Beginners guide to researching crypto projects
It can be overwhelming when you jump into the crypto space. You find out about Bitcoin from a friend, family, or publication. Then you learn about Ethereum, Litecoin, and, Doge 🐶😂 And then you find out that there are thousands of other coins offering all types of random things, whether it be Defi, Dex, smart contracts, etc.
Now that we are having a little correction, rather than checking the folio every day and worrying, it's a good time to research other projects, see what developers are doing and how their communities are growing.
So I thought I'd give a brief guide into how I research crypto projects, and if anyone else has any more suggestions, please comment below to help the community.
1 ) Understand how market cap, coin supply, and price works. This is one of the most important basics to know when looking into crypto value. The best way to do this is to use the formula price x circulation = market cap.
2 ) What are the fundamentals.
check the website and see it's well written.
what is the project trying to achieve?
who are their competitors and are they doing anything different to them?
3 ) See if the founders of the project are anonymous or listed. Lack of transparency is a huge red flag in the crypto space.
4 ) Check the community
are they on Twitter, Reddit, and telegram
do they have an active community
do the community talk about the tech or just speculate about the price?
5 ) What is the roadmap of the project?
are they in the test net, or are they live on the main net
what are they looking to achieve over the next 12 months
6 ) Do they have any partners?
are they collaborating with any other crypto projects
do they have any plans for adoption outside the crypto space.
These are just some of the questions I ask when looking for a project to invest in.
Hope it helps, and good luck with your investment!