Last week we discussed about hardware's used for crypto currency mining and also in our homework task , we discussed about cloud mining. There were more than hundred homework task submissions. I'm really glad to see the great interest of members for my course and hope it was helpful to you. Following are the topics we discussed up to today in past 5 weeks. If you missed them please go through them and try the homework tasks by yourself. If you are a beginner it will help you to gain the fundamental knowledge of crypto currencies , trading , mining etc.
Trading Lessons for beginners
Introduction to Crypto Currency Mining
Today I'm discussing a new topic. Now if you followed these courses up to today , now you should have a good knowledge about blockchain industry and how market behaves. I know most of you love to do an investment in crypto currencies. But when deciding which currency you should invest ? , you have to consider lot of factors. So today I'm going to discuss the fundamental things we should consider before investing in a particular crypto currency.
Want to invest ? Where to invest ?
This is the question every investor need the answer. Which crypto currency should I buy , when should I buy it and when should I sell it. These are the basic three questions which you need to find answers to gain a profit through a investment in a blockchain based project. It's a really hard decision to make. But through a proper research on a particular project , we are able to predict the future of that project up to some extent. There are lot of factors we need to consider such as project concept , use case of the product or service , competitors , target market , trading volume and exchanges , team members , project partners etc . As you can see there are lot of factors that need to be considered. This decision will decide the profit or loss you will gain. So it's very significant to learn how to select the crypto currency which you should invest.
Every investor is looking for great profits. So pro crypto investors always conduct a fundamental research before investing in a particular coin. So let's consider how to conduct a fundamental analysis on a crypto currency. The objective of this analysis is to discover the potential of the project in future. Fundamental analysis basically consider the factors I have shown in the above diagram. There are lot of scam ico's ( Initial Coin Offerings ) and unstable projects in the market. So through a proper fundamental analysis we can detect those projects easily and avoid investing in them. White Paper of a particular project is the best document to take the idea of blockchain project. It's the business plan or the concept of the project. All the details including the purpose of the project , the road map , the team , partnerships , business plans etc. are included in the whitepaper. So as the first step you should go through the whitepaper of the project and get a general idea of the project. Following are some of the whitepapers of leading crypto currencies. Generally official website of the project provides whitepaper for public view.
You can very easily find the white paper of a any project on internet. You must always have a proper idea about a particular blockchain project before investing your money in it. I'm sharing some videos I found on youtube which explains how to do a fundamental analysis. Different investors follow different techniques for this.. it's always important to learn every technique. Knowledge is money !
source : https://www.youtube.com
source : https://www.youtube.com
Please go through these two videos which will help you to get a full idea about how to conduct a fundamental analysis on a particular crypto currency.
Just 4 Steps
Project Vision : What is the project vision ? Do the project concept find the solutions for the actual problem?. Will it be a successful solution for the problem ?. You will find the answers for these questions in the project white paper.
Product : When you can keep your trust on their vision , then you need to look at the product of the project. Does this product actually works ? How it will be a solutions for the problem ? Is it sustainable ? To find answers for these question you need to get a overall idea about the problem , current situation , current solutions etc.
Team : Do the team have the ability to develop this concept ? Their experiences in this industry ? Their educational and technical backgrounds ? You can easily find these information on their website. But always check on LinkedIn and other social medias. Some scam ICO's create fake profiles for team members.
Market : If you agree with all three factors above , then check the status of the market. Check how this currency will behave in the market compared to other competitors.
So these are the basic things you need to check. This is called a fundamental analysis of a crypto currency. There are lot other factors .. but at least you should check these before investing in a particular project. It will save your money and avoid you from investing in scam projects.
Homework Task 6
You need to do your own fundamental analysis and select the a crypto currency to invest in 2021. ( coinmarketcap.com : Token Rank Should be between 100 - 400 range | ( Excluding Steemit) )
Prepare a article explaining the factors you considered for your selection considering followings
1. Read the project whitepaper and explain the project concept
2. Discuss the social reach , project purpose , team , response from the market for the particular project.
Discuss the factors supporting your decision and explain why the particular project will be a good investment.
• Your homework post should be posted in crypto-academy community.
• Your article should be at least 300 words.
• You have to create a simple guide in a way a newbie can understand and follow the steps.
• No plagiarism please . You can use images taken from copyright-free sources mentioning the source.
• The final submission date will be 21/03/2021
• Add tag @besticofinder in your post, it will help me to find your submission. Use #cryptoacademy and #besticofinder-week6 , so that Steemit Team can find you.