Key takeout
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ChatGpt helps simplify complex cryptographic projects by summarizing white papers, explaining use cases and breaking toconemics.
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Team research, partnerships, and security risks are important before investing in crypto tokens.
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Comparisons between projects and competitors highlight the pros and cons for better decision-making.
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ChatGpt can suggest related research questions and act as a guide for beginners and experienced investors.
Investing in cryptocurrency is exciting and overwhelming, especially with the thousands of coins and tokens available today. From Bitcoin (BTC) and Ether (ETH) to lesser-known altcoins and memokines, the market is full of opportunities and risk. Proper research is essential before investing your money.
That’s where ChatGpt is useful.
This article explains how to use CHATGPT to investigate cryptocurrency projects (using different projects as an example), assess reliability and make smarter, data-based investment decisions. Whether you’re a beginner or a veteran trader trying to streamline your workflow, ChatGpt can be a powerful research assistant.
Why research is important when investing in crypto
Unlike traditional stocks supported by revenue reports and regulatory submissions, crypto assets often lack standardized financial data. Instead, they have to sift through white paper, Github repositories, community sentiment and more. Without proper research, it can lead to investment in exaggerated and fraudulent projects.
Crypto fraud can take many forms, but here are some common examples to illustrate why research is important.
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Rug pull: These occur when a developer creates a new token, promotes it heavily to attract investors, suddenly withdraws all the money, leaving the investor with no value token. The infamous case was the 2021 “Squid Game” token, which saw prices surge before millions of creators disappeared.
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Pump and dump scheme: The group artificially inflates the price of coins by spreading false hype, but sells holdings with profits, crashes the price, leaving others with losses.
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Fake Projects or plagiarized white paper: Some tokens have white paper copied from legitimate projects and contain ambiguous technical jargon that obscures the lack of actual products and teams.
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Slaughter of pigs: The scammers build long-term relationships to gain trust, convince the victims to invest heavily in fake crypto projects, and ultimately steal the funds.
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Deepfake Scam: Video or audio generated by sophisticated AI can impersonate influencers or company executives, trick people into sending cryptography and revealing private keys.
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Cyberschooting: Scammers register domain names similar to legitimate cryptographic projects and exchanges to mislead users and steal qualifications or funds.
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Phishing and fake websites: Scammers create websites that mimic popular tokens and exchanges to steal private keys and funds.
Therefore, it is important to examine these basic points before investing in a coin.
ChatGpt helps you answer all of these questions faster and more clearly.
Did you know? The scammers have impersonated Coinbase for phishing attacks by sending fake emails and text messages that look like official Coinbase alerts. These messages often ask users to click on a malicious link to “verify” their account, or “fix security issues”, view login credentials, or introduce crypto fund transfers. To avoid the casualties of these scams, always double-check the sender’s email address and visit Coinbase via the official website or app.
Step by Step: Investigate your cryptographic projects using CHATGPT
Here’s how you can effectively use ChatGPT when researching coins before investigating:
1. Start with a project overview
Use ChatGpt to generate a high-level overview of coins. This will help you quickly understand the purpose and goals of your project.
Example prompt:
“Explain what Bitcoin Hyper (Hyper) explains in a simple way.”
As observed, CHATGPT breaks down complex technical languages and helps you understand core ideas even if you are not a blockchain developer.
2. Get a breakdown of the white paper
The white paper is a basic document that outlines the technology and roadmap for a cryptographic project. They can be technical and crowded.
ChatGpt scans or summarises (if pasted) white papers, providing an easy-to-read version of what’s most important, saving you time while maintaining clarity.
Example prompt:
“We’ll summarize the key points of the stellar white paper.”
3. Check the compatibility of your use case and market
Many coins promise innovation, but do they solve real problems? To find out, you can ask Chatgpt to help you assess the usefulness of the coin.
Example prompt:
“What problems does ChainLink solve and who will use it?”
This gives you a context for how your project fits into the wider ecosystem.
4. Rate your team and partners
A trusted founding team and strong partnership often demonstrates legitimacy and feasibility.
Example prompt:
“Who founded the avalanche blockchain?
5. Evaluate talknomics
Toconomy refers to how the supply, incentives and distribution of coins are structured. Insufficient tocononomics often leads to inflation, lag pull, or price crashes.
Example prompt:
“Explain the talknomics of Hedera (hbar) coins. How will it be distributed?”
6. Check your compliance and security concerns
Security and regulatory issues can derail even the most promising cryptographic projects. You can ask ChatGpt for risk factors.
Example prompt:
“Has Tether USDT (USDT) faced regulatory issues?”
7. Compare with competitors
Understanding how a coin compares to others in that category (defi, layer 1, NFT, oracle, etc.) can help you identify pros or cons.
Example prompt:
“Compare SUI and SEI blockchains in terms of scalability and interoperability.”
You can also request the advantages and disadvantages of a table format to facilitate analysis.
Did you know?ChatGpt is trained on a large dataset of diverse texts from books, websites and articles, allowing you to generate informed answers in many subjects.
Bonus Tip: Ask chatgpt what to ask
If you’re new to Crypto, you may not know which questions to ask. Try this:
Example prompt:
“We are considering investing in new crypto tokens. What important things should we investigate and be aware of?”
ChatGPT can provide a checklist covering basics, technology, emotion and security that is perfect for building your own research framework.
Did you know? ChatGpt architecture It is based on a trans model that allows you to understand the context of text using auto-joint mechanisms and generate coherent and context-aware responses.
What I can’t do ChatGpt (still)
ChatGpt is a powerful research assistant, but it is important to know what its limits are.
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There is no real-time data unless integrated with tools like web browsing and APIs.
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There are no investment advice or guaranteed forecasts.
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It may generate outdated or incorrect information (always check the facts).
Whether you’re investing a small amount like $10 or a large amount like $10,000, thorough and careful research will still provide the best defense against risk. Fortunately, AI tools like ChatGPT make it easier than ever to gather insights, organize information, and ask the right questions.
It is important to use chatgpt to complement the research process rather than as an alternative to critical thinking or due diligence.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
