Free resources for researching cryptocurrency
Trading cryptocurrency is a lot like gambling in Las Vegas casino. It’s highly speculative, moves quickly, the market is open 24 hours a day/7 days per week, and it can leave you with some of the easiest money you can make or some of the toughest losses that you‘ve ever stomached. When I refer to trading, I mean jumping in and out of the markets or switching between different coins constantly based upon technical analysis, hype, a friendly tip, or gut feeling.
Investing in cryptocurrency is different from trading. It requires strategy, research, and patience. This is not financial advice and I am not a financial advisor. I am also not a crypto trader. I consider myself an investor and my goal in this article is to share some of the resources that I use when investing in cryptocurrency. If you care to learn more about my strategies, please check out some of my other articles where I go more in detail about how I try to successfully invest in this space. Keep in mind that investing in cryptocurrency involves high risk especially compared to more traditional types of investing and it’s important to be responsible.
While investing in crypto is risky, the outsized potential rewards can not be mistaken. The market cap for the cryptocurrency market has grown nearly 10x since it’s March 2020 lows. Compare that to the Nasdaq which has gone up about 64% from it’s 2020 March lows. These outsized gains can no longer be ignored as the class becomes legitimized more daily through institutional buying, media and government attention, and more retail adoption. In my personal opinion, every portfolio should have some exposure to this burgeoning asset class.
Unfortunately, (probably like yourself )I was never trained on investing in anything. I do know that I work hard for my money and want to be prepared as possible to take advantage of these potential gains. Here are the websites and apps that I use consistently to help find and track investments.
Coingecko.com and Coingecko app: Coingecko is a free website and mobile app that tracks the pricing of over 6000 cryptocurrencies. Since I have cryptocurrency on different platforms, exchanges, and wallets I can manually enter my trades on Coingecko (after creating a free account) and have instant access to my entire portfolio. Additionally, Coingecko has graphs, links, and data that are all easily accessible from both desktop and mobile alike.
Some of the data that I find most useful on Coingecko is looking at the global market cap (top of page/app) which adds the market cap of all 6000+ coins. It allows you to quickly see if the markets are up or down. I also like to check on Bitcoin dominance that is featured right next to the total market cap. This ratio tells you what percentage of the overall crypto market is Bitcoin and Ethereum compared to other altcoins. If you consistently follow the dominance, you can easily tell whether altcoins are gaining on Bitcoin or if the King Coin is outperforming the market.
When you click on individual coins, you have access to a wealth of additional information. Some of the resources that I like to check are the price graph, the whitepaper/Medium links, total market cap, the exchanges where the coin can be purchased, and the circulating supply compared to the total supply. The price graph is pretty straightforward and it has some really easy shortcuts for customization such as 1 day, 1 week, 2 weeks, etc. The whitepaper is essentially the business plan for the coin and sometimes Medium articles or the website will explain the coin’s purpose in easier to understand detail. The total market cap is the coin price multiplied by the circulating supply. The exchange lists are important to me because I am in the US and don’t easily have access to many coins on centralized exchanges. The circulating supply versus total supply lets me know if there is a lot more dilution/inflation ahead for that specific cryptocurrency.
Another resource that I constantly monitor is the news. Crypto reacts to news and hype surrounding projects. Often the news will coincide with pops or drops in a coin’s price. Also, it’s a good idea to get a feel for what is happening in the crypto market. Keep in mind that all news is biased and you don’t want to be too reactive to news. Sometimes, an article will say Bitcoin is going to moon and a couple of articles below will say that Bitcoin is going to tank. The main site that I use is the news tab on www.cryptocompare.com. They aggregate news from multiple sources and update all hours of the day.
Getting new ideas for coins to research can be done by going down the list on Coingecko.com or from news stories that you read on www.cryptocompare.com. I like to get ideas from influencers on YouTube. I have found that the influencers can often shape the attention and temperature of the market. Unfortunately, you sometimes have to sift through the trash to get to the nuggets of gold. Many YouTubers will pump projects to line their own holdings in the coin or because they are getting paid to talk about a coin. This is why I try to focus mainly on blue chip coins (1 billion market cap or more). This is definitely more upside on the smaller coins, but if a major influencer has already discussed the coin, it has probably already pumped higher and I am too late for now. Sometimes they discuss projects that sound interesting and I will add them to my watchlist on Coingecko.com or research them further on my own and may purchase them in the future.
Some of the influencers that I follow on YouTube are Bitboy, Coin Bureau, Lark Davis, Crypto Daily, and Benjamin Cowen. All of these channels have hundreds of thousands of followers and are primarily dedicated to the crypto space. You may like these channels or others. I recommend that you pay attention to them and use it as a place to learn more about the markets and projects that may be worth researching and investing in.
Finally, you can find articles online on your own on sites like Medium or you can use social media websites. I have found reddit to be a good place to ask questions and get ideas. Keep in mind that some people are shilling their coins so you always want to research before making any purchases. I have also gone on Clubhouse and sometimes will ask questions to panels, but they are mostly about Bitcoin only from what I have seen.
This is an exciting time to get involved with cryptocurrency. There’s a lot of room for growth and opportunities to make a lot of money in a short period. Keep in mind that risks lurk and you never want to risk more than you can afford to lose. I personally don’t trade with leverage because the market is already speculative enough and it seems that patience can pay huge dividends. I wish you the best of luck and invite you to read some of my other articles to learn more about my approach and strategies. Thank you for taking the time to read this. I hope that it has been helpful.