A Complete Guide On How To Do Research in Crypto!

Education 8 August 2022
A Complete Guide On How To Do Research in Crypto!

If you have even the slightest inkling of crypto and have yearned to profit from it, considering the hype that has taken the world by storm, you must be no stranger to researching it online. With so many sources, material and technical jargon, it is no easy feat to do your research. Where do I even begin, is what many have often asked us, and so we decided to break it up for you so that you know how to research crypto like a pro.

The best approach is to break your research into modules.

1. Technical understanding

Technical understanding is all about having a sound knowledge of how the technology that you put your money into is working at the back end. Researching the basics of how something actually works is time consuming, but it will have great benefits in the long term such as higher profits and more effortless navigation in the space.

To give you a basic starter pack of where to start from, you first need to evaluate your existing knowledge. Here’s are some lists for everyone, wherever your skillset lies:

Beginners:

  • Encryption in crypto
  • Web3 and how it works
  • How different cryptocurrencies operate, for example BTC, ETH, BNB, and SOL
  • Hot wallet vs cold wallet
  • All about ETH’s merge
  • Yield farms
  • Consensus Mechanisms, for example Proof of Stake and Proof of Work

Intermediate:

  • DEX vs. CEX
  • Liquidity mining
  • Pool 1 and Pool 2
  • Basic tokenomics
  • Layer 0, 1, and 2
  • Impermant loss vs slippage vs staking

Experts:

  • Advanced tokenomics
  • Governance Proposals
  • Differences among L2 Roll-Ups

These lists are in no way exhaustive. However, they will give you a good place you can take your initial launch from to begin research in this domain. The best rule to remember while doing research on any of these is always to start from the main sources first for example the Bitcoin or Ethereum. Next, to develop more understanding, you can follow with blogs and videos.

2. Earning Skills

Not everyone aware of cryptocurrencies has been able to draw even a cent’s profit from it. To make profit, you must know some basic earning skills such as decision making, risk management, how to make your portfolio, and some basic trading psychology is always a bonus.

A great rule in investment is to always juice out profits when you have made twice that amount. Let money make money.

3. Crypto skills

An advantageous thing to have in your knowledge toolbox are some crypto skills that are specially relevant to investment and crypto portfolio building.

Discover different protocols that are being followed and in the development phase. Some places that are a good start are through connections, top twitter accounts based on crypto, DeFiLlama, and keep a close watch on what VCs (Venture Capitalists) invest in at present.

You may also track whale wallets, which are basically wallets of people who hold a large amount of a particular cryptocurrency, enough that their movement may influence its trends in the market. Some good tools for this purpose are Nansen’s Smart Money feature and Debank. You can even create your own list of whales; here’s how:

  • Find a token with a large amount of smart money, such as GMX
  • See who holds the most amount of that token
  • Use Zapper FI to search their wallet addresses and see what they hold

The idea behind this detective work is to have an edge by knowing whale movements so that you can make quick decisions based on that information and then gain huge profits before most people.

Remember, the rule of thumb here is to practice, and soon you’ll be an expert in the trick of the trade.

4. General learning areas

Finally, no crypto study would be complete without knowledge of broader subjects that surround it such as macroeconomics.

Some areas to begin with are:

  • Finance
  • Accounting
  • Cryptography
  • Risk management
  • Market history
  • Behavioral finance

Remember that you just need to know the basics of each of these. Even too much study isn’t the best idea because it may hold you back from getting started as you will never feel that you know enough.

To conclude, once you have sufficient knowledge of these, you will have no problems in navigating any space in the crypto world, be it DeFi, NFTs, GameFi or basic cryptocurrency investment. As the applications are enhancing, crypto has widened its branches into many further areas and it has become impossible to keep up with each of them. Hence, once you know the basics, you can choose which domain you want to dive deep into. Avoid falling into the traps of FOMO, and get learning!

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