Crypto Investing in a bear market | by Rohas Nagpal | Blockchain Weblog

We’re within the midst of a large Crypto crash. So what ought to a brand new investor do?

We’re within the midst of a large Crypto crash. Right here’s how a lot the highest cryptos are down as in comparison with their All-Time Highs.

• Bitcoin is down 63%
• Ether is down 72%
• BNB is down 65%
• Cardano is down 85%
• Solana is down 89%
• Dogecoin is down 92%
• Polkadot is down 87%

I concentrate on pre-listed sturdy initiatives with strong prospects and I take advantage of the ROHAS technique to guage new crypto initiatives.

Within the ROHAS technique, you have to grade a crypto venture on 5 parameters:

• Income
• Group
• Historical past
• Algorithm
• Social

1. Income

Perceive and analyze how the venture generates revenues for the ecosystem and what’s the world financial affect of the venture? This info could be obtained from:

• the official web site of the venture
• the White / Gentle / Yellow / Beige Paper of the venture

Based mostly in your analysis, grade the income mannequin of the venture on a scale of 1 to five.

2. Group

The group / group (founders, dev, enterprise) should be highly-skilled and have sturdy prior expertise, sturdy credibility, and optimistic social media standing.

This info could be obtained from the LinkedIn profiles of the group members. Be cautious of initiatives with nameless groups.

Based mostly in your analysis, grade the group behind the venture on a scale of 1 to five.

3. Historical past

The venture will need to have proven sturdy development in:

• Transaction quantity
• Lively customers
• Buying and selling quantity
• Liquidity
• Commerce pairs

Based mostly in your analysis, grade the historical past of the venture on a scale of 1 to five.

4. Algorithm

The consensus mechanism and expertise platform should be sturdy. This info could be obtained by an evaluation of the venture’s GitHub repositories.

Based mostly in your analysis, grade the consensus mechanism and expertise platform of the venture on a scale of 1 to five.

5. Social

The venture will need to have a big, vibrant, energetic, engaged, optimistic neighborhood with a fair proportion of fanatics. The most important social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.

Based mostly in your analysis, grade the social neighborhood of the venture on a scale of 1 to five.

Purple flags

I keep away from initiatives the place:

• Any ROHAS parameter is under 3.
• The venture appears too complicated.
• There’s sustained unfavorable publicity across the venture.

Disclaimer: I’m not a registered funding, authorized, tax advisor, or dealer/seller. All funding / monetary / authorized opinions expressed by me are supposed as academic materials. You must contemplate searching for unbiased authorized, monetary, taxation, or different recommendation to examine how the data pertains to your distinctive circumstances. I hyperlink to or seek advice from exterior sources to your comfort. I’m selective about them however I don’t endorse them.

This submit was first printed within the Crypto With Rohas publication: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w