The crypto sector is one of the biggest sectors in the financial sector. Even though most people are just familiar with ‘Bitcoin’ and ‘blockchain,’ the crypto sector goes farther than that. Going by the various crypto token aggregators, the crypto sector houses more than 4,000 digital assets on respective blockchains. With this, investors are generally at a loss in picking out the best from the list of tokens. Picking out the best is not just a random activity. It is bordered on some key activities. In this article, we will be looking into the various ways to spot the best crypto projects.
What are cryptocurrencies?
Cryptocurrencies are assets that are available for a host of use cases in the crypto market digitally. Digital assets do not possess the basic quality that physical cash has but are still one of the most used exchange methods. Digital assets are stored on wallets using keys that allow traders to access the stored assets. One of the reasons traders are moving to these assets is their ability to bring in rewarding returns. However, most of them are volatile as they depend on some factors to increase or decrease value.
How to spot the Best Crypto projects
With more tokens entering the crypto sector every day, it has become increasingly difficult for traders to recognize good and evil. This is because scammers and hackers have been on the prowl to scam investors of their hard-earned money. However, with the few steps below, you will be able to recognize a good project on the crypto market before you invest in them. They are;
Choosing the best crypto project you want to invest in is one of the most integral factors that should be considered. The Whitepaper of a crypto project outlines all the ideals and aims of the project to be developed. The Whitepaper also lists the project’s use cases and how relatable it will be in the real-world setting. By going through the Whitepaper, investors would be able to decide if the project is something they want to forge ahead with. Also, investors need to be wary of plagiarism of other projects Whitepaper. Doing this removes room for doubt while showing the legitimacy of the project that is to be developed.
The Development team
Checking out the development team behind the project is another integral factor to consider when choosing a good crypto project. One of the few questions that this should answer is how good the development team is and how reliable they are. Another thing to consider in this aspect is the experience of the development team members and how long any of them have worked on crypto projects. The main drive behind these questions is to determine if the team behind the project can pull off the project. This will help the investor from losing funds if the project fails in the long run. It would also ensure that scammers are not creating the project.
Social Media presence
For a project to be successful in the crypto sector, one of the main ingredients that it needs is a massive following. Checking out the presence of the project on social media would go a long way in letting you know if the project is on the right track or not. In this case, you must ensure that the project has a huge community of followers among the top 5 social media platforms. Some of the few social media that could make a difference are Twitter, Reddit, Facebook, and Telegram, among other websites. Knowing this will also open you to various other investors and their opinions about the project. Another advantage of this is the announcement from the development team through these channels. This will enable you to update yourself with the latest events regarding the project.
Asides from the social media following, the project needs to have a very active community if it is going to be successful. In most cases, companies tend to open up a community for their followers on various platforms such as Telegram and Reddit. In other cases, most projects are now taking their community to Discord, where they can discuss at length. Another essential platform is GitHub, which allows traders and investors who are familiar with codes to see how good the project’s potential is. The hype generated by the growing community would determine the eventual price of the token. It would also trigger other bystanders into joining the community, pushing it for broad adoption.
Market cap will continue to be another great determinant for how far a token will eventually go when it lists. This is because the market cap increase as the tokens skyrockets in value. If the market cap of the token is already high, it would have less space to grow higher. This will, in turn, cause the token to be stagnant. Asides from this, another thing that should come to mind is the number of tokens in circulation. Also, an investor needs to know basic things like the majority holders of the token and who controls the larger part of it. This is because some traders hold tokens for their short gains and dump them after seeing gains.
Even though very integral, this factor is one of the most neglected when picking out a good crypto project to invest in. This is because trading crypto is not allowed everywhere across the world, which provides legal implications for some investors and companies. For instance, if a company decides to launch a crypto-related product in Nigeria, it won’t be successful. This is because Nigeria has banned the use and trade of digital assets since last year. This is one of the reasons why traders should bring themselves up to speed with the happenings around the world in terms of crypto.
This is also another integral factor in choosing a crypto project to invest in. Although most times, the hype of a major exchange listing would bring the hype, the projects might eventually not get it listed on the exchange. The majority of them use the news to build up the token price, pushing investors to scoop it up as it would be available on popular exchanges. Even though listing on big exchanges does not entirely determine the coin’s movement, there would be more trust if there was a listing on a high-profile exchange.
Trading or investing in digital assets has never been an easy activity. This is because of the various things that should be considered. Abiding by the factors above would go a long way in helping investors and traders minimize risks. It is also advisable that traders research the kind of tokens they invest in while abiding by the rules above. It is also good to diversify one’s portfolio in case of something tragic. The crypto market does not work well when traders put their eggs in one basket.
The post How To Spot A Good Crypto Project – Don’t Do THESE Mistakes! appeared first on CryptoTicker.
Check live crypto rates here
Start trading today – See our list of exchanges
cialis 20mg ca order viagra for women online viagra 100mg generic
cialis pills 10mg Buy cheap cialis online viagra australia
buy tadalafil 40mg for sale order tadalafil without prescription symmetrel 100mg sale
buy generic revia 50mg letrozole 2.5 mg pills buy aripiprazole
buy generic revia 50mg buy aripiprazole 30mg pills order aripiprazole 30mg sale