Lecture 1.0.0. How to Select a Crypto for Investment
The main question that every crypto investor usually asks is: “How do I know which crypto to invest in, considering that the Crypto Market is teeming with many coins and tokens?”
There are two methods you can use to select which crypto to invest in:
• First Method: Survey Technique
This is a simple technique that requires the surveying of market capitalization to pick the right cryptos to invest in. It has been discussed in Class 5 of the Secondary SOC.
• Second Method: Analytical Technique
There are new cryptos that are being created every week. Some of these new cryptos have better use cases and will yield better financial results than some of the Top 20 cryptos with the largest market capitalisation (mentioned in the Survey Technique). Investment in just one of these new cryptos can dramatically turn your finances around!
How do you know if these new ones have good prospects? The answer is that you will need to analyse the crypto project in order to know if it has good prospects.
Various people use different techniques to analyse a crypto. The School of Cryptocurrencies (SOC) has developed a Crypto Scorecard that you can use to safely evaluate any crypto and tell how such a crypto will perform within 4 years. See Table 1.