze the fundamental aspect of a project which is the long term indicator of future prices and building wealth. The six tools mentioned in this article will give you a better understanding on how to do fundamental analysis and how to spot the latest trends in crypto and find the best investment opportunity.
The Six Tools
- COINGECKO
This is the first and mostly commonly used master tool to learn everything you need to know about a coin. It has so many coins you can track. This is a very renowned type of cryptocurrency tracker tool for all the altcoins. There are similar ones to it like Coinmarketcap, they all do the same thing. Coingecko has a list of all the available cryptocurrencies.
The first reason you need a tool like this is that whenever you hear any news about a coin, you search it up, getting the price of the coin which you see in other exchanges, it has metrics like the market cap of the coin which is the total valuation of the coin at that point, a fully diluted valuation which is when all the token valuation comes out, how much is the total valuation of the current token that is circulating and how much the whales and the early investor’s control.
There is also a 24-hour trading value metric which is used to know if the coin is bullish or bearish, this acts as a signal for you.
There is also information for the project such as the website, all the wallets that support the coin, and the explorer which shows all the transactions of the coin, the communities, source code.
There is a historical price chart
Another outstanding feature is that it has a market tab where you see all the exchanges that you can go to buy the coin for trading. It also shows the trading volume of the coin on the exchanges which helps you decide the best exchange to buy the coin. This helps to limit scams on buying fake coins.
2. TRADING VIEW
To invest in crypto, an investor needs to master Trading view. Trading view is the number one charting solution for all the exchanges, platforms, portfolio trackers of all coins. When looking for the price level of a coin on any exchange, they use the same interface, therefore, you need to be familiar with looking at the trading view and knowing what the candles represent.
3. DEX TOOLS
This tool is the most useful if you plan to trade on DeFi platforms such as UniSwap, SushiSwap, PancakeSwap etc. This tool is an advanced tool when compared to Coingecko, because while Coingecko tracks coins on centralized exchanges and some major decentralized exchanges, it does not have all the data when it comes to heavy DeFi platforms and projects. Dex tool solves this because it focuses only on projects that trade on decentralized exchanges. It tracks how deep the liquidity is and also informs you if the token is a fake.
4. DEFI LLAMA
This tool is the best tool for a trader who wants to get involved with DeFi and passive income. DeFi is another part of crypto investing where you get extra rewards for your token instead of just trading them and betting that the price will go up in the future. When you do DeFi activities, you are after where you can get extra staking APY or farming APY on top of your existing assets. Defi Llama is where you find how you can get extra reward on the coin you are holding.
5. COINMARKETCAL
This is best for finding out crypto alpha and upcoming events. When you are investing in crypto, you need to track the most important updates and events happening on a coin in order to get in early and earn some profit. Coinmarketcal is the best tool for that. It tracks all the upcoming events. You can use the filter section to filter for the most legit coin.
6. TOKENUNLOCKS
This helps in finding potential token dumping before it happens. When investing in crypto, you do not only have the projects’ coins that are trading on the exchanges, most coins have allocations or a certain amount of tokens in the hands of early investors, team, foundations, etc that are locked and are slowly released later on. It is advisable to keep track of how much tokens are unlocked by the early investors. The best tool for this is tokenunlock.
Bottom line.
These are the six best tools to use to find your own crypto alpha. If you can master them, you will be able to do your own research and figure out if a new project is legit and if you discover new opportunities before anyone else. You need to get familiar with this tools if you want to become a better crypto investor and not rely on social media sentiments.
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