As the saying goes, if you fail to plan, you plan to fail.
With over 10,000 crypto assets to choose from, its always a problem for investors to know which one is good to put their hard earned money into.
After being in the cryptospace for a while I devised my own strategy that helps me to identify what crypto has the most promising future.
Though my strategy is not perfect, but it has really helped me alot to not fall prey to projects that keeps promising yet delivers nothing.
In this topic i will highlight on six areas that i look to find in any project before i make a decision to involve myself in.
Firstly, i check their community, people might ignore this but this is one key area i check before investing my hard earned money, for a project to succeed, it needs a strong community backing and if a project doesnt have this backing then the likelihood of it failing with the slightest FUD is very high.
The best social media platform i check is Twitter, and if i see the project has a lot of followers who are willing to push it forward then i jot it down.
Secondly, another area i look out for is partnerships. A project that partners with a great brand to me is very likely to succeed, some projects partners with Binance, Kucoin and some of the big boys in the game. Once i see this my blood becomes hot and ready to jump on the wagon.
Thirdly, i check their sponsor and investors, this is something that is very crucial in the crypto space, which people or entity have come on board to sponsor and also invest in this project and how much they are investing, once i find out entities are willing to put in $100 million in a project, i know they will make sure the project does not suddenly fail. With this at the back of my mind i move on to my fourth target.
Moreover, i look at their tokenometrics, what are their total supply, how many are in circulation, how many have been burnt, how many tokens are held by team, when are the team going to receive their portion. I consider all these before i make mine decision. Money is hard to come by so if you don’t do your due diligence, the project will dilute you and leave you holding a bag full of shit.
Furthermore i check the category the token falls under, is it Defi, Gamefi, Web3, NFT, AI, etc then i check the latest market trend to see if the category is what is currently trending, if that category is the current trend then something good can come out of it very soon.
Lastly, i look out for the problems the project is seeking to solve, if a project is not giving any utility but just lips services, no matter what, it will be bound to fail, so i check their real life use case and is it really a problem for the masses that will make them buy into the project? If it is yes, then i am good to go.
In conclusion, identifying a gem in a space that is mostly full of crap is very hard but if you have what you are looking for and you make sure your project meets that eligibility, you will never find yourself wanting in this space.
WHAT DO YOU ALSO LOOK TO SEE IN A PROJECT BEFORE YOU INVEST IN IT?