7 Ways to Make Crypto Analysis Before Buying or Selling in Africa

Which coin is best to buy now? Which coin will boost in future? How do you Analyse crypto before buying? What is the number one crypto analysis? How do I make a crypto analysis before buying or selling in Africa?

In this post, we’ll explain 7 practical ways to perform solid crypto analysis before buying or selling in Africa. These strategies don’t require advanced expertise – just a little curiosity and a willingness to learn.

1. Research the Project’s Website and Whitepaper

When you’re doing crypto analysis before you buy or sell crypto in Africa, one of the most important steps is researching the crypto project’s website and whitepaper. This step helps you understand what the project is about and whether it’s worth investing in. Let me guide you through how to effectively do this, using simple terms and a step-by-step approach.

Step 1: Visit the Official Website

Every legitimate crypto project has a website where they provide key information about their goals, technology, and team. Start by searching for the official website of the cryptocurrency you’re interested in.

• Look for the URL: It’s important to check if the website URL looks professional and contains the project’s name (e.g., bitcoin.org or ethereum.org).
• Verify the site is secure: Make sure the website uses “https” instead of “http” to ensure it’s a secure connection.

Once you’re on the website, explore the homepage to get a feel for the project. Press buttons such as “About,” “Technology,” or “Mission” to understand the project’s vision.

Step 2: Look for the Whitepaper

The whitepaper is the most important document. It explains everything you need to know about the project—its purpose, the technology behind it, and how it plans to solve real-world problems.

• Where to find it: On most crypto websites, you’ll see a button labeled “Whitepaper” on the main navigation bar or footer.
• Press the Whitepaper button: Download or view the whitepaper directly on the site.

Step 3: Understand the Whitepaper

Now that you have the whitepaper, here’s what you should focus on when reading it:

• Vision and Purpose: The whitepaper should clearly state what problem the project aims to solve. For example, Ethereum’s whitepaper explains its goal of supporting decentralized applications (DApps).
• Technology: Look for sections that explain the technology the project uses. Is it innovative? Does it have the potential for real-world use?
• Tokenomics: This refers to how the cryptocurrency’s tokens are distributed, used, and managed. Check if there’s a fixed supply or if more tokens can be created over time. Limited supply often increases value.

Step 4: Check for Red Flags

While reviewing, watch out for potential red flags:

• Unrealistic promises: If the project claims guaranteed huge returns with no risks, it could be a scam.
• No details on the team: A legitimate project will introduce its team, including their background and experience in the crypto space.
• Lack of transparency: If the whitepaper is too vague or doesn’t address how the project will achieve its goals, that’s a warning sign.

Step 5: Compare with Other Resources

Once you’ve reviewed the website and whitepaper, compare the information with other sources. Websites like CoinMarketCap and CoinGecko provide useful data on the project’s current status, market performance, and tokenomics.

2. Examine Social Media and Community Engagement

When analysing any crypto project, examining its social media presence and community engagement is essential. This will help you gauge the project’s popularity, transparency, and overall credibility. Here’s a step-by-step guide on how to do it:

Step 1: Visit Their Social Media Channels

Start by finding the project’s official social media platforms. Popular platforms for crypto projects are Twitter (now X), Telegram, Discord, Reddit, and YouTube.

1. Twitter (X): Search the project’s official handle. You can use the search bar and type their name. Look for a blue verification badge, which signals authenticity.

• Hit “Follow” to stay updated.
• Scroll through their posts to check how frequently they post and what they share. Do they share updates, collaborations, or only promotional content?

Look at the number of likes, retweets, and comments on each post. Active engagement means the community is involved.

2. Telegram/Discord: Join their Telegram or Discord channels. These are spaces where community members and developers chat in real-time.

• For Telegram: Tap “Join Group.”
• For Discord: Click “Accept Invite.”

Are people asking questions? Are the team members answering quickly? Look for genuine conversations, not just hype. This will tell you whether the team engages with their users or not.

Step 2: Check for Community Size and Activity

Now, let’s check the size and activity level of their community. A large community doesn’t always mean success, but consistent activity and engagement usually indicate a healthy project.

• On Twitter (X): Look at their follower count and how often they post.
• On Telegram/Discord: Check the number of active members. Are there daily discussions happening? Projects with only sporadic activity could be a red flag.

Engagement matters more than numbers! A project might have 100,000 followers, but if only 10 people are engaging with posts, that’s a bad sign. A smaller, more active community shows people are truly interested in the project’s future.

Step 3: Look for Transparency and Consistency

Transparency is key in crypto analysis when deciding to buy or sell crypto in Africa. Legitimate projects are usually transparent about their developments.

• AMA Sessions: Look for Ask Me Anything (AMA) sessions where the project’s team answers community questions.
• Regular updates: Are they posting weekly or monthly updates about the project? A lack of updates could mean slow progress or even abandonment.
• Partnerships and collaborations: Are they announcing partnerships or being integrated into larger ecosystems?

Step 4: Check for Community Sentiment

The overall mood of the community is critical in crypto analysis. This helps in understanding if people believe in the project or are just speculating.

• In Telegram/Discord chats, observe the tone of the conversations. Are people happy and optimistic? Or are they angry and disappointed?
• Are there complaints about the project, and if so, how does the team respond? Projects with good customer support and rapid responses build trust.

Step 5: Review Influencer and Expert Opinions

Many crypto projects are followed by influencers or crypto experts. These people often give insight based on their experiences.

What to do:

• On Twitter or YouTube, search for videos or threads by influencers who discuss the project. A positive mention from a trusted expert can be a good sign, while negative reviews may reveal potential problems.

Step 6: Watch for Red Flags

Be cautious of projects with little to no community interaction or projects that heavily rely on paid promotions. If every comment or interaction looks too good to be true, that’s a potential red flag. Look for natural and balanced conversations.

Step 7: Test Engagement Yourself

Finally, don’t just be an observer—engage! Ask a question in their Telegram or Twitter space. See if the response is quick, helpful, and informative. A responsive community shows healthy interaction, which is vital in your decision-making for crypto analysis or whether to buy or sell crypto in Africa.

3. Analyze the Team Behind the Project

When performing crypto analysis, one of the most important steps before you decide to buy or sell crypto in Africa is to analyze the team behind the project. The team’s experience, credibility, and track record can determine the success or failure of a cryptocurrency. Here’s how you can do it, step-by-step, in simple words:

Step 1: Visit the Project’s Website

Start by heading to the official website of the project. Most crypto projects have a section labelled “Team” or “About Us.” This is where they display details about the people running the project.

Buttons to press:

• Scroll to the menu bar on the homepage and look for “Team” or “About” sections.
• If you don’t see it, scroll to the bottom of the website. Many websites place this information in the footer.
• Click on these sections to reveal information about the team members.

Step 2: Check for Real Names and Profiles

Once you’re on the team page, it’s important to see if the names of the team members are real and verifiable. Reputable projects proudly showcase their team with names, photos, and even links to their professional profiles.

What to do:

• Look for team members’ full names and their profile pictures.
• If the team members are anonymous or use only their first names, this could be a red flag.
• Look for links to their LinkedIn profiles or other professional platforms like Twitter.

Step 3: Verify Their Credentials on LinkedIn

Now it’s time to dive deeper and verify if these team members are legitimate. LinkedIn is a great tool for this because it shows their career history, education, and connections.

Buttons to press:

• On the team page, click the LinkedIn icon (if available) next to each team member’s name.
• If they don’t provide LinkedIn links, you can manually search for their names on LinkedIn. Just type their names into the LinkedIn search bar.

What to look for:

• Check their job titles and past experiences. Do they have a background in blockchain technology, finance, or software development?
• Look for endorsements and connections. If their profile has little activity or looks incomplete, it might not be genuine.
• See if they have prior experience working on successful crypto or tech projects. A good team should have people with relevant skills and proven success in the industry.

Step 4: Investigate Past Projects

A key part of crypto analysis is looking at the team’s previous projects. This will help you figure out whether they’ve been successful in the past or if they’ve been involved in failed or even fraudulent projects.

What to do:

• Use Google to search for the team members’ names and their past projects. For example, type their name followed by “crypto” or “blockchain.”
• Look for news articles, forums, or blog posts that mention their involvement in previous crypto projects.

Red flags: Be careful if you find that the team members have worked on projects that scammed people or failed due to poor management.

Step 5: Evaluate the Team’s Public Presence

Transparency is very important when it comes to buying or selling crypto in Africa. A strong team will regularly appear in media interviews, podcasts, or at crypto conferences. This shows that they are active and open to sharing updates about their project.

What to do:

• Search for interviews with the team on platforms like YouTube, Medium, or CoinTelegraph.
• If they have spoken at any blockchain conferences, this is usually a good sign that they are respected in the industry.

Buttons to press:

• Go to YouTube and type the name of the project or team members in the search bar. Check if they’ve been interviewed on trusted channels.
• Check their Medium or blog posts to see if they are communicating regularly with their community.

Step 6: Check for Advisors and Partners

Apart from the core team, also take a look at the project’s advisors and partners. Advisors are experts who provide guidance, and strong partnerships indicate a serious project.

What to do:

• Scroll through the team page and see if they mention advisors. Advisors are usually industry veterans with expertise in blockchain, finance, or technology.
• Check the partnerships listed. Are they partnering with well-known companies or other successful crypto projects?

Verification: You can verify partnerships by visiting the partners’ websites and seeing if they also mention the project.

Step 7: Look for Red Flags

While analyzing the team, be on the lookout for any warning signs that could suggest the project is scammy or unreliable.

Red flags include:

• Team members with fake LinkedIn profiles or little to no information available online.
• Teams that are anonymous or do not provide verifiable information about their background.
• Advisors who are unfamiliar or do not have experience in the crypto or tech industry.

Also Read

How to Avoid Pump and Dump Coins in Crypto Investing

4. Study the Market Metrics

Market metrics are essential when conducting crypto analysis before deciding to buy or sell crypto in Africa. These metrics provide a deep understanding of how a cryptocurrency is performing, its potential future, and whether it is a solid investment. Here’s how to study the most important market metrics step by step:

Step 1: Understand the Basics of Market Metrics

Let’s be clear on what market metrics are. These are data points that tell you how a cryptocurrency is performing. The main ones to focus on include:

• Market Capitalization (Market Cap)
• Trading Volume
• Circulating Supply
• Price Movements (Price History)
• Liquidity
• Volatility

Step 2: Check Market Capitalization

Market capitalization (market cap) shows the total value of a cryptocurrency. This is calculated by multiplying the current price of the coin by its circulating supply.

• Why it matters: It tells you how big or small a crypto project is. Projects with larger market caps are generally more stable but may not have as much room to grow, while smaller ones are riskier but could offer higher returns.
• Buttons to press:
  1. Go to a crypto tracking website like CoinMarketCap or CoinGecko.
  2. Type the name of the cryptocurrency you’re researching into the search bar.
  3. Look at the number next to Market Cap. This will show you how much the crypto is worth in total.
• Example: If a coin has a market cap of $1 billion, it’s a large and well-established project. A market cap of $10 million means the project is smaller and potentially riskier.

Step 3: Look at Trading Volume

Trading volume shows you how much of a cryptocurrency has been bought or sold in the last 24 hours. High trading volume means that there’s a lot of interest in that coin right now, while low volume may suggest it’s less popular.

• Why it matters: Coins with high trading volumes are easier to buy or sell quickly. If volume is too low, it may be hard to trade, and price changes could be extreme.
• Buttons to press:
  1. On CoinMarketCap or CoinGecko, look for the section labeled 24h Volume.
  2. Compare this number to previous days to see if the volume is growing or shrinking.
• Tip: If the volume is high, it often means that a lot of people are interested in the coin, which can be a good sign when doing crypto analysis to decide whether to buy or sell crypto in Africa.

Step 4: Analyze Circulating Supply

The circulating supply is the number of coins that are currently available for trading. Some cryptocurrencies have a fixed supply, while others release more coins over time.

• Why it matters: A coin with a low supply could be worth more if demand rises, while one with a very large supply might not increase much in value unless a huge amount of people are interested.
• Buttons to press:
  1. On the coin’s profile page in CoinMarketCap or CoinGecko, look for the section labeled Circulating Supply.
  2. Compare it with the Total Supply (if given) to see how many more coins could be released.
• Example: Bitcoin has a circulating supply of around 19 million, with a maximum supply of 21 million. That limited supply is part of why Bitcoin is valuable.

Step 5: Examine Price History

Checking how the price of a cryptocurrency has changed over time can help you decide whether it’s a good time to buy or sell crypto in Africa. Is the price currently low compared to the past, or is it at an all-time high?

• Why it matters: If a coin’s price has been rising steadily, it could continue to grow. But if it’s been volatile (up and down), it might be a risky investment.
• Buttons to press:
  1. On the coin’s page, look for the Price Chart.
  2. You can choose to view the chart over different time periods like 24 hours, 7 days, 1 month, or even 1 year.
  3. Pay attention to any big spikes or drops in price, which could indicate major events like news or market manipulation.

Step 6: Evaluate Liquidity

Liquidity tells you how easy it is to buy or sell crypto in Africa without causing the price to change drastically. Higher liquidity means more people are trading the coin, so you can enter or exit your position more easily.

• Why it matters: Cryptocurrencies with high liquidity are usually more stable and safer investments. Low liquidity could mean you might struggle to sell the coin when you need to.
• Buttons to press:
  1. In CoinMarketCap, check the Markets section of the coin’s profile.
  2. This shows where the coin is traded and how much volume each exchange handles.
  3. The more exchanges and volume listed, the higher the liquidity.
• Tip: Coins that are listed on multiple major exchanges are easier to trade and generally have better liquidity.

Step 7: Measure Volatility

Volatility refers to how much the price of a cryptocurrency fluctuates. A highly volatile coin might go up or down by 20% or more in a single day, while a stable coin might only change by a few percent.

• Why it matters: High volatility can mean big profits, but also bigger risks. For beginners or long-term investors, less volatile coins may be safer.
• Buttons to press:
  1. To measure volatility, look at the Price Chart on CoinMarketCap or CoinGecko.
  2. Choose a time frame, like 7 days or 1 month, and observe how much the price has moved up or down.
• Example: A coin that has gone from $1 to $3 in a week is more volatile than one that has moved from $1 to $1.10.

Step 8: Use These Metrics for Crypto Analysis

Once you’ve studied the market metrics, use them to make your final decision when doing crypto analysis. If the market cap is high, trading volume is strong, and price history shows steady growth, the coin could be a solid investment. If the metrics show high volatility and low liquidity, it may be too risky, especially if you’re new to crypto.

5. Check the Price History and Volatility

When performing crypto analysis, understanding the price history and volatility of a cryptocurrency is key to making informed decisions about when to buy or sell crypto in Africa. These two factors help you evaluate the stability of the coin and predict future price trends.

Here’s a simple and detailed guide to help you examine the price history and volatility of any cryptocurrency.

Step 1: Check the Price History

Price history tells you how a coin’s value has changed over time. It helps you spot trends like whether the price is rising, falling, or staying the same. You’ll want to look at both short-term and long-term trends.

Why it matters: Looking at past price movements can help you guess how the price might behave in the future, helping you decide whether it’s the right time to buy or sell crypto in Africa.

Buttons to Press:

1. Go to a Crypto Price Tracking Website:
   • Open a site like CoinMarketCap or CoinGecko in your web browser.
   • These platforms offer easy-to-read charts of a cryptocurrency’s price history.
2. Search for the Coin:
   • In the search bar, type the name or ticker symbol of the cryptocurrency you want to analyze (e.g., Bitcoin, Ethereum, etc.).
3. Access the Price Chart:
   • On the coin’s profile page, find the Price Chart section. You’ll usually see a default 24-hour view of the price.
   • To see the history, use the buttons that let you view different time periods like 7 days, 1 month, 3 months, 1 year, or All time.
4. Analyze Price Trends:
   • Look at how the price has moved during these periods. For example:
     • A steady rise over months might suggest the coin is gaining value consistently.
     • A sharp drop followed by a slow recovery could mean the market is volatile but could bounce back.

Example: If a coin has been rising steadily over the last 3 months but had some big drops before, this could be a good sign to hold on to the coin or consider buying. However, if it’s constantly dropping, you might want to be cautious before buying.

Step 2: Analyze Volatility

Volatility is how much the price of a cryptocurrency changes, or “fluctuates,” over a given period. Cryptocurrencies are known for being more volatile than traditional investments, which means their prices can move up or down very quickly.

Why it matters: Coins with high volatility are riskier because their prices can change a lot in a short amount of time. Low-volatility coins are more stable, but they may offer lower potential returns.

Buttons to Press:

1. Open the Price Chart:
   • Stay on the Price Chart section of the coin’s profile page in CoinMarketCap or CoinGecko.
2. Check for Price Fluctuations:
   • Select different time frames (like 24 hours, 7 days, or 1 month) and look at how much the price goes up and down.
   • Large jumps or drops indicate high volatility, while small movements suggest the coin is less volatile.
3. Look for Volatility Indicators:
   • Some sites may offer a volatility rating or show percentage changes in price over different time frames (e.g., 24-hour change, 7-day change).
   • Coins that change more than 10% in a day are typically considered very volatile.

Example: If a coin’s price goes from $10 to $15 in one day, that’s a 50% increase—meaning it’s very volatile. If it stays between $10 and $11 for a month, it’s less volatile.

Step 3: Compare the Coin’s Volatility to Other Cryptocurrencies

It’s helpful to compare the volatility of the coin you’re researching to other coins. This will help you determine if it’s more or less risky than similar cryptocurrencies.

Buttons to Press:

1. Visit Crypto Comparison Websites:
   • Use sites like CoinMarketCap, CoinGecko, or Binance to compare the volatility of different coins.
   • Look for the section where they show Top Gainers or Top Losers to see which coins are moving the most in the market.
2. Compare Price Charts:
   • Open the price charts of two or more coins and compare how much they fluctuate over the same time period.
   • You’ll be able to see which ones are more volatile by observing the jumps and drops in the chart.

Step 4: Identify Patterns and Use for Crypto Analysis

Now that you’ve looked at both price history and volatility, use this information for your crypto analysis to decide if you should buy or sell crypto in Africa.

• If the coin has a long history of steady growth with low volatility, it might be a safer investment.
• If it has high volatility but you’re comfortable with taking risks for bigger rewards, it could be a good option to buy or sell crypto in Africa for short-term gains.
• If the price history shows that the coin is constantly dropping or going through huge, unpredictable swings, it could be a sign to avoid it or be cautious.

Also Read

Hodling vs Speculating in Cryptos Investing

6. Consider its Utility and Real-World Use Cases

One of the most important steps in crypto analysis is to examine whether a cryptocurrency has real-world use and provides tangible benefits. A coin that solves a real problem or is widely adopted in industries, businesses, or by consumers is more likely to have long-term value.

In this section, we’ll walk you through a detailed, step-by-step process on how to evaluate the utility and use cases of a cryptocurrency, explaining in simple terms so it’s easy to understand.

Step 1: Research the Coin’s Utility

Utility means what the cryptocurrency can actually be used for. A strong coin will have a purpose that solves problems or improves how things are done. Coins with real-world utility tend to hold value better because they are useful in daily life or certain industries.

1. Visit the Project’s Official Website:
   • Open the coin’s official website (e.g., Bitcoin.org or Ethereum.org). You can usually find links to the official site on platforms like CoinMarketCap or CoinGecko.
   • Look for sections like “About,” “Technology,” or “Use Cases” to get a summary of the coin’s purpose.
2. Look for Real-World Applications:
   • Does the coin help with payments (e.g., Bitcoin), smart contracts (e.g., Ethereum), or is it used in a specific industry (like VeChain, which is used in supply chain management)?
   • Some coins are designed for specific purposes. For example:
     • Filecoin is used for decentralized cloud storage.
     • Chainlink provides data for smart contracts.
   • If the coin is widely used and has strong partnerships with real businesses or industries, that’s a good sign.
3. Compare with Other Coins:
   • See how this coin’s utility compares to other coins. Some coins are just created for hype, with no real value or use cases. If a coin solves a real-world problem, it is more likely to have a stable future.

Step 2: Explore Real-World Use Cases

A use case is a real-life example of how people or companies use the cryptocurrency. This is where you dig deeper into where and how the coin is being applied in the real world.

1. Search for Use Cases on Google:
   • Open Google and search for the cryptocurrency followed by “use cases.” For example, type “Ethereum use cases.”
   • Look for news articles, case studies, or business reports that explain how the coin is being used in industries or by companies.
2. Check for Business Adoption:
   • Does the coin have partnerships with well-known companies or industries? Coins with business backing tend to be more valuable. For example:
     • Ripple (XRP) is used by financial institutions to settle cross-border payments faster and more cheaply than traditional methods.
     • Ethereum is used for developing decentralized applications (dApps), which is now being adopted in finance, gaming, and even healthcare.
3. Evaluate Consumer Adoption:
   • Some cryptocurrencies are used by everyday people for making purchases, investments, or even as savings. If consumers are widely using the coin, it’s a sign it has a real purpose.
   • Look at which platforms or companies accept the coin as payment. If it’s widely accepted, that’s a strong sign of value.

Example: Let’s say you’re evaluating Bitcoin. You’ll find that it’s widely accepted for online payments and in many stores around the world. Compare this to a smaller, newer coin with little adoption, and it’s easy to see why Bitcoin has long-term potential.

Step 3: Study the Technology Behind the Coin

The technology that powers a cryptocurrency is another crucial factor when considering its utility. Some coins have groundbreaking tech that pushes the whole industry forward, while others may be outdated or overly hyped without substance.

1. Look for Technology Pages:
   • Visit the coin’s official website and look for sections that explain the underlying technology. This could be under headings like “Technology,” “Blockchain,” or “Platform.”
   • The technology should have innovative features like scalability (handling a lot of transactions at once), security, or energy efficiency.
2. Search for Technical Reviews:
   • Google reviews of the coin’s technology by searching for terms like “Bitcoin technology review” or “Cardano tech analysis.”
   • Look for independent reviews or expert opinions that explain whether the coin’s tech is reliable and advanced.
3. Check if It’s Being Improved:
   • A good cryptocurrency project should have ongoing development and improvements to its technology. Look for regular updates and improvements in the project’s roadmap (often found on the project’s website or GitHub).
   • Coins with stagnant development may not have the tech needed to survive in the competitive crypto space.

7. Learn the Tokenomics

When doing a crypto analysis, understanding a project’s tokenomics is key to making smart investment decisions. Tokenomics refers to the economics of a cryptocurrency, including the total supply, how it is distributed, how it works, and its overall impact on the market. By studying this, you can better determine if a cryptocurrency is worth buying or selling.

Step 1: Start by Checking the Total Supply and Circulating Supply

The total supply refers to the maximum number of tokens that can ever be created, while the circulating supply refers to the number of tokens currently in use or available in the market. Knowing these numbers helps you understand whether a coin is scarce or highly available, which impacts its value.

1. Visit CoinMarketCap or CoinGecko:
   • Go to websites like CoinMarketCap (coinmarketcap.com) or CoinGecko (coingecko.com).
   • In the search bar, type the name of the cryptocurrency you’re interested in (e.g., Bitcoin or Ethereum).
2. Look for the Token Supply Information:
   • On the coin’s profile page, you will see details about total supply, circulating supply, and maximum supply. This is usually displayed near the price and market cap information.
   • Compare these numbers. A coin with a low circulating supply but high demand can become more valuable over time.

Step 2: Study the Token Distribution

How the tokens are distributed among investors, developers, and the community is a key part of tokenomics. If a few people hold most of the tokens, they can easily manipulate the market, which might not be a good sign.

1. Go to Etherscan or Blockchain Explorers:
   • Visit blockchain explorers like Etherscan (etherscan.io) for Ethereum-based tokens or BSCScan (bscscan.com) for Binance Smart Chain tokens.
   • In the search bar, type the contract address or token name to view the distribution.
2. Analyze the Token Holders:
   • Check the list of token holders. A good sign is when tokens are distributed among many different holders instead of just a few large wallets.
   • If one or two wallets own a big chunk of the supply, this could be risky, as these holders can dump their tokens anytime, causing a price crash.

Step 3: Understand the Token Release Schedule

Some cryptocurrencies have a vesting schedule or token release schedule, which means that not all tokens are available in the market at once. This schedule affects the token’s supply over time and can lead to price changes when new tokens are released.

1. Visit the Project’s Whitepaper:
   • On the coin’s official website, look for the whitepaper. You can often find this in the “Documents” or “About” section.
   • In the whitepaper, search for the section that discusses the token release schedule or vesting.
2. Look for Unlocking Events:
   • The release schedule will show when new tokens will be introduced into the market. If a large number of tokens are set to be unlocked soon, this can increase the supply and potentially lower the price.
   • Some projects lock up tokens for developers and early investors. Knowing when these tokens unlock is important, as this can cause sudden price changes.

Step 4: Investigate the Utility and Governance Role of the Token

Not all tokens are the same. Some are utility tokens, which means they have a specific use within the platform, while others are governance tokens, giving holders the power to vote on decisions within the ecosystem.

1. Check the Whitepaper or Website:
   • Go to the project’s website and find the section that explains the token’s purpose. This is usually found in sections like “Tokenomics” or “How It Works.”
2. Understand How the Token Is Used:
   • Utility tokens are used for things like paying transaction fees or accessing services within the project.
   • Governance tokens allow holders to vote on updates or changes to the platform. If the coin has utility, it is more likely to have long-term value.

Step 5: Look at the Inflation Model

Some tokens have a fixed supply, while others create new tokens over time, similar to how central banks print money. This is called an inflation model. Cryptocurrencies with high inflation rates can see their value diluted over time.

1. Read the Tokenomics Section of the Whitepaper:
   • Go back to the project’s whitepaper and look for information on the inflation or deflation model.
   • This will tell you if more tokens will be added to the supply in the future and at what rate.
2. Compare with Other Cryptos:
   • Compare the inflation rate of the coin you’re analyzing with others. Coins with lower or no inflation, like Bitcoin (which has a fixed supply of 21 million), tend to hold their value better over time.

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Frequently Asked Questions on 7 Ways to Make Crypto Analysis Before Buying or Selling in Africa

1. What are the methods of cryptocurrency analysis?

There are two primary methods of cryptocurrency analysis:

• Fundamental Analysis (FA): This involves looking at the underlying technology, the team, market demand, tokenomics, partnerships, and real-world use cases to assess the crypto’s value.
• Technical Analysis (TA): This method involves using charts, historical price patterns, and various indicators (like moving averages, RSI) to predict future price movements.

2. What is the basic of technical analysis for cryptocurrency trading?

The basics of technical analysis include:

• Understanding charts: Price charts (candlestick, line, etc.) represent the price action.
• Using indicators: Tools like Moving Averages, RSI (Relative Strength Index), and MACD (Moving Average Convergence Divergence) help predict trends.
• Identifying patterns: Recognizing chart patterns (e.g., Head and Shoulders, Double Top) helps foresee possible price reversals.

3. Which analysis is best for cryptocurrency?

Both Fundamental Analysis and Technical Analysis have their roles. Fundamental Analysis is better for long-term investments, while Technical Analysis is more useful for short-term trading decisions.

4. How to analyse crypto charts?

To analyze crypto charts:

• Select a timeframe (e.g., 1 hour, 1 day).
• Look for trends (uptrend, downtrend, or sideways).
• Use indicators like Moving Averages, RSI, or Bollinger Bands.
• Watch volume for insight into market participation.
• Identify support and resistance levels, which act as price barriers.

5. How do you Analyse crypto before buying?

Before buying crypto:

• Check the project’s whitepaper to understand the fundamentals.
• Look at the team and partnerships.
• Analyze the tokenomics (supply, demand, utility).
• Study the market metrics (volume, liquidity).
• Review price charts for technical insights.
• Check the project’s social media and community engagement for growth potential.

6. How many types of crypto analysis are there?

There are mainly two types of crypto analysis:

• Fundamental Analysis (FA)
• Technical Analysis (TA)

Some also consider Sentiment Analysis, which involves gauging public opinion and media attention around a cryptocurrency.

7. What is the best crypto analysis chart?

The candlestick chart is the most popular chart for crypto analysis, as it shows detailed information about price movements over time, including open, close, high, and low prices.

8. Where can I learn crypto technical analysis?

You can learn crypto technical analysis from various platforms:

• Online courses (Udemy, Coursera)
• YouTube tutorials by crypto traders
• Crypto websites and blogs like CoinMarketCap and CoinTelegraph
• Books on technical analysis (e.g., “Technical Analysis of the Financial Markets” by John Murphy)

9. What is fundamental analysis of cryptocurrency?

Fundamental Analysis (FA) of cryptocurrency involves evaluating the intrinsic value of a crypto asset by analyzing:

• The project’s whitepaper
• The team behind it
• The tokenomics (supply, demand, and utility)
• Partnerships and market potential
• Real-world use cases

10. What is the number one crypto analysis?

There’s no single “number one” crypto analysis method. However, combining both fundamental and technical analysis is often the most reliable approach to understanding and predicting cryptocurrency price movements.

11. How to know when crypto is going up?

To predict when a crypto is going up:

• Look for bullish patterns in price charts (like ascending triangles or bull flags).
• Check trading volume; increasing volume usually confirms upward movement.
• Follow market sentiment on social media or news outlets.
• Monitor key indicators like the RSI for oversold conditions.

12. What are the indicators for buy sell in crypto?

Key indicators for buy/sell decisions include:

• RSI (Relative Strength Index): Buy when it’s oversold (below 30), and sell when it’s overbought (above 70).
• Moving Averages (MA): When the price crosses above the MA, it signals a buy, and when it crosses below, it signals a sell.
• MACD (Moving Average Convergence Divergence): Shows trend direction and strength.

13. Is there a way to predict crypto?

While no method can 100% predict crypto prices, Technical Analysis, Fundamental Analysis, and Sentiment Analysis can help make educated predictions based on historical data, market trends, and project fundamentals.

14. How do you know which crypto is going to boom?

To predict which crypto may boom:

• Research the project’s fundamentals (whitepaper, team, partnerships).
• Check community engagement on social media.
• Analyze market trends and technical indicators.
• Watch for news or announcements that could drive demand.

15. How to predict crypto pumps?

Crypto pumps are often driven by:

• Positive news (e.g., partnerships, product launches).
• Market sentiment (especially on social media).
• Increased volume in trading. Watching these factors can help predict potential pumps.

16. Which coin is best to buy now?

There’s no one-size-fits-all answer. Popular options currently include:

• Bitcoin (BTC) for long-term stability.
• Ethereum (ETH) for its utility in smart contracts.
• Altcoins like Solana (SOL) or Avalanche (AVAX) for high-growth potential.

17. How to read signals in crypto?

Crypto signals are buy/sell recommendations provided by analysts. To read them:

• Identify the entry price (the suggested price to buy).
• Set stop-loss orders (to limit potential losses).
• Follow the target price (the level where you should sell). Many traders provide signals via Telegram, Discord, or social media.

18. How to learn technical analysis?

To learn technical analysis:

• Start with basic chart patterns (e.g., support, resistance, candlesticks).
• Understand common indicators (RSI, Moving Averages).
• Use free charting platforms like TradingView to practice.
• Watch online tutorials and take courses.

19. Which coins will boom?

Predicting which coins will boom involves research. Coins like Ethereum, Solana, Avalanche, and Layer 2 solutions like Polygon (MATIC) are often highlighted for their potential growth.

20. Which coin will boost in future?

Coins with strong fundamentals and innovative technology are more likely to boost in the future. Popular options include:

• Ethereum (with the ETH 2.0 upgrade)
• Polkadot (interoperability between blockchains)
• Cardano (smart contracts)

21. Which coin rises fast?

Low-cap altcoins often experience the fastest price rises, but they also carry the most risk. Meme coins like Shiba Inu and Dogecoin have risen quickly in the past due to community-driven demand.

22. How to predict price action?

To predict price action:

• Use technical indicators (RSI, Bollinger Bands).
• Watch chart patterns (like triangles, head and shoulders).
• Monitor volume to confirm trends.
• Check support and resistance levels for potential price reversals.

23. What is the best tool for technical analysis?

Popular tools for technical analysis include:

• TradingView (a free and paid charting platform).
• CoinMarketCap and CoinGecko (for market data).
• Crypto trading bots like 3Commas for automated strategies.

24. Where can I do technical analysis for free?

You can perform technical analysis for free on:

• TradingView
• Binance (offers basic charting tools for free)
• CoinMarketCap
• CoinGecko

25. Which coin is next Bitcoin?

No coin can truly replicate Bitcoin’s impact, but potential candidates for growth include:

• Ethereum (ETH) due to its smart contract capabilities.
• Solana (SOL) for its high-speed transactions.
• Polkadot (DOT) for blockchain interoperability.

26. Which crypto will give 1000x in 2024?

It’s impossible to predict which specific crypto will deliver 1000x returns. However, low-cap, high-potential altcoins or newer projects might offer such returns. Research and patience are key.

27. Which crypto can give 1000x in 2025?

As with 2024, predicting such massive gains is speculative. Look for early-stage projects with strong fundamentals, unique value propositions, and growing communities. DYOR (Do Your Own Research) always.

28. How to master price action?

To master price action:

• Study candlestick charts to understand price behavior.
• Practice identifying trends and chart patterns.
• Watch for key levels like support and resistance.
• Use trading simulators to gain experience without risking real money.

29. How to predict where the market will open?

To predict where the crypto market will open:

• Check pre-market prices on platforms like TradingView.
• Monitor overnight news that could affect the market.
• Watch global economic events (like interest rate changes)

30. Which trading strategy is the best?

The best trading strategy depends on your risk tolerance and investment goals. Some popular strategies include:

• Day Trading: Buying and selling within the same day to profit from small price movements.
• Swing Trading: Holding onto assets for days or weeks to capitalize on market swings.
• HODLing (Hold on for Dear Life): Buying and holding for long-term gains.
• Scalping: Making numerous small trades for quick profits.

31. Which crypto will rise tomorrow?

It’s difficult to predict which crypto will rise tomorrow. However, monitoring technical indicators, market news, and social media sentiment can provide clues about short-term price movements.

32. Which coin is faster than Bitcoin?

Several coins are faster than Bitcoin in terms of transaction speed, including:

• Solana (SOL): Known for its high throughput of up to 65,000 transactions per second (TPS).
• Ripple (XRP): Offers fast settlement times for cross-border payments.
• Cardano (ADA): Designed for scalability and faster transaction speeds compared to Bitcoin.

33. Which is the next crypto to boom?

Predicting the next crypto to boom is challenging. Coins with strong fundamentals, partnerships, and real-world utility like Polkadot (DOT), Avalanche (AVAX), or Chainlink (LINK) are considered promising.

34. Which coin will beat Bitcoin?

While Bitcoin holds the dominant position, coins like Ethereum (ETH), with its smart contract platform, and Solana (SOL), with its fast transaction speeds, are often seen as challengers in specific areas like scalability and programmability.

35. What is the best cheap crypto to buy?

Some promising low-cost cryptos include:

• Cardano (ADA)
• Polkadot (DOT)
• VeChain (VET)
• Polygon (MATIC)

These coins offer strong use cases and community support, which may lead to future price increases.

36. Which crypto to buy now?

Consider investing in:

• Bitcoin (BTC) for long-term stability.
• Ethereum (ETH) for its smart contracts and DeFi applications.
• Polkadot (DOT) or Avalanche (AVAX) for their innovative blockchain solutions.

37. How to analyse crypto?

Crypto analysis involves two key methods:

• Fundamental Analysis (FA): Assessing the project’s whitepaper, team, partnerships, and tokenomics.
• Technical Analysis (TA): Using charts and indicators like RSI, Moving Averages, and Bollinger Bands to predict price movements.

38. How to study crypto charts?

To study crypto charts:

• Select a timeframe (daily, weekly, or monthly).
• Identify trends (uptrend, downtrend, or sideways).
• Use indicators like RSI and Moving Averages.
• Monitor trading volume for confirmation of price movements.

39. How to predict crypto market?

While it’s difficult to predict the market with certainty, you can:

• Use technical analysis to study price patterns and indicators.
• Follow market news for updates on regulations, partnerships, and developments.
• Watch social media sentiment for sudden surges in interest.

40. How do I know which cryptocurrency will go up?

To gauge which cryptocurrency may go up:

• Analyze the project’s fundamentals (team, use case, partnerships).
• Watch for market trends using technical analysis.
• Monitor trading volume and news that could affect price movements.

41. What is the best prediction model for crypto?

There are various models, but none is foolproof. Popular ones include:

• Stock-to-Flow (S2F) for Bitcoin price predictions.
• Technical indicators like RSI and MACD for short-term predictions.
• On-chain analysis for deeper insights into blockchain activity.

42. How do I know if my crypto is pump or dump?

A pump-and-dump is characterized by:

• Sudden sharp price increases with no fundamental basis.
• Heavy promotion on social media or forums.
• Rapid sell-offs that follow a quick rise. Be cautious if you notice these signs.

43. Which indicator is best for price action?

Popular price action indicators include:

• Relative Strength Index (RSI): Measures momentum and helps identify overbought or oversold conditions.
• Moving Averages (MA): Identifies trend direction.
• Bollinger Bands: Indicates market volatility.

44. What is ICT strategy trading?

ICT (Inner Circle Trader) strategy trading involves:

• Studying price action to predict future price movements.
• Using smart money concepts to trade in the direction of institutional traders.
• Analyzing market structure to identify key levels for entry and exit points.

45. Which price action strategy is best?

Common price action strategies include:

• Support and Resistance Trading: Buying at support levels and selling at resistance levels.
• Breakout Trading: Entering a trade when the price breaks above resistance or below support.
• Trend Following: Riding the trend by buying in an uptrend and selling in a downtrend.

Conclusion

Making crypto analysis is key when deciding whether to buy or sell crypto in Africa. By following the steps we’ve outlined, you’ll be better equipped to conduct a thorough crypto analysis. Always remember to examine social media engagement, check the price history, and consider the real-world utility of the cryptocurrency before making your move.

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