Do Your Own Research

Distinguishing a gem from a shitcoin might be very difficult and in times of growing market and FOMO (fear of missing out), it’s easy to get tricked by guaranteed investment tips from famous influencers or even your surroundings.

Shilling is a common practice in the crypto industry where people tend to promote the coins that they own in hopes of positively affecting the price. Equally, the developers who’re building the projects usually tend to invest in massive advertisements to support the hype around their coin.

However, when purchasing any coin or token, you should always make the decision based on your own research, and not just because someone else has said it is worth it.

Technical analysis

Technical analysis helps you evaluate investments and identify trading opportunities by analyzing market-related data such as price movement, volume and market cap growth.

CoinBrain⁠

provides you with the basic data for all Ethereum, Polygon, BNB Chain, XRPL, Base, Fantom, Arbitrum, Avalanche, Optimism, Aurora, ZKsync, PulseChain, Blast and Celo coins which can be used to generate short-term trading signals or validate your hypothesis about the traded pair.

Fundamental analysis

Fundamental analysis is a method of evaluating the intrinsic value of an asset and analysing the factors that could influence its price in the future.

When examining a coin or token fundamentally, you should be mainly focused on their product and the problem they’re solving with their cryptocurrency, the team behind it, the project history, but also the whole segment and their competitions.

How much to invest

Remember, that the whole crypto segment is extremely risky and can lead to huge losses. You shouldn’t invest more than you can afford to lose. Definitely do not invest your rent money, grocery money, or college tuition.

Investing just the amount of money that you can lose will help you keep a clear head about your investment choices and not make emotion-driven decisions.

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