More about crypto coins and investments

December 2021. A beautiful month, quite warm outside for this time of year, only good for making money. Today I want to talk about all types of cryptocurrencies and yields (plus, how you can analyze a coin).

Already over 15,000 cryptocurrencies have been launched (most of them useless).

1. Payment currencies: these are used to pay for services and goods. The most known: BTC/ LTC/BCH

2. Blockchain economies: known as blockchain platforms, besides the payment function they also take over blockchain technology. These platforms allow you to create digital assets (tokens), decentralized applications (Dapps), plus much more. Therefore blockchain platforms become their own economy containing tokens, applications and more (too many technical details).

MOST KNOWN : ETH/ETC/EOS/NEO/TRX

3. Privacy coins: some digital assets put a premium on privacy, the number transferred or the address balance can only be known by the initiator of the transaction and the beneficiary. This is the opposite of the transparency that Bitcoin offers us for example.
the most popular : ZEC/XMR/PIVX

4. Utility tokens: run on the second category described (blockchain economies) and are based on a product or service. Most of them are ERC-20 and run on the Ethereum blockchain (most expensive, I prefer BEP-20 or TRC-20). An example of a utility token is Golem (GNT), this project offers a platform from which you can borrow computing power for memory intensive tasks.
most popular : BAT/CVC/OMG/ZRX

5. Stablecoins: we all know their function, but did we all know that before listing a stablecoin can have a value below 1? If we have the opportunity to participate in certain stablecoin pre-sales before reaching this value, we know for sure what the outcome will be.
most popular : USDT/USDC/DAI/GUSD/PAX/TUSD

6. Useless coins: these appear overnight and disappear just as quickly, they are listed on DEXs and take advantage of people’s naivety.

All of these are divided into 145 categories:

• Transport,
• Video,
• Logistics,
• Retail,
• Real Estate,
• the most important in my eyes are Web3 and Metaverse
  (source : https://coinmarketcap.com/cryptocurrency-category/).

You’ve all heard of the idea of “hold” and “DCA“, I’d like to dissect them a bit, so any of you can see things from a different perspective.
Hold represents holding a cryptocurrency for the long term, but the question comes, how long? Let’s look into the past, the idea of a hold was born with the bullrun of 2017, then a lot of investors hit the first major drop on a purchased coin, understanding that selling at a loss is futile and as time goes by the value of that coin will increase. Being a thin line between profit and return, yes, all solid coins will hold and have held over time, all coins that held then, have brought subsequent profit and very high returns, then comes 2020, very important.

The COVID is coming, every American is getting a government handout and a lot of young people have been looking for high returns, so they’ve turned their attention back to the cryptocurrency market, an extremely important moment that will be followed by the emergence of countless projects, which may or may not have had any real subsequent utility.

September 2020 may be noted in the calendar as the beginning of the second major bullrun, a bullrun that seems to differ from anything in the past. Bitcoin rises unabated on the 1L timeframe until March, then April, June, July are down months, comes July and August, two very profitable months, then September which showed us a small correction,

October presses the accelerator pedal and the ATH of 69k is reached, in November comes an 8% drop and we wake up in December, with Bitcoin at 51k (at the time of writing), although it has gone up to 42k, a very important threshold, the crowd is asking in panic, “has the bearmarket started? “, no, El Salvador as the name says, saved us this time and we are hopeful that Bitcoin will complete its cycle by March 2022, we need to see a new ATH, that 100k that all the big crypto fans are waiting for and as I said a few months ago, we will get it.
But then what? Will the hold still be profitable?

Of course, only if people will withdraw their money at the end of the bullrun and wait until the market bottoms, it is very possible that we will see all cryptocurrencies at below 60-70%, many of them will disappear, there will be a turmoil, but those who will remain calm and know how the market works, will profit from waiting for the next bullrun, as I said, buying the deep.

The return is something else entirely, the total detachment from the market and the strict pursuit of profit, the constant pursuit of new opportunities and the analysis of the potential of each cryptocurrency, as you know, a cryptocurrency in the top 20 will not have the same return as one ranked 100 for example, because it has much more money invested in it, and the growth is unequal percentage, if 100 billion will be put into ETH you will make 20%, if they will put into Siacoin it will make 10. 000% ROI, always calculate potential, not notoriety, potential combined with analysis will always bring much higher returns (the amount is fictitious, Siacoin will probably never get 100 billion, but you can apply a realistic calculation of a few million and it will still have higher ROI).

Why do I say that DCA is the worst strategy?

Think about the bearmarket catching you, you lose 70% and never get out, invest 2 years say, you started in May, after a year, you are almost at the same point, the real calculated ROI will be extremely low, yes, over a longer period, you can double, triple your investment, but there is a chance that your cryptocurrency will disappear or stop growing in the next bullrun. Look around, now gaming and Metaverse dominate, how sure are you that any cryptocurrency today will still be in investors calculations in 2 years time? We are living in a unique moment, we can’t rely on the past, because the world is evolving way too fast and too many amazing projects are coming up, the money will be distributed completely differently, don’t get hung up on the idea, open your eyes and follow the trends.

How do we analyse an ICO/IDO? (initial coin offering/ initial dex offering)

1. the website has to be set up, if we want something professional, the endings that do not include .com or .io, should raise a question mark
2. a well prepared whitepaper, from the smallest technical details to a more detailed plan, preferably spread over a longer period of time (many, many projects steal another project’s whitepaper or create a superficial one)
3. analyse the team, as much as you can (what projects they have already developed, what previous experience they have, who they are as people and how they got there, absolutely everything)
4. analyse the sponsors, who they are, why they invest in the project, how much they invest in the project and what is the purpose of the investment
5. analyse the product/service offered, how useful it is, what is the potential of the niche in which it will be listed, what competitors it has
6. analyse if there is a serious company behind the project
7. analyse the details related to the number of coins, their distribution and the evolution of the distribution (how many years it will last, for what purpose)
8. analyse the purpose of the project, what they will do with the money once they get it
9. analyse everything related to social media and their presence there, the marketing they have done and the real number of daily followers, not fake, bought, you can tell by comparing
10. the number of followers vs the number of reactions (twitter, discord, medium, other sites)
11. analyse what other projects say about it or what is written about it on the internet
12. any serious presale will include a KYC check
13. a serious project is not only listed on Uniswap or PancakeSwap
14. a serious project does not offer airdrops from the start
15. a serious project doesn’t give you benefits over others if you put in more money
16. a serious project never copies an existing idea
17. a serious project gives you the feeling that it is serious as soon as you write an email to the CEO and he answers any question (just kidding, he doesn’t have time for that, if he answers you, especially quickly, ask yourself some questions)

An analysis like this takes days, but it will be worth it, because at the end, you will be left with only one project out of a hundred (I for example found only two projects in six months).
The return on an ICO/IDO is much higher than investing in an already listed coin (risk equals quality of analysis).

I await you in private with suggestions for further posts. I hope each of you will reach your financial goals one day.