{"id":21517,"date":"2023-12-10T16:15:50","date_gmt":"2023-12-10T03:15:50","guid":{"rendered":"https:\/\/cryptocurrency.org.nz\/?p=21517"},"modified":"2024-02-02T16:20:12","modified_gmt":"2024-02-02T03:20:12","slug":"crypto-research","status":"publish","type":"post","link":"https:\/\/cryptocurrency.org.nz\/guides\/crypto-research\/","title":{"rendered":"Crypto Research NZ | New Zealand\u2019s Ultimate Guide (2024)"},"content":{"rendered":"\t\t
Prior to committing to any crypto project, it is imperative to conduct your own crypto research \u2014 commonly referred to as DYOR (Do Your Own Research).\u00a0<\/p>
But what does ‘doing your own research’ truly involve? Where do you initiate the process? Which sources can you rely on? And how much research is deemed sufficient?<\/p>
Devoting time and energy to comprehend your\u00a0cryptocurrency investments<\/a>\u00a0is the foremost step toward becoming a successful in the crypto realm. However, the process is not always clear-cut. This guide aims to assist you at every stage of the research journey.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Related Guides:<\/strong><\/p> Setting up a Crypto Wallet in New Zealand \u2013 Beginners Guide (2024)<\/b><\/a><\/p> How to Buy Cryptocurrency in NZ \u2013 New Zealand\u2019s Crypto Guide (2024)<\/a><\/strong><\/p> Hardware Wallets NZ \u2013 New Zealand\u2019s Crypto Guide (2024)<\/a><\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t Spending hours on crypto research becomes futile if your information sources lack credibility. In the crypto space, opinions abound from various individuals, irrespective of their expertise. It is crucial to exercise discernment in choosing whom to heed.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Consider the following factors when assessing a source:<\/b><\/p> Industry Reputation: <\/strong>Are they well-known in the industry? Evaluate their track record for insights into their reliability (examples of reputable sources provided later on).<\/p><\/li> Audience Size: <\/strong>What is the size of their following? A substantial following often indicates more reliable information, as individuals with a large audience have more at stake when sharing information.<\/p><\/li> Website Legitimacy: <\/strong>Is the website a legitimate and established source? Opting for well-known news sites is a good practice to ensure information quality. However, skepticism is essential, even with reputable sites.<\/p><\/li> Financial Interests: <\/strong>Is the person providing information being compensated? Never assume that paid advice is impartial. Many crypto influencers receive sponsorship from cryptocurrency exchanges. Look for individuals that are transparent and honest.<\/p><\/li> Balanced Perspective: <\/strong>Is the advice or opinion balanced? Assess whether the source presents both sides of the story. The best crypto sources acknowledge the nuances, providing a comprehensive view with both pros and cons for any given project.<\/p><\/li><\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t As time passes, you’ll likely discover favorite personalities on Twitter or YouTube. While establishing trust and connection with someone is beneficial, relying solely on one source is a definite recipe for poor investment choices. No individual possesses all-encompassing information, and everyone is prone to errors at times.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t A whitepaper serves as a comprehensive document elucidating the technology underpinning a blockchain project. Typically authored by the project’s developers.<\/p> For an effective start to crypto research, delving into a project’s whitepaper is recommended. These documents can be found on the respective project websites; a simple Google search using the syntax “[project name] whitepaper<\/strong><\/em>” is usually sufficient.<\/p> It’s important to note that not all projects provide a whitepaper. However, the absence of one does not necessarily indicate a lack of investment potential. In such cases, conduct additional research on the team and their background before considering investment.<\/p> A well-crafted whitepaper outlines how a company intends to leverage blockchain technology to address industry challenges or advance their product.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t The developers constitute the driving force behind the scenes, responsible for actualizing project goals. Gaining insights into the developers is a crucial method to assess a project’s potential for success. Here are some key inquiries to make about the team:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Additionally, it’s essential to analyze the economic activity of the project. It’s self-evident, but it’s wise to reconsider investing in something that shows no signs of strength\u00a0<\/p> To assess a project’s economic activity, visit platforms such as CoinMarketCap<\/a> or CoinGecko<\/a>. There, you can examine the price chart for any fluctuations and overall activity.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t The circulating supply of a cryptocurrency represents the accessible coins actively traded. Often confused with the total (max) supply, which includes mined but unmined coins. Knowing a coin’s circulating supply is vital:<\/p> Market capitalization, by definition, represents the value of a network, computed by multiplying the current price by the circulating supply of coins. It stands as a crucial metric employed by investors to gauge the magnitude and vitality of a cryptocurrency.<\/p><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t In the realm of finance, liquidity denotes the ease with which an asset can be purchased or sold. A liquid asset is one that can be readily sold at its prevailing trading price, and a highly liquid market boasts ample buyers and sellers at any given moment.<\/p> Trading volume, on the other hand, represents the number of shares, contracts, or currency units exchanged within a specified timeframe, typically a day. It provides insight into the total value traded during that period. Cryptocurrency NZ orchestrates meetups across 11 cities in New Zealand, emphasizing our commitment to fostering crypto communities. Engaging with these communities is an excellent strategy to enrich your research, receive valuable advice, connect with like-minded individuals, and stay abreast of the latest developments in the crypto sphere.<\/p> Plus, who knows \u2013 you might even make a connection so profound that it leads to a “marriage by smart contract”!<\/em><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t Cryptocurrency NZ | New Zealand Crypto Meetups<\/p>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t On the last Wednesday of every month, Cryptocurrency NZ runs a series of in-person, unregulated meetups across NZ where Kiwis come together to discuss all things Bitcoin, Ethereum, cryptocurrencies, financial liberty, NFTs, DAOS and beyond.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Identifying Reliable Sources of Information<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Explore Diverse Perspectives and Viewpoints.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Approaches to Crypto Research (DYOR)<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
Study the Whitepaper<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Research the Developers <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Examine Economic Activities<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Circulating Supply <\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Market Cap<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Liquidity and Trading Volume <\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
When it comes to cryptocurrencies, well-established coins and tokens are likely to exhibit high liquidity, while those in their early stages may be considered illiquid, featuring low trading activity and potential challenges in selling these assets. <\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\tAttend Cryptocurrency Meetup <\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t