Principle and Algorithmic Check sheet
Purchase of a Crypto Currency:
Coin name:
Exchange:
Wallet:
Date:
Purchase Price:
Amount of coins:
Total Principle Invested:
Dividend:
52 Wk high:
52 Wk low:
% of Crypto Portfolio:
Centralized or Decentralized:
Currency or Company-tied:
Main reason purchase of this coin: __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Fundamentals:
• What problem is this currency trying to solve: (What is its use for):
• How big is the problem that the solution is trying to address:
• Have others tried to solve the problem? Are they still trying?
• Is this problem being solved in other ways?
• Are there alternative coins that are doing this similarly?
• How much is the price of the currency based on the expectations versus value today?
• Will this coin make big changes in the future and be adopted mainstream?
Branding (Buffets Moat test):
How Sophisticated is the Marketing strategy
What is the marketing saying the coin will do or provide
Is the coin well known? Does it have a large market cap potential? Remember, if they don’t know you, you don’t exist
Social Test:
How many Twitter followers does the coin have
What is the volume of the coin on exchanges
Does it have any celebrities or crypto-celebrity backings
Development Team and Technology:
What is the new technology this coin is assisting with:
Can this solution be easily copied
What is unique about this team (strong, young, reputable)
Price, Market, exchanges, Wallets:
Does the Price pump and dump make sense? Relevant to news and other coins?
Which exchanges does it trade on?
Which wallets hold this coin?
Economics of the coin:
What is the inflation or deflation rate of the coin
How much of the currency will be generated over time
When will the last one be generated
Is this a Proof of Stake or a Proof of Work model?
Coin History:
How much has this coin progressed so far in its roadmap strategy?
Who are the most prominent coin holders and what is there history with the coin?
How has the coin changed over time?
Is it at a good buy price relative to short term and long term charts?
Cryptocurrency Regulation Challenges:
Regulators have the power to destroy a coin over night. Some are resilient to this because of their decentralization; however, the coin holders are not. If one is declared, holders will dump them. Therefore, limiting your decentralized or anonymous coins will help prevent this.
Does it focus on a highly controversial market?
Allow anonymous Transactions?
Popular on the Dark Web?
Classified as a Scam Coin?
Mining and Transactions:
Complexity level of mining?
Transaction time relative to bitcoin
Transaction fees
Risk Scale:
1------------------------------------------------3-----------------------------------------------------5
1 for Strong Moat - 3 for Rapidly Gaining audience - 5 for Highly Speculative(new coin)
Principle and Algorithmic Checksheet for Buying Any Cryptoccurency | Ecency
