Crypto Investing in a bear market | by Rohas Nagpal | Blockchain Weblog

We’re within the midst of an enormous Crypto crash. So what ought to a brand new investor do?

We’re within the midst of an enormous Crypto crash. Right here’s how a lot the highest cryptos are down as in comparison with their All-Time Highs.

• Bitcoin is down 63%
• Ether is down 72%
• BNB is down 65%
• Cardano is down 85%
• Solana is down 89%
• Dogecoin is down 92%
• Polkadot is down 87%

I deal with pre-listed sturdy initiatives with stable prospects and I take advantage of the ROHAS methodology to guage new crypto initiatives.

Within the ROHAS methodology, you might want to grade a crypto challenge on 5 parameters:

• Income
• Group
• Historical past
• Algorithm
• Social

1. Income

Perceive and analyze how the challenge generates revenues for the ecosystem and what’s the world financial influence of the challenge? This info may be obtained from:

• the official web site of the challenge
• the White / Mild / Yellow / Beige Paper of the challenge

Based mostly in your analysis, grade the income mannequin of the challenge on a scale of 1 to five.

2. Group

The group / group (founders, dev, enterprise) should be highly-skilled and have sturdy prior expertise, sturdy credibility, and optimistic social media standing.

This info may be obtained from the LinkedIn profiles of the group members. Be cautious of initiatives with nameless groups.

Based mostly in your analysis, grade the group behind the challenge on a scale of 1 to five.

3. Historical past

The challenge should have proven sturdy development in:

• Transaction quantity
• Lively customers
• Buying and selling quantity
• Liquidity
• Commerce pairs

Based mostly in your analysis, grade the historical past of the challenge on a scale of 1 to five.

4. Algorithm

The consensus mechanism and know-how platform should be strong. This info may be obtained by an evaluation of the challenge’s GitHub repositories.

Based mostly in your analysis, grade the consensus mechanism and know-how platform of the challenge on a scale of 1 to five.

5. Social

The challenge should have a big, vibrant, energetic, engaged, optimistic group with a justifiable share of fanatics. The foremost social platforms are Discord, Fb, Instagram, LinkedIn, Medium, Reddit, Telegram, Twitter, and YouTube.

Based mostly in your analysis, grade the social group of the challenge on a scale of 1 to five.

Crimson flags

I keep away from initiatives the place:

• Any ROHAS parameter is under 3.
• The challenge appears too complicated.
• There may be sustained damaging publicity across the challenge.

Disclaimer: I’m not a registered funding, authorized, tax advisor, or dealer/vendor. All funding / monetary / authorized opinions expressed by me are supposed as academic materials. You need to contemplate in search of unbiased authorized, monetary, taxation, or different recommendation to verify how the knowledge pertains to your distinctive circumstances. I hyperlink to or consult with exterior sources to your comfort. I’m selective about them however I don’t endorse them.

This submit was first printed within the Crypto With Rohas publication: https://rohasnagpal.substack.com/p/crypto-investing-in-a-bear-market?s=w