How to Search for Potential Projects in Crypto Space?

By akohad Nov15,2022

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This article talks about ways new investors can do their research before investing in a crypto project to ensure potential profits.

The first step to evaluating any decision is to conduct research; you should know and work on essential aspects of a project. With trading, investment, and asset acquisition, the onus on research becomes even more vital.

Crypto is a space that can make or break you, depending on your investments and positioning. While most people would flock to the most notable and top-performing crypto projects, you need to know upcoming projects or “hidden gems” that can help you grow your profits exponentially. In this article, we shall look at a few techniques you can adhere to, to ensure that your money is in the right place and that it shall yield positive results.

The boom in the crypto market has seen several platforms emerging left and right. These platforms host several coins and other digital assets. Many of these platforms do offer great options for users to invest in. Notable platforms that have become a household name and are famous in the crypto space include Binance etc. A concept that users must be aware of is the ICOs- Initial Coin Offerings. These platforms are used for fundraising mechanisms for crypto start-ups. While they appear at par with IEO, they are widely accepted as risky. Since the ICOs are hosted on the project’s website, they are prone to being hacked, scammed, or face technical anomalies that could endanger the whole process. If we speak about IEOs, they are generally safer than ICOs. IEOs are launched on properly designated exchanges like the ones cited above. Safety and authenticity are ensured because the process for IEOs is stricter. After start-ups submit their projects to these exchanges, they go under tight scrutiny and vetting only after the exchanges perform the due diligence; only then are the projects allowed to start their token sales.

This is an article to help you with your research, but it is vital to conduct your own research, independent of any views and biases. It is essential to stay updated and acquire information, but only you can decide what is best for you. Put your head down and go through the basics.

Here is a checklist you should have when considering a project:

A whitepaper generally outlines a project’s technicalities, specifics, aims, solutions, and tokenomics. A whitepaper will be written unambiguously, not trying to phase through technicalities by complicating things for ordinary users. It will clearly lay out the problems that a project aims to solve. Act alert and intelligent if a project’s whitepaper is vague and too complex to understand. Take it as a green flag if a project’s whitepaper is easy to read and lays out its objectives and how it shall operate. If going through a lengthy piece is laborious for you, the abridged versions are as helpful.

When considering a project, it is essential that you ensure that the project has goals aligned and that the plans are attainable. Don’t fall for “too good to be true” projects because they don’t have a solid plan. Most such projects enter the arena with much pomp and glamour, but their launch never sees the light of day. Such projects are called “vaporware”. These projects are common in the crypto market, so it is advised to be wary of them.

It is essential to research the people who are behind the project. In a start-up plan, the team play a vital role. And with millions of dollars at stake, reputation, background, and experience matter significantly. If the team behind the project is cohesive, harmonious, and has considerable expertise and experience, you can bet on the authenticity with relative ease and trust.

A problem can only be solved if there is actually a problem. When looking to stick to a project, pay heed to the problem it wishes to solve. Look if there is a problem, or if it is of the magnitude that makes sense, or if another project has already solved it. Talking of the magnitude of the problem, see if the problem only affects a small number of people. If that is the case, you can bet that the project’s potential for growth will be dwarfed. Unless you tell a principal to stand to invest in a project because it solves a problem you are sensitive about, it is advised to stay away from such projects.

The community associated with a project tells you a lot about the project. Suppose the project is strong enough to generate interest in the community, the project has sizeable social media followers, or active users have positive reviews about the project. In that case, you can be confident in making it a part of your portfolio.

The total value of all mined coins or tokens is commonly known as Market Cap. It is an excellent measure to gauge a project’s size and potential. Market Capitalization also refers to the total value of the project. It is a reliable indicator of the project’s stability. It is generally accepted that projects with high market capitalization are more stable.

Research is vital when it comes to money or anything for that matter. Also, consider that encompassing and evaluating all factors and aspects isn’t humanly possible, nor is it plausible that your analysis will be a hundred percent on the dot. While it is hard to do so, the above steps can benefit you. They can give you an idea about where the project is heading and how it shall perform. Go out, pick a project, and do ample research on it. If it checks out, place your trades, sit back, and wait for the results to lighten you up.

I am a financial analyst who shares views only for the purpose of learning and information. I am not your advisor, nor should you take any trade based on my workings. Always consult your independent financial advisor before entering into any financial trade. I assume no loss or damage caused by any trade the market participants took.

If you like my work, clap for me! It will help me in reaching out to more people. It will also raise my morale, and I will share more of my work! Your comments are most welcome. You are also welcome to disagree with me!

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