10 Points You Should Pay Attention to When Investing Cryptocurrency Project
It’s no secret that cryptocurrency will continue to dominate the top list of the investment chart in 2022. With more and more people join the game, the question comes to how anyone can quickly pick a worthy and trustable crypto project which holds long term stability and potentiality.
This shouldn’t be difficult. All you have to do is just a little bit of research first.
Plus, we’re here to help! With a little help from our experts and extra deep insight of the industry, anyone can discern the better ones from the inferior.
In this guide, we’ll cover 10 crucial points for every crypto enthusiastic to decide which cryptocurrency project to invest in.
Without further ado, let’s dive into it!
1. The Community
A bit part of a cryptocurrency’s success is it’s following — so look out for cryptocurrencies with strong communities and loyal followers because that shows people have a genuine interest and belief in the cryptocurrency.
Run through some subreddits, YouTube channels and some of the feedback from their communities — and see what they’re saying about your potential investment.
2. Fundamental Analysis
‘Fundamental analysis’ simply means the foundations of an investment — their team, their ambitions, their strengths etc.If you’re new to cryptocurrency, don’t sweat the technical stuff!
In the long run, fundamental analysis is going to help you just as much as technical analysis.
3. The Team
One of the top things you can research is the cryptocurrency’s team. In fact, researching and vetting the team behind a cryptocurrency is one of the most important factors you can look into.
Here’s a few things to analyse:
Who is behind the cryptocurrency?
Do you trust in their expertise?
Are they ambitious?
Do they have a proven track record of success?
4. The Technology
A big part of a cryptocurrency’s success is the underlying technology:
You have to understand how it’s going to perform against their competitors — and what makes the technology stand out from the crowd. Look out for the big innovators — the cryptocurrencies that will completely disrupt their industry.
5. The White Paper
Every time a new cryptocurrency is released, they usually bring out a white paper too. This will outline the purpose of the coin, its technology, how it works and its overall vision (I’ll come onto that next).
A white paper is one the best places to evaluate the fundamentals of a coin — and you should never invest anything into it until you’ve read their white paper.
6. Their Vision
The vision of the cryptocurrency is really important.
You want to make sure this coin will be around for at least the next 5–10 to ten years, and if they’re not thinking long term then you should be seriously worried.
A big vision = a sign of ambition.
7. Their Leadership
The success of a coin is navigated by the leadership team — they’re the ones who make all the big decisions!
The leaders are the ones that carry out the vision, so research their team and look at what they’ve achieved so far.
You want to be assured that if they’re the champions of the vision, then they can lead that coin to success.
8. Pricing History
Ever heard the saying “The best predictor of future behavior is past behavior?”
Of course, this isn’t always the case — especially with cryptocurrency. However, pricing fluctuations gives you a strong history of the coin and if it will be a solid investment for the future.
9. Credibility & Reputation
Is the cryptocurrency respected online? Do they have a strong reputation?
At the end of the day, if they have a bad reputation then you know you probably shouldn’t invest your money into them — you really need to have strong credibility and trust to be successful in this field.
So run some google searches, look through crypto communities and see what people are saying about the coin.
10. The Road Map
When you’re deciding which cryptocurrency to invest in, you should look for a coin with a solid road map and strong plans for development.
This is the key if you’re looking for long term success.
Here’s few things to watch out for:
Clear timelines for the development of the coin. If there’s no clear timeline, this could show a lack of commitment for the development team.
When are they planning to release major updates?
If the coin has limited number of coins in circulation, then when is that limit expected to be reached?
How To Use This Guide
See this guide like a checklist.
Before you decide which cryptocurrency to invest in, simply run through each of these 10 rules and make sure your potential investment ticks the boxes for each.
And whilst there’s no definitely no ‘safe bets’ in the crypto world, this guide will really help you pick a strong investment with solid fundamentals.
About Utopia
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Enjoy GameFi, DEX, decentralized lending, NFT marketplace and more DeFi apps all in one in Utopia universe.
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