One of the biggest challenges in the world these days is being able to trust information. In this post I’m going to discuss my strategy and my favourite resources when it comes to researching my next cryptocurrency position and how much I trust each resource.
How do you know what to trust?
Knowing what to trust is arguably the hardest challenge these days, especially when you factor in fake news and all of the shit that that brings with it. For me, my best resources for researching my next crypto position is with the project itself! What better way to find out what is happening than hearing from the horses mouth directly. (Of course you have to think to yourself maybe they are rug pulling you and to play devil’s advocate. If what anyone in crypto says seems far too good to be true, then it probably is… So this isn’t a blanket statement saying all crypto projects are truthful – far from it – but the best source is from the project itself.
Quick note on my trust worthiness scorings – take them with a pinch of salt. Assume people are out to lie to you and do your due diligence. A white paper can be filled with garbage and not delivered by the project team. In isolation I believe any resource is not to be trusted so I’m always skeptical, but my ratings below are just some kind of metric about how I value these resources when researching crypto projects.
White paper – trust worthiness 9/10
The white paper of the project itself is the first place I’ll start. If the project doesn’t have one then this is a massive red flag and I wouldn’t even consider investing in any crypto position. Sometimes they can be a bit too technical for those that are not IT / tech savvy, so you might need to find a dumbed down summary about what they are trying to discuss. I’ve put the white paper as 9/10 for trust worthiness because you cannot blindly trust all white papers, they could be lying… Also white papers tend to be written at the beginning of the projects life cycle and then remain out of date. Not all projects write updated white papers or summary of how things are changed so bear this in mind when researching projects that have been developed for many years.
Formal website / Discord / Twitter channel from the project itself – trust worthiness 7.5/10
Again – a great place to find information is from the project itself. These will be much more up to date and dynamic with what is taking place, so for a existing project that has been around for 2+ years I’d be looking here much more than the white paper (assuming it has a white paper and it reads well). Big advantage with hearing from the project itself is that you’ll hear the news the same time as everyone else. If you use a YouTube content creator for your news – probably you find out 2-3 days later than everyone else and you missed the opportunity to sell/buy as the price has already moved! Trust worthiness 7.5/10 – on the whole it’s good, but you have to watch out for fake news and also decipher through a lot of the noise to find the sound bites.
Github commits – trust worthiness 9.5/10
The number of Github commits and what is being pushed/discussed online with their code base (assuming it’s public) is not the best indicator to use, however it’s better than nothing. You cannot look blindly at the number of commits as a true indicator (e.g. 1 big commit vs 10 tiny ones). However if you can see lots of development activity taking place then you know the development team is still committed to the project. Also if you’re technically minded you can read the code being committed and find out new functionality before it’s hit the news! 9.5/10 for trust worthiness, but not all projects have a public repository so this isn’t guaranteed.
Not all projects have an open source Github repository – so this isn’t applicable for all projects. Find as much data about development as possible for ANY project you are interested in even if Github is not used
What are other people saying?
The crypto saying of ‘sell when your Grandma starts asking about Bitcoin’ is kind of true when it comes to research also. If you start seeing loads of topics on say the BBC website – chances are we are at a local top and it might be an opportunity to start selling. Likewise if the BBC starts talking about how shit BTC has gone recently, probably we’re at a low and it’s time to start buying. (Not a guarantee but I like to look at the overall market sentiment and gauge how I’m going to act)
Reddit community of that project – trust worthiness 6.5/10
This is very similar to the formal communication channels from the project itself to be honest. Often you have to sift through way more garbage before you get to that hidden gem. So many times I’ve seen people research and catch things before they hit the official news sites and if you pay attention closely to what people are saying (and get lucky) – then you can find out things before they’re officially announced.
Also on the flip side – you get absolutely tonnes of shills which is why I’ve rated this 6.5/10 – but in terms of research – you are able to talk to the community itself and get some advice and guidance which is incredibly useful. 6.5/10 seems a little on the harsh side, but blame the shills for that.
Podcasts – trust worthiness 8.5/10
Podcasts are an amazing resource for me. They are fantastic for listening on your commute to work if you go by car/train etc and also you find out a lot of new things with a podcast that you wouldn’t have researched. (You are listening to the podcast and along for the ride, you cover whatever topic they want to discuss). For this reason I’ve put it as 7.5/10 because a lot of planning/effort goes into podcasts and you tend to get less shills (at least in the podcasts I listen to). Those that are involved tend to be a bit more educated and know what they’re talking about. It’s also a higher barrier to entry for making a podcast than writing some Reddit comment, so while there are podcast shills… there are far far less of them than you find on Reddit.
Crypto news sites – trust worthiness 4/10
Random crypto news sites that amalgamate content…. Where do I start. I think they’re a necessary evil. I don’t particularly enjoy going to research new projects so I take what they say with a very large pinch of salt – often they are bs/rug pulls – but I want to see what other people are saying about the project. Typically they are either very PRO or very AGAINST the project. This is my resource that lets me play devil’s advocate and ask what if? I advise taking on their onboard their feedback but ask yourself what they may be missing from their argument. Overall the trust worthiness is perhaps 4/10 at best, but still a lot of people like using these resources so I want to see what people are paying attention to, even if it can be absolute drivel. Research here with caution.
Other Researching Tips
If you’re aspiring to be a day / swing trader, then you want to stay ahead of the game and get news as close to the source as possible, as quickly as possible. One of the tips I have is to look at signing up to RSS feeds that amalgamate content from various sources and send it to you. In stocks terminology – an example would be the RNS feed from the London Stock Exchange. Don’t trust everything you read! Of course this seems a bit obvious to most, but so many people get duped into believing things that are not true. Again I’m going to repeat myself here, but if it sounds too good to be true then it probably is! I don’t keep a research spreadsheet – but I’ll save book marks and take my time to understand things. Quite often I’ll come across a new topic/terminology I didn’t understand before (e.g. zk vs optimistic rollups) – then I spend some time going down that individual rabbit hole to get a basic understanding of what the differences are and look at the competitions strengths / weaknesses
Share Your Crypto Resources
I hope this helped some of you out there get a good idea how and when I might use different resources in my crypto research. If you agree/disagree with what I’ve put above let me know. Also if you found a great crypto resource that you are wanting to share, let me know and I’ll check it out. If I think it’s great then I’ll put in the list below!
Crypto resources shared in this thread: