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)