In the promising but risky crypto market, thoroughly researching a project is a crucial step in making sound investment decisions. Below are detailed research steps you can apply to search for potential coin projects.
1. Search for Projects
Start by looking for new projects on reputable platforms such as:
Icodrops
Coinmarketcap
CoinGecko
These websites provide an overview of projects, helping you easily track and select potential projects.
2. Evaluate the Fundamental Criteria of the Project
Dev Team
The development team plays a core role in the project's success. Be sure to check:
Experience of the CEO, Founder, and the development team in the blockchain field.
Their activities: project progress, diligence, and ability to achieve goals.
Marketing and Community
A good project needs a strong community and effective marketing. Note:
Number of followers on Twitter, Telegram, Discord.
Frequency of information updates on media channels.
AMA (Ask Me Anything) sessions with the community, a positive sign of growth.
What Problems Does the Project Solve?
A good project needs to address significant issues in the community or society.
Compare the project with industry competitors to assess its prominence.
Criteria for comparison: TPS (Transactions per Second), TVL (Total Value Locked), number of dApps.
Useful websites for lookup: Defillama, Dappradar.
Token Distribution
Check the amount of Token distributed to the market, as this affects price and growth:
MarketCap (Cap): Price x Circulating Supply.
Small Cap: Coins have a stronger potential for price increase.
Cash Flow & Backer
Cash flow: The lifeline that sustains project operations in the early stages.
Backer: Large funds supporting the project, an important indicator to assess potential.
Useful websites for checking: Messari, Cypherhunter. You can also view the investment portfolios of large funds like Coinbase Ventures, Binance Labs, Alameda Research.
3. Apply and Manage Capital
After completing the research process, you need to manage capital and invest within your risk tolerance. Don't forget to continuously monitor the project and update information regularly.
Conclusion
Researching crypto projects not only helps you find potential coins but is also an important step to minimize risks. Hopefully, the steps and criteria above will help you make informed decisions and achieve the desired profits in this opportunity-filled market!
