A Detailed Approach to Cryptocurrency Investing Introduction Investing in cryptocurrencies requires careful analysis to maximize the chances of success.
In this article, we will explore the importance of in-depth analysis before making investment decisions. We will understand how to identify critical points and mitigate risks, analyzing the pillars of Business Model, Tokenomics, Governance and Security . Additionally, we will discuss the ongoing need to track selected assets and how tracking the Ouroboros community can simplify this process.
The Purpose of In-Depth Analysis When considering an investment in cryptocurrencies, it is essential to examine the reasons not to invest in a particular asset. This detailed analysis helps to limit the size of the allocation, if an investment decision is made. The objective is to discover what we don't know about the asset and identify possible "black boxes" that could make the information confusing and non-transparent. These are warning signs that indicate possible problems.
During this stage, we may find discoveries that are not large enough to completely avoid an investment, but that help us define which tokens we should acquire with a greater or lesser proportion in our portfolio. In addition to evaluating the Business Model and Tokenomics, we also analyze the other two essential pillars:
Governance
Governance is crucial to understanding the development team behind the protocol. We look for competent teams and avoid anonymous teams or those with an unsatisfactory delivery record. We evaluate governance transparency, community participation, and the ability to make important decisions for the continued development of the protocol.
Security
Security is a fundamental concern in cryptocurrency analysis. Our goal is to identify possible errors that may occur in the protocol and that may not be considered by the rest of the market. To do this, we look for primary sources of information, such as the Token Terminal, Dune Analytics and even the project's Discord channels. This in-depth research helps us identify potential vulnerabilities and make informed decisions.
If the analysis does not reveal critical points of failure, the protocol is likely to be added to our portfolio, with an allocation corresponding to the analysis of the four pillars.
Track the Asset
Ongoing monitoring is as important as the initial analysis. The cryptocurrency market is constantly changing and evolving, which means that no analysis can be considered complete. It is essential to stay up to date with the dynamics of the sector in which the asset is inserted. This involves evaluating new emerging protocols, comparing competing solutions to address market needs, and monitoring the growth and adoption of the protocol itself.
To carry out this monitoring, we use the same sources mentioned in the cryptocurrency choice stage and also in the analysis stages. Staying informed about the latest trends and developments helps us adjust our investment strategy and stay on track.
In summary, following these four steps - in-depth analysis, business model and tokenomics assessment, governance and security, and continuous monitoring - we arrived at Ouroboros' portfolio allocations. To have access to the entire process of formulating an investment thesis, monitoring and, of course, the final results that represent the simplification of the cryptocurrency market, our work at:
FAQs (Frequently Asked Questions)
How important is in-depth analysis before investing in cryptocurrencies?
In-depth analysis helps identify critical points and mitigate risks before making investment decisions.
What are the pillars of analysis when evaluating cryptocurrencies?
The pillars of analysis include Business Model, Tokenomics, Governance and Security.
How is ongoing monitoring of cryptocurrency assets carried out?
Continuous monitoring involves evaluating changes in the market, the emergence of new protocols and monitoring the growth and adoption of the chosen asset.
How does Ouroboros simplify cryptocurrency investments?
Ouroboros offers access to qualified information and a community that provides detailed analysis, constant monitoring and simplified results of the cryptocurrency market.
How can I get access to all available information about Ouroboros cryptocurrencies?
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