For all those who intend to earn a lot from Crypto, this is an article you should read to be able to assess which ones can bring you the most profit
(with this, you can foresee potential price explosions)
What is a whitepaper?
A whitepaper is a document that explains in detail how a cryptocurrency or blockchain project works. It is like an 'official presentation' of the project, where they tell you what they do, why it is important, and how they plan to achieve it.
Where can you find it?
On the project's official website (look for a section that says 'Whitepaper').
On reliable sites like CoinMarketCap or CoinGecko, where they usually have links.
On the project's social networks, like their Telegram group, Discord, or Github.
What a good whitepaper should have:
1. What problem does it solve:
What are they trying to improve or change?
* This should be clear. And it helps you assess whether you consider its function useful *
2. What makes the project special:
Why is it better or different from other similar projects?
* Details such as transaction consumption, utilities, or specific benefits you will gain from having it *
3. How it works:
A basic explanation of the technology they use (for example, how their blockchain or tokens work).
* Required to understand the project *
4. Money plan (tokenomics):
How many tokens are there? What are they for? How are they distributed?
* To know if the value can be diluted over time due to use / issuance of more coins or if it can appreciate due to its scarcity or exclusivity *
5. Their future plan (roadmap):
Dates and objectives of what they want to do in the future.
* To specifically know the growth intentions and established objectives of the project *
6. Who is behind the project:
Information about the team and their experience. It is better if they have a background in technology or business.
* It is not the same to have a group of mathematicians behind the project as it is to have the baker from your neighborhood *
(Yes, it is advisable to find out 'who is' the person or people behind a project to avoid it being someone who does not exist and falling headfirst into a scam)
7. How you will use the token:
Does it have real utility or is it just for speculation?
* That is the difference between making an investment or making a bet *
8. How they involve people:
Do they have an active community? Do they allow users to help make decisions?
* Knowing what kind of community is behind it can give you an idea of whether it is safe to make the purchase or if you risk losing money *
If the whitepaper is clear, logical, and has a good plan, it may be a good project.
If it seems confusing, lacks important information, or makes unrealistic promises, it's better to be cautious.
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