Yes, in this article, I will discuss 4 important things that you should pay attention to before you buy crypto! Here I share how I found the next gem before someone else found it, and how you can be confident before investing in a particular crypto. So you have to read this article until the end!
But first, of course, let me emphasize first, this is not financial advice! These are just tips for finding potential crypto, and here I will not give instructions or mention specifically what crypto you should buy. OK?
LEARN THE NARRATIVE!
Any crypto, cannot be separated from the narrative. Narratives that will bring attention, and attention that will bring more liquidity. And more liquidity can push prices up! And this narrative is always changing, never static, because the players in this industry, including venture capital, institutions, market makers and others, are very creative in being able to create new narratives. On average, the narrative only lasts for 1 season, for example last season there was walk-to-earn, play-to-earn, but now what is popular is tap-to-earn. The sooner you can find potential new narratives, the greater your chances of getting huge profits in the bull market later.
Examples of narratives that are very popular in this cycle include Real World Assets (RWA), Artificial Intelligence (AI), Layer-2, Bitcoin Ecosystem, and others.
LEARN INVESTORS!
Every crypto project, whether layer-1, layer-2, AI, RWA, DePIN, etc. has investors. And the investors/backers of each project certainly have a very important role, because these investors are able to open more doors to collaboration in related industries, and of course get more attention from the market, both retail and institutional. Crypto projects that are supported/invested in by well-known VCs certainly have a greater chance of being successful, because of course the VCs have done their due diligence before they invest. So as a retailer, our task has been made easier.
However, one thing that needs to be remembered is that even VCs / early investors are our opponents in investing! Why? Because VCs certainly invest to make a profit! And it's no secret that many VCs make a profit by selling their goods to the retail market.
Examples of VCs you need to monitor: Binance Labs, Maelstrom, a16z, etc.
LEARN TOKENOMICS!
One important key before investing is to understand tokenomics and how it works! Studying tokenomics can help you understand the working mechanism, long-term value, inflation risk, usage incentives, project sustainability, economic feasibility, and security level of the token. This knowledge allows investors to make more informed decisions and minimize their investment risks.
If you are observant, you can immediately find out which tokenomics model will really benefit early investors, and which tokenomics model is considered very fair and possible to provide room for the project to grow in the longer term. You must avoid tokenomics which have characteristics such as: unfair distribution / more portions of teams and early investors, unlimited supply, lock-up periods that are unreasonable or can kill retail investors, lack of transparency, etc.
Those are 3 important things you must learn before investing in crypto, especially altcoins. Apart from these three things, of course there are many other factors that can also support it, such as utility, social sentiment, and others. But these three things can be your main standards in researching an altcoin.
Happy hunting!
