Deep Side: April 2023

05/04/2023

How to discover the deep side (5)

Tools that help in evaluating cryptocurrencies

Data science and statistics are very useful tools for evaluating cryptocurrencies.

Statistical software
This statistical software

https://jasp-stats.org/

This program is free, powerful, and popular.
You can use the power of statistics to extract a lot of indicators and metrics.

You can use a statistical program like this or any other program and extract a lot of reports.
Statistical software is a very powerful tool that helps you a lot in evaluating cryptocurrencies.

Data science

Use of data science, machine learning, and deep learning
In analyzing and evaluating cryptocurrencies, it can be very useful.
In fact, data science can be applied using many programming languages.
But the most popular programming language in data science is Python.
You can download the Python programming language here.

https://www.python.org/

https://www.anaconda.com/

To be continued

04/04/2023

How to discover the deep side (4)

Tools that help in evaluating cryptocurrencies

We need to extract many cryptocurrency indicators and metrics so that we can evaluate and judge them.

There are many websites and apps that provide statistics, indicators, and metrics about cryptocurrencies.

We will mention examples on these sites.
a very important and popular site, and most of those who work in cryptocurrency definitely know this.

Coin Market Cap

https://coinmarketcap.com/

It contains a lot of news and statistics about cryptocurrencies.
You can get a lot of information, data, and numbers about cryptocurrencies

https://www.coingecko.com

coingecko website

also an important and basic website with a lot of useful information.

This site offers a lot of useful pointers and reports that you can review at this link.
https://messari.io/dashboard

Another useful and powerful site
https://defillama.com/

Token Terminal

Token Terminal is also a very important site that provides some interesting and effective reports.
https://tokenterminal.com/

Glassnode

Glassnode is also a great site.
https://glassnode.com/

Debank

Another excellent site
https://debank.com/

Technical Analysis

important site
Assists in technical analysis of cryptocurrencies

https://www.tradingview.com/

You can build your own indicators and build your own trading strategies and there is also a community of traders from which you can learn a lot

Three important and similar sites
https://dune.com/home
https://flipsidecrypto.xyz/
https://www.footprint.network/

On these sites, you can use the SQL language and generate complex and powerful reports yourself

Also, there are many reports that others have programmed that you can benefit from

To be continued

03/04/2023

How to discover the deep side (3)

Other points help in evaluating cryptocurrencies

Competitors

One important way to evaluate a cryptocurrency is to know its competitors. It may be a completely new idea that has no competitors, and it may have other competitors offering the same product and the same idea in the same region and in the same market.

Question: What is the benefit of knowing the competitors for the project?

You can't evaluate a cryptocurrency-related project without comparing it to competitors.

Now, if you extract the various indicators and metrics for any cryptocurrency, how do I know if it is good or bad? I can only know if it is good or bad by comparing it with the indicators and metrics of other competing projects.

What gives numbers meaning is that you compare them to others.
By knowing the competitors and comparing the project with them, you can make a better decision.

Financial Analysis

Financial analysis is an essential tool in evaluating an asset.

After obtaining the financial statements, we start the financial analysis process and begin to better understand the financial position of the asset and properly evaluate it financially.

Unfortunately, most cryptocurrency projects have no accounting system at all; they don't have accountants, and they don't produce any financial statements.

If the project has a strong forum and community, even if there are no accountants,

You will constantly find that they post actual expenses and required expenses for the next period on the forum.

The project may not have a regular and complete accounting and financial system, but at least it has a lot of reports that can be found in the forum.

By following these reports, you can judge the strength and effectiveness of the project and, therefore, the cryptocurrency associated with it.

Multiple questions

Here are some questions Try to find answers .

You are now, after examining several aspects of the project, needing to organize your thoughts, organize the information you obtained, and find answers to a lot of questions.

For example, what are the political, economic, legal, environmental, and societal factors that can affect the cryptocurrency project?

What are the mission, objectives, strategies, and techniques of the project?

What are the strengths, weaknesses, opportunities, and threats of the project?

Who are the customers and major investors in the project?

These questions try to answer them. This helps you a lot in understanding the project and evaluating what you are investing in.

To be continued

02/04/2023

How to discover the deep side (2)

In this part, we will talk about other factors that influence how cryptocurrencies are valued.

Decentralized autonomous organizations (DAOs)

Many cryptocurrency projects are controlled by decentralized organizations. Most of these organizations have a forum that anyone can join.

Through this forum, members discuss all matters related to the cryptocurrency project.

For example, any potential partnership, expenses, appointments of some employees, problems facing the organization, future plans, and solving various problems are discussed.
These discussions also continue on Discord. Anyone can join Discord easily.

By joining the forum, you can easily judge the strength and goodness of the existing administration. And knowledge about the problems they face, the proposed solutions, and their future plans.

You can also share your thoughts with the members of the organization.

But there is an important point: there are indeed decentralized organizations that are managed properly, but there are also many decentralized organizations that are not managed properly.

In some organizations you do not find any real interaction or participation, and some of them are controlled in a central way, and they delete any comment or any post that contradicts what they do.

Once you enter the decentralization organization forum, you can judge whether it is really decentralized.

Also, you can judge the quality of management and whether this project has a future or not.

By joining the organization, you can learn a lot about the cryptocurrency project and also get the latest news about it.

Because all events are mostly discussed on the forum, Always look for a decentralized cryptocurrency organization forum.

Through it, you can easily judge whether it is a good investment or not.

Will you be able to judge whether it is a failed project or a real one?

You will know if there are really serious discussions, ideas, and real management. You can also connect with the team and be part of its success.

Code and smart contracts

Many cryptocurrency projects are open source, and you can easily check out the source code on GitHub.

If you have programming experience and have experience with open source code, you can examine the project code, inspect the code, and also examine the smart contracts associated with it. To be realistic, even if you are an excellent programmer, you will not be able to fully understand the code in a short time, but at least you can judge the project. And knowing how many people are working on it.

Is the code well developed?

What is the programming language used?

Are there many volunteers?

Are smart contracts written well and without problems?

Is the code developed regularly?

The answers to all these questions give you an idea of the strength and quality of the cryptocurrency project.

You evaluate the project deeply and on strong foundations.

To be continued

01/04/2023

How to discover the deep side (1)

The purpose of writing about these topics is not to provide investment advice.

But we try to find tools that help us develop a new and different way of thinking and be able to see the deep side of the crypto and blockchain worlds.

We are just trying to answer the question of how the cryptocurrency can be valued.

In the beginning, if you are new to crypto and the blockchain field, you need to try to learn some information about this field.

I think it is important to follow the cryptocurrency news and try to understand the basic things and terms in the world of crypto and blockchain.

There are many websites, blogs, YouTube, Telegram, Twitter, and Discord channels that explain blockchain concepts to those interested in cryptocurrency.

In many languages, you will find what you want, whether you speak English, Arabic, Spanish, French, or another language.

This is a very good start to putting your feet in this world. But the question now is, "Is that enough?"

It's not enough. But this is just the beginning. In fact, not everything you read about news, analysis, and opinion is true.

In the end, what you read is just someone's opinion. You should be able to form your own opinion.

Let's see an example of an educational website. This website,

https://academy.binance.com/en

On this website, you will find many articles and explanations about various concepts of blockchain and cryptocurrency.
There are many other websites out there, and this is just an example.

Another popular and good website that helps you learn a lot about cryptocurrencies

https://coinmarketcap.com

Now, if you are interested in a cryptocurrency, what is the suggested first step?
Search for a cryptocurrency website.

Read everything you find on the site, read the documentation, check the links, and if you can, check the app itself.

If there are links on social media, check them also.

Try to collect as much information as possible, analyze and arrange what you read, and if you find a term or something incomprehensible, search for its meaning on the internet.

Another point is the cryptocurrency project team.

It is important to know the team that is working on this project.

Sometimes team members are mentioned on a cryptocurrency website or related project.

Or if there is a LinkedIn link, you can see the LinkedIn page and know the team members.

Now you can evaluate the skills and experience of the team associated with the cryptocurrency project.

But you will find some problems in many countries cryptocurrency is illegal

So many team members hide their identities and do not give information about them or their real names.

Therefore, you cannot collect information about them or know anything about their experiences and capabilities.

Another point Some people know that whoever wants to invest in his cryptocurrency will search for and want to know the members of the team working on the project.

So sometimes a cryptocurrency project is eager to get employees with master's degrees, Ph.D.s, great names in the crypto field, or who have previous experience in large companies.

Therefore, whoever sees the team will be convinced that this currency has a future and that this is a strong team and start investing their money in this cryptocurrency.

This may generate the wrong impression.

Don't think that when you see the bright names, it's a good project; maybe it's not.

How do others see this cryptocurrency and its project?

Another point
By following various Discord channels, Telegram, Twitter, Facebook, forums and websites, YouTube channels, and the comments and interests of other investors.

You should keep track of the cryptocurrencies you are interested in.

This cryptocurrency may not be a good project, but because of people's interest, optimistic talk, and high expectations for it, it may eventually really rise in value.

Thus, it would be a good investment, at least in the short term

People's opinions and feelings towards any cryptocurrency are very important and may be a factor in determining its price in the near term, even if their opinions are based only on their feelings and not on a solid foundation. You can use this to make profits.

To be continued