You see the word DYOR 👨💻 literally everywhere, but no one will tell you how to do it🙄. So here we are to help you out😎!!
This is going to be a complete guide on, How to do your own research? 🤔Everybody invests in BTC, ETH, LUNA, SOL, AVAX, MATIC, etc. these are the blue-chip coins, which keep your wallet safe from volatility📈📉. But for you to get that “Next big thing” 🎁 you need to dig in deep.
This is my personal strategy
Step 1: choose a token that has an ecosystem around it.
Do you realize most of the Blue chip tokens/coins which I’ve mentioned above have an ecosystem🌍around them? It means DAPPS and DeFi protocols can be built around it & any transaction happening on that particular blockchain, gas fees must be paid, which is in their native token.
For Eg: If I do a transaction on Pancakeswap on the Binance Smart Chain network, I’ll have to pay gas fees in $BNB (Its Native token)
So, I personally look for those tokens, which have an ecosystem around them.
Step 2: choose coins/tokens with their CoinMarketCap 👛 ranking from 100 to 200.
My risk appetite is very small 😐, if you are ready to take more risks, you can go even higher⚡.
Step 3: Read the whitepaper 📃
Nope, not the whole, if you want to know about that token/ecosystem, you can just YouTube “WHAT IS XYZ..”, you will get some amazing & informative videos.
( if you want us to create videos 🎥🎬on the same, you just have to comment 😁and let us know, alright?)
Just check their token’s distribution ✡, how much was sold in public sale, how much of the supply do VCs hold, and most importantly their vesting period. (VCs have some lock-in 🔐period, where they cannot sell the tokens they hold, as soon as the period is over, most of the VCs tend to sell🎯, so eventually the token price goes down. So you wouldn’t wanna buy when their vesting period is about to end🥳)
Step 4: Check their TVL (Total Value Locked)
Most of the ecosystems are judged by their “No.1 Money Market’s TVL” (lending and borrowing protocol), the higher the better because as more people lock in their crypto in any money 🎟 market, it means they trust 🤜🤛that protocol and they will be in and around that ecosystem for a long time which is actually good for the ecosystem’s native token.
For eg. On the polygon network, AAVE is the No.1 money market, which has a TVL of $1.24 Billion, if this increases, then there is a high chance that the price of the polygon will increase and vice versa.
One more way to look at this is, if the price of $MATIC increases, then the TVL of the money market increases, due to which the price of their native token $AAVE increases 📈.
[ You can check these out in DeFi llama https://defillama.com/chain/Polygon ]
Step 5: See the Bridge Analytics 🎢.
Bridging means, transferring your crypto from one network to another🎇 . Most of the time, especially in a bear market, there is no new money coming in. People are diverting 🎆 their already invested money into different protocols. That is when we should see the bridge analytics.
For eg., You may have $USDC on your Polygon network but you want to invest in some protocol on the Fantom network, so you simply bridge it, and it will come to your Fantom network. If more money is flowing into the Fantom network, the price of $FTM will rise and so will its DeFi protocols.
You can use https://analytics.synapseprotocol.com/bridge for your research.
Well, this is just Part 1,
Part 2 will be released next week, both the parts will definitely make you a crypto maestro🤖👽, so don’t forget to hit that subscribe button.
Namaste 🙏🙏🙏.
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