The 5 fundamental criteria to consider before investing in a crypto project
Investing in crypto can be very profitable, but it is crucial to analyze the projects carefully before putting your money. Here are 5 simple criteria and supporting examples to help you choose a solid project, even if you are just starting out.
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1. A credible team
A serious project has a visible and competent team.
Example: If a project is led by developers who have worked on recognized companies like Google or Ethereum, it is a good sign. On the other hand, if their names are not mentioned or they have no experience in blockchain, be wary!
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2. A clear objective
Ask yourself: "What is this project for?"
Example: A project like Ripple (XRP) aims to improve international payments for banks. On the other hand, if a project simply promises to "revolutionize finance" without concrete explanations, there is a problem.
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3. An active community
A good project attracts a community of enthusiasts and investors.
Example: Projects like Shiba Inu have managed to stand out thanks to a strong community that supports them. Check social networks: if everyone talks positively about it, it can be a good sign. But beware of temporary "hypes" without foundation!
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4. Financial transparency (Tokenomics)
You have to understand how tokens are distributed.
Example: If 50% of the tokens are held by the founders, this means that they can sell them en masse and make the price drop. Favor projects where the tokens are well distributed between the team, investors and the community.
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5. A product that already works
A project that already has a product online is more reliable.
Example: Platforms like Binance (BNB) or Uniswap had usable products from their beginnings. Avoid projects that only propose an idea on paper (white paper), without any proof that they can realize it.
