How To Do Your Own Crypto Research Using CoinMarketCap

By Courage Kimber, Crypto Strategist & Blockchain Consultant

When I first started in crypto, I would often hear the phrase, DYOR, Do Your Own Research, and I would wonder how I could do my own research. I had no idea where to start. ?If you’re new to crypto and want to invest but don’t know how to do your own research, read on.

?Let’s say you hear about some hot new token from a friend, and you want to find out more about it. ?It's best to start with a site like CoinMarketCap. It is an excellent place to begin your crypto research. Before you dive into the deep end, you will want to make sure that you research the project and look for signals that it is a sound investment.

So, what is CoinMarketCap? — Well, it’s a website that tracks the significant activity of cryptocurrencies across markets and offers real-time data on coin prices, trading volumes, etc. Hence, it has more than enough information to give you an idea about what projects are suitable investments.

DYOR with CoinMarketCap

1. Quick Check Items—These items at a glance can give you enough information to decide to invest.

• Project Overview—It has most of the information you need to make a quick and informed decision all in one place. It provides info such as the description of the project and the people involved, the problem they are solving, and relevant milestones achieved.
• Holders—The first thing to look at when investing in any cryptocurrency is how many holders the coin has. The more holders, the better. ?You want to see enough traction and a decent number of holders to warrant investing in the project.
• The Charts—The optimal purchase price can be determined by looking at historical data. If the price has been up and down, you can look at multiple charts with 7-day,1-month, and 3-month views. Looking at trends with the charts will give insight into when it might be a good time for buying in and what price!
• Contract Address—With one click on the contract address, you will be able to view the read-write option of the contract on the blockchain explorer.??Take a look at the contract to see if it’s coded in a way that may limit your opportunity to place sell orders or any other crypto scam. If you’re not familiar with reading smart contracts, use a site like token sniffer to check to see if it is a Honeypot or a rug pull waiting to happen.

2. Community & Social media

• ?Community Numbers—The number of community members matters in the crypto space.?Having a solid community is equally important as the problem the project is trying to solve. ?I have seen projects with no utility surpass projects with great utility simply because they had a more robust community presence. Typically, 2000 or above members on Telegram or Discord can indicate some traction for an early project.
• ?Sentiment— This is another crucial aspect of social media in crypto; how people are talking about a coin. What people are saying or not saying speaks volumes. Social media drives the cryptocurrency market, and the social reputation will let you know whether to invest. There are tools like lunacrush that track sentiment and rank the projects based on social intelligence data.

3. Whitepaper — This will help you identify the project’s technical merit. The?Whitepaper will have a complete overview of the project. Whitepapers typically lay out the roadmap, mission, and vision of the project. But here, we will focus on the two areas below for quick research. ?

• Problem and Solution — So, one of the essential questions is, does this project solve a specific problem. When I mention this question it's more to understand whether this project has some utility. Projects that solve real-world problems are the types of projects that typically can live beyond the hype and are better suited to survive bear markets.
• Tokenomics — This is how the token works or the token economics. This portion of the white paper usually highlights what’s in it for the investor or user. Some information consists of the total number of tokens in supply, Token Distribution. Look to see if there is a liquidity lock to avoid a potential rug pull and be cognizant of the token distribution numbers for the project team. ??

Before you put your hard-earned money down to invest, take a little time and try this approach above to do your own crypto research.

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