Summary of currency selection logic and information sources for beginners
1. Coin selection logic
1. Basic information of currency:
Total amount of currency
Circulation market capitalization ranking
Historical high and low price
Price rise and fall, trading volume
Exclude currencies that have fallen for a long time and have no significant increase
2. Project white paper:
Get an in-depth understanding of the currency issuance mechanism, equity distribution, usage, total token amount, lock-up period, whether there is additional issuance, long-term planning, etc.
Evaluate the number of pure internal holdings of project personnel and recommend that it be less than 25%.
3.Exchange and wallet support:
Check whether the currency is listed on mainstream exchanges and whether it can be transferred to mainstream digital currency wallets.
The currencies of mainstream exchanges are usually audited and have high credibility.
4. Community construction and maintenance:
Observe the currency’s fan groups and official community activity, including Twitter, official accounts, WeChat groups, Weibo, etc.
Evaluate whether community managers proactively address issues and promote publicity and maintenance.
5. Team and investor evaluation:
Check the history, background, and achievements of the founder and founding team to avoid choosing a team with a bad record.
The strength and credibility of the investor are evaluated but are not decisive factors.
6. Open source code and updates:
Analyze the currency’s open source code and code updates, and evaluate the technical level and activity of the project.
Pay attention to whether the project is exaggerated and publicized, and avoid choosing a project that is only a concept without actual implementation.
7. Personal values and long-term investment:
Only invest in currencies that you recognize from your heart, and this recognition is based on your own values.
Choose currencies that conform to long-term investment concepts and avoid frequent transactions and short-term interests.