If you ever watched any cryptocurrency video you have seen creator of the video said this is not a financial advice, always do your own research. Like it some magical spells that protects them from getting sue but technically offers you a non credible information.
What does doing your own research really means? What does it actually look like? And is it difficult? and most importantly how to actually do it.
Now before I too much I get into the important stuff I would like to take an example of losing weight. 😉
You know if you wanna lose weight there are lot of factors that play into your success right? Some people say that simply you need to do more exercise, others say the type of exercise you do that will be weight lifting or cardio, others say the only thing that really matters is your diet. In reality it's probably a combination of the amount of exercise you get, the type of exercise you get and ofcourse your diet, sleep cycles, your emotional life which affects your harmone and even your motivation for you trying to lose weight which keep you going on the days when you don't feel like to continue.
My point is when it comes to lose weight a lot of factors are important probably responsible for your results. Well same is true in making a profitable investment.
In basic research three type of analysis we can do, and many people claim that only one matters. I am sharing that how I did research before I get into the AVAX and you are gonna agree with me. First of all
1) Technical Analysis :-
Technical analysis is basically a study of the past price of an asset. But it mostly looking at charts and making educated guesses based on how other people do their educated guesses which then produces a certain pattern again. You can't really make a great decision only looking at the charts but they definitely be helpful.
If you know in Nov- Dec Avax was in between $140 - $150 and now avax is $74( at the time of writing). So this is how technical analysis can help to make a wise decision to make a profitable investment.
Now the second type of analysis is
2) Sentimental Analysis :-
Sentimental analysis sounds really complicated it's basically the study of what everyone is feeling about that coin. We can't really measure what people feeling directly but we can do by looking at the words they use on the internet. You can do it by asking what is the market saying or even what are crypto influencers saying about a project. Now there are lot of advanced tools out there like conversation, news articles all around the web.
So when it comes to my investment with Avax coin I compelled all the information together and then come up with some sentiment score that tell me people are saying good things or bad things about the Avalanche project.
So here are some information which I found on internet about avalanche which forced me to invest in avax.
The third type of analysis is
3) Fundamentals Analysis :-
This is the study of the actual ideas, the team and the progress of the specific project.
Since many people thinks technical analysis is bogus, many people don't have the knowledge to perform the sentimenal analysis but anyone can do fundamental analysis fairly and easily.
Like here's the strong team behind the avalanche which makes me a more confident on this project.
Hopefully you get one thing out of this you realised it's not exercise, diet it's not technical analysis or fundamental analysis but instead the world is multivariable environment where patterns may emerge among all of these areas that if you studied enough you might be able to take advantage of them.
Disclaimer:-
And none of these stuff is an investment advice but more of me to describing what I do to perform research and things that you may no have thought of to look into.