COMPLETE GUIDE TO CRYPTOCURRENCY ANALYSIS

Transcription

COMPLETEGUIDE TOCRYPTOCURRENCYANALYSISPicking the winning coins for a 1000% Return On InvestmentBY AZIZ ZAINUDDIN, FOUNDEROF MASTERTHECRYPTO.COMMASTERTHECRYPTO.COM

AZIZ ZAINUDDINFOUNDER, MASTERTHECRYPTOHi everyone! I'm Aziz and I'm a seasoned cryptocurrencytrader who's really passionate about 2 things:1) The awesome and revolutionary technology underlyingCryptos (Blockchain)2) Making a ton of money along the way! I've been investingcryptos for awhile now, and the returns are mind-blowing.Imagine earning 500% within 3 months. You absolutely cannotgenerate these returns using traditional investmentalternatives. Earning multiples over your capital is really thenorm in the cryptocurrency world. But the journey along theway is extremely tough especially for someone like me whoprior to this, had no tech knowledge. The challenge in thecrypto world is filled with computing jargon and volatile pricesthat WILL deter many. However, the potential of theBlockchain technology and the ability to make a massiveamount of money should be an opportunity for all to grab! Myinvestment thesis involves fundamental white paper research,technical analysis (looking at price movements) as well asevaluating market sentiment. So far, the culmination of myinvestment knowledge and decisions have been rock solid.MASTERTHECRYPTO.COM

I started trading on my own because I believed in the tech andpossessed considerable experience in financial trading. I'vemade so much that I feel it's selfish for me to just keep theknowledge and strategies all too myself. As of now, almost allof my immediate family members and close friends areinvested in cryptos, and making lots of money.That's a stunning achievement considering they have close tozero tech or trading knowledge. My objective is to share withas much people the beauty of the tech and the skills needed tonavigate the crypto world. I'm gonna share with you a trove ofvaluable tips, resources and strategies on making money inthe crypto world. Let's build an awesome community and makeloads of money along the way!MASTERTHECRYPTO.COM

IntroductionNavigating the world of cryptos can be very daunting due tovast usage of computing jargon and technical concepts thatwill almost certainly confuse you. Add to that the relativeinfancy of the technology, it can be hard finding structuredresources to assist you in your journey.Here at Master The Crypto, we’ve taken the liberty to createa comprehensive free guide for investing in cryptocurrencies.Importance of Performing Your Own Analysis.For traditional investments such as stocks, fundamentalanalysis entails evaluating the financial health and viability ofa company according to its financial statements. If thenumbers look good, we can be confident that the companyhas good fundamentals and we can therefore invest in it.Performing fundamental analysis for cryptocurrencieshowever, is radically different since there are no financialstatements. Why?Because:1) Cryptocurrencies are not corporations, but ratherrepresentations of value or assets within a network. Itsviability is not based on generating a revenue, but ratherdirectly depends on the participation of the community(users, miners and developers). Each cryptocurrency is amanifestation of the different applications of Blockchaintechnology, and are usually decentralized;MASTERTHECRYPTO.COM

2) The crypto space is in its infancy stages, and almost all ofthe cryptocurrencies are in development stages. Whichmeans that there are limited uses cases in the real worldcurrently and therefore, a lack of track record to show for.Thus, fundamental analysis on cryptos must be performedwith a different methodology. Given the complex nature ofcryptos and their underlying technology, it is even moreimportant for us to engage in research to assess the viabilityand potential of the coins.This ensures that we make better investment decisions andare kept in the loop of things. But more importantly, a goodunderstanding of a coin’s fundamentals allows you to formyour own opinions and have your own stand, which is rare inthe crypto world due to its complexity.However, do not worry if it all seems too complicated! We’vecreated a comprehensive and easy-to-understand guide tohelp you. Let’s begin!MASTERTHECRYPTO.COM

STEP 1:SOURCES OFINFORMATIONMASTERTHECRYPTO.COM

Knowledge is power. In order to assess a coin, we have tofirst know where to get the key sources of information from.Here is where you should get the information from:1) Coin’s White PaperA detailed proposal by the development team whichoutlines the purpose and mechanics of the coin. Thisrepresents the main source of evaluating thefundamentals of the coin. You should always read thecoin’s white paper before investing. The drawback is thatit can get very technical given the usage of technologicaljargon and concepts that is hard for an average Joe tocomprehend.2) Coin's Slack Channel or BlogThis represents the official and main channel ofcommunication of the core development team. Join theirslack channel and view the interaction of the developmentteam with the community. Ask questions to get moreinformation on the coin. You should also follow the updatesgiven by the developers in their official blog.MASTERTHECRYPTO.COM

3) Community Forums: Reddit/Steemit /BitcointalkForums are a great way to understand the coins better,as well as the sentiments surrounding the coin. You canalmost definitely find simple definitions on certainconcepts or easy-to-understand analysis of any coinsfrom forums, as the community is well-informed.The diversity of thoughts allows you to grasp themechanics of the coin far better, especially if you’re nottechnically-inclined. If you’re not familiar with thetechnical jargon, a good tip is searching for your querytogether with the term “ELI5”, which stands for “Explainit to me like I’m 5 years old”.MASTERTHECRYPTO.COM

STEP OM

The next step entails systematicallyasking questions on the Coin toassess whether it is a goodinvestment. For your convenience,we’ve created a checklist just forthat.MASTERTHECRYPTO.COM

OVERALL CONCEPTASSESSMENTPurpose of Coin?(Having a clear objective sets the coin off toa good start, especially if it’s revolutionaryor the first of its kind)Does it Solve a Real Problem?(Assessing the scale of the problem the coinaims to solve is vital to understanding theviability of the solution the coin offersDoes the Coin Possess Any Utility? (A coinmust have strong utility to incentivize people tohold the coins as an investment; a coin’s utilityis strongly correlated with its value)Is the White Paper Clouded in Marketinglingo? (As a rule of thumb, If it is filled withmarketing terms that hype the project, then itsbest to stay away from it.)Is the Project Funded/Backed by ProminentInvestors? (Being backed by prominentinvestors adds a seal of credibility to theproject)MASTERTHECRYPTO.COMVerdictGood/Bad

OPERATIONALASSESSMENTWhat is the Consensus Mechanism of theCoin? (Knowing the consensus mechanism be it Proof-of-Work, Proof-of-Stake or others,is a great way of understanding how thecoins work)Is the Coin’s Governance StructureCentralized or Decentralized?Whats the Development Roadmap?(There has to be a clear timeline for thedevelopment of the Coin. This is a goodindicator of the development team'scommitment)Is There a Running “Proof” of the Coin?How Much Money Have They Raised? Howhave they spent the money?MASTERTHECRYPTO.COMVerdictGood/Bad

Pro-tip onOperationalAssessmentRegarding DecentralizationCryptocurrencies are meant to bedecentralized in nature to empower themasses to participate in securing thesystem and create a dynamic ecosystem.However, there are certain Coins thathave a centralized structure, which canhave their own advantages. Usually, aCoin’s governance structure can beimplied from their consensus mechanismMASTERTHECRYPTO.COM

MARKET ANALYSISIs the Coin the First of Its Kind in Solvinga Particular Problem?(A Coin that is the first application of its kindwill have a strong “First-mover” advantage)How Different is the Coin from Its NearestCompetitor? (A Coin with new technologies orsolutions that is different from its competitorscould have greater traction and adoption)How Lucrative is the Target Market?(The target audience for the Coin’s applicationshould be well-defined and large enough tosupport substantial growth)Are There Significant Legal Barriers?(This could compromise the resources andtimeline of the project)MASTERTHECRYPTO.COMVerdictGood/Bad

DEVELOPMENT TEAMASSESSMENTWho are the Founding Team Members &What Are Their Experiences?(The success of the project depends largelyon the substance of the core founding team)Who Are the Advisors?(A project that is backed and advised bycredible advisors would be more credible)Are they active in responding throughtheir official channels and forums?Are They Active in Conveying TheirProgress Development & Do They Adhereto their Timeline?MASTERTHECRYPTO.COMVerdictGood/Bad

Pro-tip onDevelopmentTeam AssessmentRegarding Development TeamCommunicationsA high engagement level is good sincethe development team has dedicatedresources to engage the community andclear any doubts/questions regarding theproject.MASTERTHECRYPTO.COM

COIN SUPPLYASSESSMENTWhat is the Supply Structure of the Coin?How Many Coins Will There Ever Be?(Having a finite coin supply would make thecoin a stronger store of value)What is the Market Capitalization of theCoin?(Market cap is a measure of the Coin’svaluation)Is There a Hard Cap on the Coin?What will be the Allocation of Coins to theFounders and is there a Lock-up Period?(A high percentage of Coins given to thefounding team is not a healthy indicator)Is the Distribution of Coins Even?(A Coin that is owned by a few individuals(called “Whales”) could result in ad

Pro-tip on CoinSupply AssessmentRegarding Hard CapsThis is relevant for an Initial Coin Offering (ICO); Ahard cap will determine the total initial issuance ofa Token/Coin that will be created, and is fixed.ICO’s with a hard cap is seen to bring more valueto investors as compared to a no-cap token/coin(supply is not fixed), since the scarcity of coinsfrom a fixed supply could increase the value of thecoins in the futureMASTERTHECRYPTO.COM

RED FLAGSIs the Coin Based on an MLM Structure or aPonzi Scheme? (Stay away from MLM-basedcoins. Cryptocurrencies should be backed byBlockchain technology, not an MLM structure.Is There Scam Warnings Relating to theCoin? (Do a quick Google search on whetherthe Coin has been labelled a scam.)MASTERTHECRYPTO.COMVerdictGood/Bad

STEP 3:START INVESTING!MASTERTHECRYPTO.COM

After engaging in your due diligence, it’s time for you to finallypurchase the coins that you’re confident has the rightfundamentals. In order to buy coins, you have to openexchange accounts. However, it can be tricky to find the rightexchange since there are many things to look out for.Therefore, we’ve made it easier for you to choose whichexchange is best for you!Opening an Exchange AccountIf you’re new to cryptocurrencies, your first step would be tofind an exchange that allows you to deposit money. Due toregulations, all exchanges require you to verify your accountbefore depositing your funds, through the submission of youridentity proof and any other personal information. Hence, youshould find an exchange in your domestic country first toconvert money from your bank account into Bitcoin.It is important to note that not all crypto exchanges accept fiatmoney; some exchanges only allow you to deposit coins(most commonly Bitcoin) to purchase other alternative coins.Bitcoin is the most popular crypto that is offered on almost allcrypto exchanges, and represents the gateway to purchasingother coins. In other words, if you want buy any other coins,you must do the following:MASTERTHECRYPTO.COM

Step 1: Open a domestic cryptocurrency exchange inyour country and verify your account (submit identityproof)Step 2: Deposit funds from your bank account to yourcrypto exchange account and start buying BitcoinStep 3: Open a crypto exchange account that offers avariety of other coin. Usually these exchanges do notaccept fiat deposits and only allows coin deposits.Step 4: After verifying your account, transfer theBitcoin that you’ve bought from your local exchange toyour new crypto exchange and you can start buyingother coins with your Bitcoin.In the U.S, a list of exchanges – segregated accordingto the allowable type of deposits (money/coins) - andtheir characteristics are found below:MASTERTHECRYPTO.COM

Thank youBrought to you by:Join our closed Facebook group,"Master the Crypto: AdvancedCryptocurrency Knowledge"MASTERTHECRYPTO.COM

a comprehensive f ree guide f or invest ing in crypt ocurrencies. I mp o rtan ce o f P erfo rmi n g Y o u r O w n An al ysi s. F or t radit ional invest ment s such as st ocks, f undament al analysis ent ails evaluat ing t he f inancial healt h and viabilit y of a company according t o it s f inancial st at ement s. I f t he numbers look good, we can be conf ident t hat t he company has good f .