How To Invest In A Promising Cryptocurrency?
There are several thousand cryptocurrencies and new cryptocurrencies come out every day. It is not easy to choose which projects to set your sights on when faced with such an important catalog.
Find promising cryptocurrencies
Cryptocurrencies follow trends, if you can anticipate them, follow them and get out of them before the rest of the market it will be a jackpot.
From the summer of 2021 and 2022 the hype (trend) of the moment is on the side of NFT and metaverses. Many projects related to this have seen their prices explode and can represent great investment opportunities (check telcoin price).
Avoid scams
The world of cryptocurrencies is vast and complex. It is therefore important, in order not to make mistakes, to follow a few simple principles when you want to invest. The purpose of this part is to expose the key elements to be analyzed so that you are able to detect a promising and high-potential cryptocurrency of a failed cryptocurrency.
If a project guarantees you a minimum return on investment or encourages you to invite many users to earn more, it is probably a ponzi scheme. It can grow very quickly and bring you money but it will inevitably end up collapsing when there are no new entrants and it will make you lose all your investment.
There are a lot of scams, do not be fooled by false promises and do not blindly follow the advice of other people.
Rely on your first impression
As in real life, the first impression rarely leaves a second chance. The project in which you want to invest must appear irreproachable at first glance so as not to scare potential investors away. Start by analyzing the name and logo of the project in question. It may seem trivial but if the logo is of poor quality it can say a lot about the rest of the events.
Website
The website is the showcase of the project. How could a team carry out a technical project related to blockchain if it is not able to create a quality website? You should be able to find all the resources you need, this is the hotspot of your research.
In general, the website of a crypto project will allow you to access the following resources:
- Information about the project (objectives, white paper, roadmap, distribution of tokens, etc.)
- Team members and advisors
- Social networks
- Latest news
- History of the project (launch date, ICO, etc.)
A beautiful website and important activity on social networks do not mean that the project is of good quality and that you can rush with your eyes closed. Some projects spend a lot of money on appearance to make people want to invest.
Project
In this part I will talk to you about the important points to analyze regarding the project in which you want to invest (find out quant price). The latter must have a clear direction and tackle a well-identified niche. To help you in your analyses you will have to rely on the project’s white paper and roadmap.
White paper
This is a practical guide of a few pages dedicated to the presentation of a project or cryptocurrency. White papers are mainly used to convince people of the interest of a project. It is essential to read the white paper of a project in which you want to invest to fully understand the issues and feasibility. The white paper is very often available on the cryptocurrency website.
Roadmap
The roadmap makes it possible to graphically materialize the important milestones to come to carry out a project. It is a clear and precise action plan of the major steps the team must work on and the estimated time to complete each of these steps. If a roadmap exists, make sure it is respected and updated. If you see that the first milestone is already 6 months late, this is usually not a good sign for the continuation of events.
