Crypto project monitoring aims to identify opportunities and avoid major losses. We do this by keeping up with real-time news and updates on the portfolio’s projects. The advantage to constantly checking on the investments is that you’re often able to receive information before it reaches news outlets and the general public, allowing you to react to the news before many retail investors.
Suppose you ever heard that some news story is already “priced in.” It’s because once an event hits the mainstream, savvy investors and insiders have already taken advantage of the opportunity. This phenomenon is why major crypto events, such as the Bitcoin halving, cause a run-up in BTC prices before the upgrade occurs.
Key crypto project channels to monitor include:
- The project’s website
- The project’s blog
- Official Discord
You want to look out for bullish project updates to maximize your potential realized gains. These updates would contribute to the appreciation of the underlying token.
Consider these events for a quick profit:
- New token use cases
- Project investors
- Social events
- Regulatory clarity
- Trilemma upgrades (scalability, decentralization, and security)
- Team additions
- Revenue streams
- Cryptography – A study of secure communications techniques in an adversarial environment
- Metadata – Data that describes some other data. Ex. the caption describing an image
- Whitepaper – Information document used to promote or highlight the features of a solution to a problem, product, or service
Threats to Profitability
As the crypto space grows, it invites more bad actors and sophisticated scams. The monitoring process will help you identify threats to the project before the general public and help you notice shady behavior—all of which aid in the erosion of the token price. If you exit before other investors, it can help you lock in a higher liquidation price.
- A slowdown in content
- Not reaching deadlines
- Unrealistic promises
- A lack of communication
- Software bugs
- Wallet hacks
- Ties to known scams