Although the industry Cryptocurrency A fledgling industry, but today with millions Crypto project We are facing Projects that work in different areas of DeFi, GameFi, Web 3, and other decentralized applications. In this crypto uproar, one project is suddenly called the savior of all humanity, and another is a fraud and scam. Among the noisy concepts like Metaverse, Play To Earn and bankless finance to choose The best crypto projects We are stunned. Crypto leaders about Find the best cryptocurrency project They have a sacred phrase: “Do your own research or DYOR”. With the homeland of blockchain and Strategies for finding the best crypto projects be with
Strategies and steps to find the best crypto projects
If we want all methods and solutions for Choosing the best digital currency projects We may need hours to explain. But among the most efficient criteria, we can mention 11 items, each of which will be explained below.
1. Check the market value (Market Cap).
If you are not looking for a specific project and don’t know where to start, start by checking the market cap of the projects. According to your risk tolerance and expected return, filter the market value of the projects and look for the right project in one of the following groups:
- Micro-Cap: Projects whose market value is less than 50 million dollars.
- Small Cap: Market value less than 1 billion dollars
- Mid CapMarket value: $2 billion to $10 billion
- Large Cap: The market value is more than 10 billion dollars
On site Coin Market Cap (CoinMarketCap) You can easily filter projects by market value. In the following example, according to the expected return of 10 times, the microcap group projects with a market value of $5 million to $10 million have been filtered.
Why is market cap important in finding the right projects?
If the fundamental information of a token in the micro-cap group is excellent, then moving this token with a market value of 5 million dollars to a market cap of 50 million dollars is much easier than a token that wants to go from a market value of 20 million dollars to 200 million dollars. Of course, the internal information of the project is also important, such as the volume of transactions. It doesn’t matter what your purpose is for buying a token, however, the Trading Volume indicator is a great indicator to understand the state of the token itself. If the trading volume of a token is too low or too high, you should suspect a fake or other problems. So it is better:
- Every 24 hours, the token market cap changes between 10% and 50%.
- Generally, the market value of a project should have a turnover once every 2 to 6 days.
- If the trading volume is steady, there is no problem, but you should be suspicious of any explosive trend.
2. In which exchanges is your desired token listed?
Is your chosen token listed in a valid exchange? How many exchanges have listed this token? If the token is only in decentralized exchanges such as Uniswap or Sushi Swap a deal is made, you need to concentrate more; Because unlike centralized exchanges, decentralized exchanges do not have strict supervision and legislation for listing tokens, so scam tokens may also be listed in these exchanges.
in the selection The best crypto projects The next point is that you should monitor the volume of transactions of the desired token in different exchanges. Are these exchanges large enough to provide easy access to all users if the project grows? If the token is not listed on a major exchange, its upward movement will not take place. In other words, the token is only exposed to a small community and a small number of users invest in it. To find out about the credibility and popularity of exchanges, you can visit the site CoinGeko use.
3. Check the fundamental information of the project
Before investing and Choosing the best project crypto Be sure to do fundamental analysis. In fundamental reviews, it is better to find answers to the following questions:
Who are the founders of the project? Are the founding team members experts and experienced? Do they have nicknames or do they introduce themselves with real identities? How do developers use the combination to build a new technology? How is the token allocation of the project? Is a high percentage of tokens allocated to the founding team and investors of the project?
When the price of the token increases, is there a risk of dumping by the project team, or are most of the tokens allocated to the platform’s community? Have they done code review and token audit? Have they been reviewed and approved by a third party White Pepper? Does the project have the institutional support of investors? In case of encountering a problem, is there the necessary capital to continue on the path according to the project roadmap?
The sites Messari, Binance Research and ICO Drops will help you understand what is going on in the project and find answers to these questions. The purpose of fundamental analysis is to get a general idea about the project:
- What is their value proposition?
- Who are the investors of the project?
- What is the token economy or Tokenomics project?
- What technologies do they use?
According to the answers, write down the most salient points of each project. If the project information is very old or there is no specific information about it, do not skip this simple issue. Pay attention to the token allocation and see who has the most share. If a large whale has the largest share, this is a serious warning; Because when the price of the token increases, big shareholders can dump the capital price of other small investors. Find projects where the majority of tokens are in circulation and at the disposal of the project’s user community. Avoid entering projects where most of the tokens are in the hands of founders, investors and whales.
Check out the project team
Are the project developers strong enough? Is the marketing of the project done correctly? What experiences do these people have in the field of blockchain or gaming? Check out their LinkedIn, Twitter, and GitHub accounts to find answers to your questions and learn about their involvement in the platform’s community.
Check the background of the project
To know about the previous activities of the project, refer to their blog, website and social networks.
- Has this project previously partnered with reputable blockchain or gaming platforms?
- Have venture capital companies or venture capitals (VC) invested in this project?
- Is there any information about the development plans of the project? Is there a detailed notification in this regard?
- Does the project team actively interact with the platform community? Are there any Q&A sessions? Are there freebies for community members?
To find out the answers to these questions, check out the team interviews. Watching YouTube interviews, Twitter videos, and the like is a good way to quickly learn about the goals and plans of the founders of the project (although it’s best to watch the videos in order and set the video playback speed to 1.5x to save time). .
The importance of the platform’s user community is not hidden from anyone. Building a successful project is not that difficult, but building a strong user community from scratch is definitely a difficult task. Although it takes time, it shows the team’s commitment to the platform community. A strong user community means dedicated fans who always defend the platform and market the project for free.
Be sure to check the white paper of the project. What are the goals of the project? What plans have been made to achieve these goals?
How is the Tokonomics project designed? How to get, burn the token and what are its uses? If any of these items have defects, the project will face many ups and downs.
What are the long-term strategies of the project? For example, many games start with a simple design, but have plans to add more features. Does it really run these programs? Of course, it is not necessary to write a research paper. The answers to these questions will make your mind clearer about the project.
4. Check roadmap and project roadmap
To Choosing the best digital currency projectCheck the project roadmap and find answers to these questions. What measures did the previous stages of RODAMP include? Were they done on time or with a delay? What will happen in the future? Is the project team prepared for these new measures? What does the platform community on Discord, Twitter or other media think about the project’s future actions? You can check the news related to the project by looking at Decrypt, CoinDesk and CoinTelegraph sites.
5. What is your purpose for entering the project?
May do all the necessary research for Find the best crypto project Do it completely and you will still have a hard time deciding. Now you have to choose according to your goals. Is this a community that you can be a member of for years? Are you personally interested in playing in a certain project in the field of gaming? If your answer is negative, be more careful; Because if the price goes down, you will most likely sell the token before the project starts growing.
6. Determine the project exit plan before investing
Specify possible mistakes and your expectations from the project. If your expectations are not met, have a plan to compensate for the loss. Determine a plan to exit the project according to the desired profit and loss.
7. Read other people’s comments on social media
Although other people’s opinions are not 100% correct, this method is a good starting point for checking different opinions about crypto projects. But be careful that the people you get ideas from are not accomplices of the project (Shiller). A shiller is a person who advertises a particular coin or token with the aim of attracting the attention of community members so that members are encouraged to invest in this token. In order not to fall into their trap, it is enough to see who they are talking to and what they are talking about. If they only talk about how amazing this token is and talk about the price of digital currency increasing 100 times, it is better not to follow their advice.
8. Keep an eye on the websites introducing airdrops
site Airdrops.io and the Airdrop introduction section of the Coin Market Cap site to the address Coinmarketcap.com/airdrop Good resources to learn from New crypto projects are. Airdrop is a type of marketing activity. In fact, the project aims to spread the word about a new digital currency by sending coins or tokens to wallet addresses for free.
9. Pay attention to ICO websites
site Icodrops.com and the Coin Market Cap website at the address Coinmarketcap.com/ico-calendar They are one of the best options to learn about initial offerings (ICOs). Information such as fundraising goals, coin or token price, White Pepper Project link and other related items are provided on these sites.
10. Check out the listings on Crypto Launchpads
Crypto launchpads are platforms for raising capital by developers of start-up projects. Each crypto project must go through a thorough review process before being listed on these launchpads. In other words, only projects enter these platforms that have gone through the review process and have been proven to have a high chance of success; So launchpads do the bulk of your research work. In this regard, you can use the sites Kcclaunch.net And Gamefi.org use.
11. Find popular coins and tokens
On the website of Kevin Gekko at the address Coingecko.com/en/discover You can find popular cryptocurrencies. It is not bad to visit this site from time to time.
In a world full of millions Digital currency projectto find Successful and profitable projects It is not so simple. Some projects get out of the water with a lot of hype of fraud and scams, and others quietly and suddenly, achieve great success. They definitely don’t give free cheese to anyone and it is our duty to do it before Investing in the world of digital currencies To Choosing the best crypto projects Do a complete and comprehensive investigation. Strategies such as fundamental analysis, white paper due diligence, founders, development team background, project goals and roadmap, market cap, comments from the platform’s user community, and the like help us find high-potential projects. Of course, the many sites we mentioned also shorten our path. Do you also agree with the opinion of “do your own research” by experts in this field? What strategies do you use to find the best crypto projects?