Crypto Investing
23 Feb 2021

4 Ways to Research Before Investing in Crypto

Farheen Shaikh

I don’t invest in anything I don’t understand – Warren Buffet.

You can probably make out from the above quote how important it is to know about an investment before diving into it. Even the star investor Warren Buffet is sceptical about making an investment choice without correctly understanding an asset.

While researching before investing is essential in general, it is even more crucial while dealing with highly volatile assets like cryptocurrencies.

When you fail to research; you won’t know what to expect from your investments:

You won’t know the risks associated with it, the potential profits you could gain, and most importantly, you won’t be able to define your level of commitment towards that investment. And apparently, these are the most important things that you should know about your holdings.

But how do you exactly do this research? What should you look for and Where?

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Top 4 Ways to Research Cryptocurrencies

Different individuals have varied ways through which they prefer to get their information and make educated decisions. But here I will share with you some of the most accessible and helpful resources:

Study the Trend

Please don’t scratch your head; you don’t have to do any complicated math or dig through piles of data.

The two very user-friendly resources that will give you a simplified view of the trends is CoinMarket Cap and CoinGecko.

A glance on these websites will tell you the market cap, all-time high, all-time low, last 7day performance, last 24hr drift and almost everything you can think of. If you wish, you can even see a coin trend from its inception to date with just a few clicks.

People like me, who are also keen to know about the protocols attached to specific cryptocurrencies, can view the ‘about’ section of cryptocurrencies. It talks about the development of each cryptocurrency, its implications etc.

This is an excellent way for beginners to know which cryptocurrency has a competitive advantage over others, and if the crypto you are looking to invest in has potential.

Know What’s Happening

Just from the top of my head, the two information-rich resources to know about what is happening in the crypto market is Cointelegraph and CoinDesk.

Both of these publications cover cryptocurrencies extensively; any new update that the development team of any crypto may be planning, any upcoming forks, along with multiple insightful interviews that help you get a sneak peek of what are people up to in the crypto sphere.

They also cover unexpected or extreme market movements with a thorough breakdown of each element that influences those movements. The language sometimes maybe a little technical, but if you diligently try and read their articles, they can help you make informed decisions.

My pro tip would be to signup for their newsletters.

Educate Yourself

By educating yourself, I don’t mean just about crypto; learn about everything related to crypto, finance and investing. If you are diving into cryptocurrencies without knowing about investing and finance, I don’t know how you will pull through. So yes, learn and experiment with investing vehicles, strategies and tips and tricks.

But the most obvious challenge people face here is the lack of easy to understand pieces around these topics. And I bet you will agree on this too that there is no better place to learn about these vital topics than KuberVerse.

We put out extensive, easy to understand pieces around every possible topic related to finance and investing. We also send out weekly newsletters to Kuberians, where they can have a glimpse of the crypto market along with some reading suggestions.

Apart from that, CoinSwitch Kuber’s social media is also a fun source to know more about such topics.

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Follow Industry Veterans and Join Communities

If you are genuinely keen on cryptocurrencies, you should follow some industry veterans on Twitter. Follow the core team of a project you are drawn to, like Justin Sun, Founder of Tron, Vitalik Buterin, Co-Founder of Ethereum etc. You can also connect with influential crypto investors like Chamath Palihapitiya, Jack Dorsey etc.

These guys are very active on Twitter and often share their thoughts about the performance of the markets.

Also, the crypto ecosystem is huge on community building. There are multiple thriving communities around cryptocurrencies and blockchain that you can be a part of to learn more about market sentiments.

Some communities that you can become a part of include Cryptointalk, Bitcoin forum, Blockchainhub etc.

FAQs on Research Before Investing in Crypto

1.What do I need to know before investing in cryptocurrency?

You should know about the past performance of the cryptocurrency, its utility and futures plans, along with other factors like market sentiments and liquidity.

2.Which Cryptocurrency is best to invest in 2021?

The cryptocurrency market is very dynamic; you should always do your due research before investing in any cryptocurrency.

3. Which Cryptocurrency will explode in 2021?

BAT, LINK, etc., are doing major developments that might increase their value. Closely monitoring the markets should help you gauge potential cryptocurrencies. 

[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.


Farheen Shaikh

Content Writer

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