How to research cryptocurrency stocks

Julius Sim

Content writer



The cryptocurrency market is growing in both volume and diversity, digital currency attracts big players that eagerly invest billions in most lucrative options like Bitcoin and Ethereum, but the offer grows larger with every ICO. However, unlike any other good or service, cryptocurrency is difficult to predict as it’s virtually impossible to manipulate the market using tools and practices that work with the traditional market. This doesn’t mean that we should invest blindly, on the contrary, cryptocurrency trade requires profound research.

In this article, we’re going to walk you through some of the most important aspects of the cryptocurrency trade that you should use as a reference when you start your hunt for an investment candidate.


How to research cryptocurrency stocks. Source:

Research your investment goals

Is your goal to make some quick cash or you’re looking for a long-term investment plan? The answer to this question should lead your entire research strategy. When academic writers need to write a custom research paper for their clients, they first ask for the goals of that research. With clearly defined goals, it’s easy to create research direction and look for resources and inspiration. The same principle applies to cryptocurrency trade, if you know what you wish to accomplish, you’ll seek out the tokens that can grant you success.

Bitcoin is always a good choice for fast cash because it has the highest price fluctuation, while less volatile coins like Ethereum offer better chances to those who are ready to wait a bit. If we consider the rate of Bitcoin price escalation, it’s clear that in less than a year one was able to make 6-7 times the invested amount. It’s also very common to watch Bitcoin price growing 10 to 15 percent overnight which is also a good way to make some quick buck.

However, when it comes to Ethereum, it’s important to understand that there is more to cryptocurrency than buying and selling it on the market. Blockchain technology, which is the basis of every digital currency, offers a series of practical benefits for finance, legislature, business, and software development in general. At this point, the Ethereum network is home to the most powerful DeFi platforms. Decentralized finance is performing very well and begins to take roots in major financial institutions, so making a long-term bet on Ethereum at this moment seems like a smart decision.


Read cryptocurrency whitepaper

To understand if a certain cryptocurrency matches your interests, it’s important to understand what its creators are planning for it. Here’s the thing, certain institutions start blockchain networks because they need the power of a large network of computers, and they award those that join their network with tokens, that’s how this technology works. Depending on the nature of the project, the price of those tokens could grow enormously, or turn out to be a dead end.

A cryptocurrency whitepaper gives you a detailed overview of what the creators are planning to do, how they plan to execute their plan, predicted timeframes, and all other details that concern the platform. If you can’t find a project whitepaper, you should probably avoid investing in something that lacks a professional approach.

It’s especially important to read whitepapers if you’re planning to invest in a project that is yet to start its ICO. An Initial Coin Offer is an opportunity to make a nice profit if you bet on the right horse. In most cases, coin price rises when they hit the market so early investors have a chance to sell their digital property and turn some quick profit. It’s important to pick the best moment to sell tokens, and this requires both luck and experience.

It’s not a bad idea, therefore, to try and find a pattern to determine the best time to sell your crypto after the ICO. Reading through the whitepaper gives you the chance to compare how similar projects behaved in the past and learn from former examples.

Consider market presence

Not all exchange markets buy or sell every digital currency that pops up. This means that you could find a proper investment option, one that meets your expectation and seems like a winner, but it doesn’t reach any respective exchange platform. Some candidates could raise awareness and start spreading like a forest fire, which usually scales the price of that coin in a serious measure.

It’s also important to track past market activities and see if there’s a crypto that’s on an uptrend trajectory, a rise in trade volume always raises the price. It’s very important to watch how a certain cryptocurrency performs on the market through time because it’s possible to notice patterns that could lead to a conclusion when it’s the best time to buy or sell your stock.

The choice of exchange platform also plays an important role because you wish to trade using the most lucrative platform. The number of blockchain exchange platforms is also on the rise, mainly because they provide better terms of use.


Blockchain technology is reshaping the digital world, the mainstream audience is becoming more open to this subject and financial institutions can’t neglect that trend. As it goes with any novel technology, visionaries recognize the right choice and others follow the suit. These were some of the most practical tips for anyone interested in investing in cryptocurrency, the rest is up to the future.

Julius Sim is an experienced content writer and the Head of Support Team at Edubirdie writing service. As a writer Julius creates content that informs and entertains the audience. His work is based on actual information and trustworthy sources.


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