Do you want to stock up on certain currencies during a bear market, but you don't know where to start? Today, we will share with you the characteristics of the best currencies to hold during a bear market, and show you how to choose them. After reading this article and understanding these characteristics, you will be able to invest smoothly!
Project Team
Whether the project is a decentralized app, GameFi, or a public chain, it's important to check out the founder's background team.
If there are people in the team who have been involved in Rug Pull, Escape with money, etc., how reliable is the project? As an investor, the reason why we want to choose a reliable project is because we want to have professionals to "manage" the project. If there is nothing in the team's background that can be scrutinized, it's basically the same as gambling because there is no basic basis for it.Is the team's background trustworthy?。
Also, when reading the White Paper, see if the solution proposed by the team is logically sound and if the Roadmap planning for the next few years is reasonable.
Possible Background Areas
The Financial context
The Engineer Background
The Startup Experience
The Encryption Industry Work Experience
Amount of Funds
The project's bullet bank is of course very important! It's true that more money is better, but do you know why?
Capital management is one of the ways in which project owners manage their resources to ensure that the business is sustainable and has sufficient operating cash on hand.More capital means more ability to maintain expenses in a bear market, of course.This is also related to short-term expenses such as the payment of wages.Get more or better engineers to come back and continue R&D,Organize activities to give back to the communityLong-term strategic investments, such as the project sideOne of the ways to continue to enhance the value of the project itself.
That's why credentials are really important!
livre blanc
There are no clear rules on what should be included in a white paper on cryptocurrency, but at the most basic level, it should clearly set out evidence-based research, analysis, security, so that investors can easily understand the value of the project, and more importantly, what problems it is intended to solve.
To the editor, the basic information in the white paper should ideally include: currency name, team background, project concept, operation structure, and future direction.
When reading the White Paper, the investor should be clear about the real function or purpose of the program. For example, what does the technology actually do? Does it create a decentralized application?
If after reading this you are still unsure about the usefulness of the program, then there are two possible conclusions:
1. this program is so advanced that you need more knowledge to understand it.
2. the project hasn't really done anything yet.
use
Different currencies have different uses, but since a certain level of knowledge is required to understand the token economy, many people will take advantage of the opportunity to fish in troubled waters. If the cryptocurrency issued by the project has nothing to do with the solution itself, for example, if it is simply issued to raise funds, unless the project has clearly stated the use of the cryptocurrency at a later stage, we can estimate that the cryptocurrency may not be worthwhile even if the project develops well in the future.
The token economy is an important factor affecting the use and value of tokens:A well-developed economic model of tokens is the key to success.。
In the case of a token economy, we have to look at該RMBLocked or unlocked statusas well as itWhat percentage of capital is flowing out of the country?Unlocking status The unlocking status depends on whether there are still a large number of coins to be unlocked during a bear market. Most ICOs have an unlocking period of about 2 to 5 years, and if this type of new coins meets a bear market during the unlocking period, it will have a great impact on the price of the coins, and the main reason is that the demand has not kept up.
The other type we can look at is the coin itself.Locked Position RatioorMobilityThis type is usuallyCurrencies belonging to the POS systemOnce a position is locked up, it will not be liquidated, which means it cannot be taken out and sold again for a certain period of time after the position is locked up.
We can utilize Coinmarketcap Find out how many currencies are in circulation by looking at the Circulating Supply provided on the Messari You can understand the movement of funds and the lock position. The higher the percentage of locked positions means that people have more confidence in holding him for the long term, which is also an important part of the bear market indicator can survive the key, but it does not mean that the project will be a success, so do not get it wrong.
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