Building Your Coin Radar

With stock-tip-like projections being discussed daily, including fundamentals, I think the methodologies we use are going to bear repeating for some time. Not only to educate newbies, but to be proven wrong. Some people like to think that statements that bear accuracy shouldn't be refuted, or argued against. The truth is that arguments educate both sides. And this isn't about some silly statement like, "if you can't explain it simply, you don't understand it" -- what that really means is that you don't understand your audience.

Lets move on from education and talk about a few tools that you can use to make accurate decisions. With the bullish market, even joining a hype-coin ICO that people point at, described as a "ShitCoin", may be a good investment if you've put in a sell order as soon as you've bought it. Not trusting new coins is natural, but not taking into account the human psychological factors in the market is just as natural. People don't always play by logic. Remember that. Humans. Are. Not. Completely. Logical. I, personally, believe it's in part of our development, whether genetically or because of human fallacy -- because of fallacy, there's often a chance for survival.

So, beyond the great philosophical content and theorizing, let's just share some methods of figuring out which coins you should invest or trade in.

And yes, coinmarketcap.com is discussed often, but it does bear repeating because it's such a convenient resource, if only for coinmarketcap.com/new/ -- new coins that come out, should they be hosted on your exchange, are vital. If you can find some piece of psychological resonance within yourself to think that a coin might possibly be a great investment, buy it. You're gambling if you don't make a series of diverse investments, so don't buy just one coin. You may lose on them all, but there's a higher chance of not losing a potential return on your fiat funds if you buy several. Bitcoin may an exception if all you're seeking is stable, slow gains.

You also have to remember that investors, especially what people refer to as "Whales", are sometimes people that will toss $500 at something for amusement. So, if I had the money that of them do, I might just buy some FuckToken (yes it's real, with a $730,000 market cap as of this post, no shit). Even without looking into the company, human psychology says (to me) that someone may just buy it, which means if you buy it beforehand, you gain.

The same goes for cryptocurrencies as they pop up on https://en.wikipedia.org/wiki/List_of_cryptocurrencies and https://whattomine.com/ -- seek out human-oriented resources and imagine what it is that they're doing. Then invest. If there's terahashes of a coin being mined, it'll have an effect. If it's mostly mining farms (which you might check pools to find out), it may be of less import. Some of the miners may be smart, and head of me, and have realized this already, and have broken up their miners into different workers to appear to be a diverse group of people.

The reason that you want to look for indicators such as groups of miners rather than one big farm is because of the psychological impact a group of people speaking positively about mining will have, versus just one guy who doesn't even check his farm. This is why ICOs spend a great deal of money on advertising, the same reason that Adult Cam Model sites are willing to pay out $100s of dollars for each paying customer to affiliate marketers. And why a fervent fan-based, pivoting on their wants and needs is how most successful companies survive. That, and diversifying.