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

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

We’re within the midst of an enormous 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 deal with pre-listed robust tasks with strong prospects and I exploit the ROHAS technique to judge new crypto tasks.

Within the ROHAS technique, it’s good to grade a crypto challenge on 5 parameters:

Income
Group
Historical past
Algorithm
Social

1. Income

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

the official web site of the challenge
the White / Gentle / Yellow / Beige Paper of the challenge

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

2. Group

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

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

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

3. Historical past

The challenge will need to have proven robust development in:

Transaction quantity
Energetic customers
Buying and selling quantity
Liquidity
Commerce pairs

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

4. Algorithm

The consensus mechanism and know-how platform should be strong. This info could be obtained by an evaluation of the challenge’s GitHub repositories.

Based mostly in your analysis, grade the consensus mechanism and know-how platform of the challenge on a scale of 1 to five.

5. Social

The challenge will need to have a big, vibrant, energetic, engaged, constructive group with a fair proportion of fanatics. The key social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.

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

Pink flags

I steer clear of tasks the place:

Any ROHAS parameter is under 3.
The challenge appears too advanced.
There’s sustained destructive publicity across the challenge.

Disclaimer: I’m not a registered funding, authorized, tax advisor, or dealer/supplier. All funding / monetary / authorized opinions expressed by me are meant as academic materials. You must contemplate in search of impartial authorized, monetary, taxation, or different recommendation to examine how the knowledge pertains to your distinctive circumstances. I hyperlink to or check with exterior assets in your comfort. I’m selective about them however I don’t endorse them.

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