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Crypto Research Strategies 101: Guide to Making a Trade

A hand holds a handful of cryptocurrency while another holds a magnifying glass over it

New investors to the cryptocurrency space are often advised to avoid diving head first into investing without a little due diligence. Researching the viability of a cryptocurrency investment isn’t as easy as just checking the market. However, honing crypto research strategies is a skill that can be learned.

Understanding how and why a cryptocurrency project was created could determine whether and how much to invest. Each smart investor should develop their own crypto research strategies but there are some points to consider when learning about different coins.

Project Stages

First, smart investors want to determine at what stage to join an investment. Typically the earlier the stage, the less expensive the entry cost and the greater the risk. Cryptocurrencies have life cycles similar to businesses. To become an early investor, find coins in their first three stages.


There is no coin offering in the pre-production stage; investing here is akin to investing in a company before it has produced anything. Supporting the people or ideas behind a new project in its pre-production stage can be found on sites like ETH Global.

Token Launch

The token launch stage is the period in which the coin is first offered to the public. This stage can also be known as the initial coin offering (ICO), initial exchange offering (IEO) or initial DEX offering (IDO). Investors might find announcements about new offerings on most exchanges and launchpads like Polkastarter.

Early Traction

In the early traction stage, the market price of a new offering often starts to stabilize and could gain momentum. Investors can look for coins launched in the past year or two and use technical analysis to tell if the price has stabilized, as well as examine the fundamentals behind the coin and what it does.

Deep Crypto Research Strategies

Once investors understand the first three stages of crypto coin creation and investment, it is easier to conduct further investigation. Deep crypto research can be compared to stock research and analyzing cryptocurrencies can be conducted in three main ways: fundamental, sentimental, and technical.

Fundamental Analysis

When conducting fundamental analysis on a stock, investors often look at the underlying business. The concept is the same with cryptocurrencies. If a coin looks interesting, the next step investors may take is to read through a crypto investment knowledge center. When reading articles, investors work to gain an understanding of the problem the coin solves and the projected demand for it.

Sentiment Analysis

The most obvious type of sentiment for any coin will be the amount of hype. Market sentiment often motivates investors and influences their choice of cryptocurrency investments. A recent survey of over 500 respondents conducted by Bitcoin IRA found that despite price falls, interest in investing in cryptocurrency as part of retirement portfolios is surging. Some invest on speculation that prices will rise, and many are enthusiastic about traditional financial institutions adopting digital assets in the future.

Also, you can consider paying close attention to the chatter and hype by following crypto social media and news.

Technical Analysis

Technical analysis looks at the historical price to identify patterns, and there are many ways to conduct this type of analysis on cryptocurrencies when seeking to diversify for retirement. Whether an investor is new to crypto investing or a seasoned trader, analyzing crypto price charts can be helpful when making investment decisions. Traders often apply indicators to charts to help them decide when the time is right for them to buy or sell.

Where to Invest in Cryptocurrency

Smart investors learn how to perform research. Before investing in crypto, you should try to understand what stage the coin is at, perform your preferred type of analysis, and identify sentiment. As with any type of investment, there are risks involved and investors are encouraged to remain cautious and alert.

You can invest in cryptocurrencies through a self-directed IRA with Bitcoin IRA. As the world’s first and most trusted crypto IRA platform, Bitcoin IRA offers 24/7 trading and more than 60 cryptocurrencies to trade in self-directed retirement accounts. Plus, users enjoy anytime trading from the online portal or custom mobile app.

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