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The importance of choosing a good crypto project.

amestyj - 2024-03-06 22:06:27

Choosing a cryptocurrency project often becomes a dilemma, because it is no secret to anyone that the investor is in search of that supposed gem as those projects with potential that very few people talk about have been called nowadays. When the possible bull markets approach, a large number of projects in different categories games, defi, artificial intelligence among others start to come out, there become so many projects that we do not know which one to invest in and we end up many times on youtube listening to the suggestions of some supposed specialists in the area and we are ready to invest if we carry out the respective research on the project that they recommend to us.

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Although I have been in this crypto financial market for more than five years, I consider that there is still a lot to learn, but despite that I will mention below some basic aspects that a novice investor should take into account when choosing a crypto project, of course, it is my criteria and you may or may not agree.



- One aspect to consider is to know who is part of the team that makes up the project, taking into account that there are many scammers, you can locate them on LinkedIn where you can verify professional information and other aspects that you consider important.



- To know about the solutions or products offered by the project, this will allow us to know in which category it is located, the competition it has in the crypto ecosystem and what growth potential it could have in an upcoming bull market or on the other hand the number of possible investors it could attract.

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- It is also relevant to know the market capitalization that it has, this can be a benchmark to determine the level of growth that it can have in the short and medium term, taking into account that projects with low market capitalization if a large capital is injected the price of the token can suddenly rise. Of course, investing in projects with low market capitalization is a risk compared to those that have trillions of dollars invested that make it look more stable.



- Likewise, a crucial point for the growth and sustainability of the project is the token economy, known as tokenomics. Because it does not matter the tokens but the rules that are established for the distribution, that's what I mean by how the distribution of the token is structured, the ideal would be that the team does not keep much percentage of the token and in case the percentage is high that there is a block of the same for a considered period and perform the programming of the release of said tokens progressively.



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- Also take into account if there is a maximum amount of tokens or they are unlimited, with this information you will be able to see if we are talking about a project that can be affected by inflation if it is not handled correctly or a project where in the future there is a shortage and when demand increases it can rise a lot in price. I recommend you to research about the token economy to get a clearer idea, for me, there is the key to success associated with the community you have, which we will talk about next.



- As mentioned in the previous section, the community is essential in a project, it is the one that gives it the push through many aspects such as investment and marketing, for this, they can check the social networks of the project such as twitter X, telegram, discord. To give an example of the importance of communities, he will mention the memes that do not contribute anything, but despite this, many have grown up due to the push of communities and every day more and more people invest in this type of projects influenced by some member of these communities.



Dear readers, these are aspects shared with you by a beginner investor who is constantly educating about blockachain projects, educate yourself to avoid being scammed by unscrupulous people, it will also help you to generate a lot of money in this market if you invest in good projects.



Until the next installment, have a great week.


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Sources


- Images: the images used are in the public domain taken from Pixabay
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- Agrotecnia banner: made by the author @amestyj with own images


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