Everyday many new tokens and coins are launched and a lot of these are nothing scams. From a list of hundreds and thousands of coins, what are the factors and what should you look for? This article is going to help you with that.
Look and Study About The Team
Coins and tokens that have amazing development teams are generally the ones that attract the holders. When looking for new coins to invest especially the ones that have been launched new, look for the team and their leadership. Is the developer team good and with good knowledge? Is the CEO credible and reputable or has worked in reputable companies? If not, then it is definitely a coin that has a shady look to it. You can look at their research community such as Github to see what the devs are up to.
Whitepaper
Whitepaper is probably one of the most essential part of any crypto project. The purpose of the whitepaper is to rewrite the technical details in such a way that they can understood by a normal person, someone who doesn’t have knowledge about the blockchain network. If the project doesn’t have a whitepaper or in case it does have it but its poorly written, then it’s something that you should be vary of.
Website and Community
Whenever you learn about certain coins what is the first thing that most people do? The visit website and their community pages. Some coins like $LUNA have amazing websites that grabs attention the moment you open it. Websites should be attractive with enough details that can grab the reader’s attention. Their community pages like Twitter, Discord, and Telegram Channels should be active with no spamming and only necessary details about the projects.
How are they Marketing?
Sometimes you open a tweet and see certain people spamming the whole community with coins. A lot of this is paid marketing, the main purpose is to grab the attention of as many people as possible. A marketing technique that kind of makes me mad as useful information is just lost in this whole scenario. Go through their communities. Are the people shilling those coins credible or not?
Which platforms have listed the coin
Is the coin listed on credible exchanges or not? It’s not necessary that the coin has to be listed on major exchanges in order to be a good coin but you should take notes as to what kind of platforms are they aiming for. How many holders are there? After the launch of De-Fi apps, many coins started getting listed there and a lot of those were fakes and copies of a real and legitimate coins but with the same name in order to trick the investors. So the best way is to look at the contract addresses of the coins.
Look at Audit and Roadmap
Crypto projects that haven’t been audited are a no-go zone for me personally. Look for the statements of the Auditors like Certik about how the project has performed on their scale. Look at their roadmaps and what are their future plans in store. Are they working on new updates? Are they looking for new listings? Are the devs collaborating?
What are they bringing to the Community?
A lot of these newly listed scam tokens and coins are nothing more than copy paste codes that is available on several websites. You should look for the basic fundamentals and technical of the coins. What are they bringing in the market? Is it something revolutionary? Do they have backers? These questions hold weightage.
You should never recklessly invest in anything, it is your capital and you should always confirm about which coins are you going to invest in. If the project is fundamentally sound then its going to work its way into adoption and the more its adopted the more it is going to soar high.
