HOW TO ANALYZE A CRYPTO CURRENCY BEFORE INVESTING YOUR MONEY IN IT!!!

 

CRYPTO 104

HOW TO ANALYZE A CRYPTO CURRENCY BEFORE INVESTING YOUR MONEY IN IT!!!

Please this is not a Financial advice, it is meant for Educational Purposes online.

By my Training and Experience in Crypto Currency, I CEO BJ (An Entrepreneurship Development Expert) hereby transfer the same knowledge I gain to anyone that reads this material.

The Most Powerful tool as a beginner to analyze a Crypto Currency, before committing your hard earn money in it, is www.coinmarketcap.com

Fig 1

1.     CIRCULATING SUPPLY: This is the quantity of the coin that is in circulation

For Educational Purposes, if you Multiple the Circulating Supply with the current prize of the coin in the market, you will get the MARKET CAP

Fig 2

 

If you place your cusor at the point the arrow is showing in fig2 above, you will see the percentage of the coin in the market, The Maximum Supply and also the Circulating Supply which I have defined above.

MAX SUPPLY: This is the maximum of the coin that can be mined. The coin is not meant to exceed the maximum supply throughout its life span.

I am using Bitcoin, which is number one in coinmarketcap for this illustration.

WHAT DO I NEED THE ABOVE INFORMATION FOR

A.   The Coin is capped (Has a limit to its mining), that means it will not be affected by inflation.

B.   The number of coins already in circulation is 89.54%, so what is left to mine is 10.45%. Even if they are all released into the market at the same time, which is not possible, it will not be able to crash the coin more than 10.45%

C.   This shows that is a STORAGE OF VALUE coin, meaning you can save your fiat money with such a coin.

 

 

FURTHER INVESTIGATION IN COINMARKETCAP

Click the name of the coin to see more analyzes.

Fig 3

The reason for clicking the coin, is for us to see the block chain explorer. Every coin runs on a blockchain. The blockchain explorer shows us the ledger of the coin, we will see how busy transaction goes on the blockchain, we will see both sender and receiver address, but we will not be able to know who the person is. That is the beauty in the transparency. It is transparent but secured.

In some explorer, you will be able to check the COIN HOLDERS, this is key for your analysis. In other coin, you need to google like this “how to check for the percentage coin held by individuals in (put the blockchain name here)”

This will reveal the percentage of the coin held by individual.  If an individual holds so much percentage of that coin, please do not invest your money on it, unless you want to gamble.

There is a popular coin now, people are rushing, I checked the percentage of coin held by individual, and I saw

Fig 4 

A single address/individual or group holding 99.677% of the coin. That is not a fair launch. Any day the coin goes high, his greed to exchange will crash the coin. So is not worth your investment.

 

TWO TYPES OF LAUNCH OF CRYPTO CURRENCY

1.      Fair Launch

2.     Pre-Launch

Fair Launch: This is the best of crypto Launch, Bitcoin is an example of a Fair launch. It was the day it was launched, that they started mining Bitcoin. He even encourage others to mine with him. So they coin is evenly distributed without any individual or group having a greater percentage of the coin.

Pre-Launch: This is a situation where the whole coin is mined before launch, and it is being offered to the public as ICO. The challenge with this, is that a lot of coin will be allocated to big investors and perhaps the company directors who were involved in the mining

Please if you want to invest on such coin, first check the COIN HOLDERS, and secondly check the WHITEPAPER (This you can see beneath the EXPLORER in coinmarketcap, when you click the coin you are analyzing). The whitepaper will tell you how the allocated coin will be released in the market. If there are no strict restrictions on releasing the coin at the same time, please do not invest in such coin, unless you want to gamble. Please gamble what you can forfeit because of BP (High Blood Pressure)

I will not want to overload you guys; I will continue the lecture by weekend.

This Crypto Lesson will continue, in my whatsapp group for educational purposes. You can click the link below to join https://chat.whatsapp.com/DRJoaQh5TRd0gRcvqqZECw

 

I remain CEO BJ (An Entrepreneurship Development Expert) whatsapp @ 08034453005 or +234-803-445-3005

 

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