Quick and Easy quide to Crypto Fundamental Analysis

There are literally thousands of different CryptoCurrency/Blockchain projects out there and new ones launching everyday. This makes it very difficult to quickly assess which ones look promising and which dont.

So below are the key points you need to look at to get a good idea to if a project warrents further research before buying/investing, mining, staking or starting a Masternode.

  1. Key Figures: Look up the key-figures like current marketcap, circulating supply, total supply; compare the these to other projects/competitors in the space on Coinmarketcap.com . For example, if you look up NEBL, compare it to the marketcap of STRATIS e.g.; when it comes to the supply look for anomalies, like a small circulating supply but a huge total supply. And if this is the case, you should check their distribution model later, things that could have a negative impact include large premine, very high new coin issueance/infation and concentration of holdings. 1-2 minutes
  2. Project Activity: Check out Bitcointalk.org for the official announcement thread; here you will (or you should!) find essential information about the idea and concept of the project. More important, you can see pretty fast how big and active the community and the official team; most devs are active in their threads. Have a look at recent comments and get a general feel for where the project is heading 3-5 minutes
  3. Github Activity: It is also wise to check the latest GitHub respositories. However be aware that an empty or not recently updated GitHub doesn’t mean a project is dead, this is a common rookie mistake. If other indicators are showing activity of the (dev)-team it’s fine. 2-3 minutes
  4. Website: is there detailed information about the project, like a decent whitepaper? A roadmap? Informations about the team? Do they link to their social media accounts like Slack, Twitter, Reddit, if so, is there activity? 5 minutes

If after checking all the above, the project still looks promising then you need to do a more in depth analysis. However this should give you a decent idea of how good the project is and help to avoid fakes, scams and dead projects,

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Blockfolio Review – Track your Bitcoin and Altcoins

I was looking for a quick, easy and free app so that i could keep an eye on the value of my crypto on the move and came across Blockfolio. I tried a number of similar apps but this one was the easiest to use and has some great features. As you can see from the screenshot above the home page gives you a quick view of your portfolio, its value and what price movements there have been. The handy graphs give you an in depth look at each coin when you click on them. You can select which exchange to use, customize the timescales (24h, 1 week, 1 month etc) and most importantly view in fiat value and Bitcoin value. It does require you to manually input the data so maybe not the best for heavy day traders. However for the casual bag holder you can save your purchase price and track its performance against current market price. I would not get carried away checking every 5 minute price dip and don’t forget to zoom out to 3 – 12 month price ranges every now and then. All in all a very well built app that works nearly flawlessly. Available for both Apple iOS and Android.

https://www.blockfolio.com/

What the fork is Bitcoin Gold BTG? Scam or gift?

You may of heard recently that there is going to be a software fork of Bitcoin to create a new altcoin called Bitcoingold (BTG). I have tried to give an honest summary of all the information available below, be very careful with any new fork as your BTC could be at risk (see below).

The Bitcoingold developers have given 25th October as the day when BTG coins will be created. The main idea behind it is to create a less centralized Bitcoin by moving from ASIC mining to GPU mining. It will use the same algorithm as Zcash called equihash.

This fork is not to be confused with the possible segwitx2 fork in November.

Now this isn’t a new thing in Crypto, it has happened many times before creating successful coins such as Dash, Litecoin and Zcash. Essentially any development team could fork any open source Cryptocurrency at any time by taking the core client and running their own version from a certain block number onward. For example Litecoin was forked from the Bitcoin Core client primarily by having a decreased block generation time of 2.5 min’s, increasing the maximum number of coins and using a different hashing algorithm (scrypt instead of SHA-256).

However there are many other complex factors that determine if a fork survives and has any value. Such as attracting mining power (if POW), getting listed on exchanges, preventing replay attacks, having a working wallet and finally having people willing to buy it. At the end of the day, just like anything in life, a Cryptocurrency is only worth what somebody is willing to pay for it.

So what the fork is happening with Bitcoingold BTG?

Well this is just another software fork using Bitcoin Core as a starting reference. Therefore if successful holders of BTC will technically also hold an equal amount of the new coin up to the point of the split.

However before you go putting the deposit down on your Lambo there are some very important things to consider.

Firstly this is not some high profile fork being implemented by an experienced, transparent team of developers with community backing. The effort is being led by Jack Liao, CEO of LighteningAsic a miner manufacturer, a Chinese financial backer simply known as Wubi and anonymous lead developer called H4x3rotab.

Secondly if your BTC is held in an exchange, you will only receive BTG if they decide to support it and credit it to you. Only two exchanges have so far committed to BTG, Bitexchange (Hong Kong) and relatively unknown Bitstar.

Update 19/10/2017 – Yobit exchange have also signalled support for BitcoinGold.

Bitcoin exchange

Thirdly the project has not yet added strong replay protection to its proposed software. If this is not resolved then you could potentially lose your original Bitcoin (BTC) when moving it from your wallet if not done correctly.

Finally one of the biggest criticisms aimed at the project is its decision to “pre-mine” or mine the new blockchain themselves before its released. This give the developers a potentially large amount of coins to sell or dump as they see fit. The lead developer “H4x3rotab” commented the amount of pre-mine would be “at most one percent of the total supply”.

In any case be careful when the fork arrives and do your research before making any sales or transfers.

22/10/2017 Update

Great article from Bittrex confirming support for BTG but highlighting many of my concerns mentioned above https://support.bittrex.com/hc/en-us/articles/115002320451

A Guide To CryptoCurrencies And How to Buy Them, Hold Them, Trade Them, Mine Them and Spend Them

 

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