Alt coin investment can be a profitable thing in 2018. But, finding the right coin is very tough job. The market is filled with 90% of shit coins (they either scams or copycat coins that has no value to offer) making it even harder to find the right alt coins to invest.
If you are looking to invest in Alt coins for profit, this guide will definitely help you /not feel dumped. You will thank me later!
Today I will tell you some important factors to look in the project. So, that you will get an idea whether the coin is good or not. Without going all in all, you should definitely consider these things below. Let’s check them out!
Important Things to Look for in Crypto Startup
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Every tom, Dick and harry is coming up with an idea. Most of them have no value to offer. However, they create an extra problem. Even if the idea is good, do we need blockchain to solve that problem? If you are still convinced, ask these questions …
- Is it an original idea? Or it’s just a copy of another coin?
- Does it solve a real problem?
If the project is good and if it is protocol based like http which is now used by many. It has real-time use. Are they simply a DApps (decentralized app)? This can be built at any time. There is nothing special about them.
Look – if that project can be used by many for smart contracts like Ethereum or Ardor. If it is a protocol based – so, likely everybody will use it.
If you consider the project is good. Now, it’s time for us to check out their white paper.
This is the important thing where we can find every detail about the startup. We need to look at 3 important things in a White Paper to estimate success rate of the project.
Problem and Solution
What is the problem they are saying? Does it need blockchain to solve? Ask these questions and if you convinced it’s a good project and unique (not necessary rival projects also works great). Let’s move to ahead to next thing.
Team & Background
Who is the team behind the project and their previous experience related to project or at least blockchain.
Crypto economics is very important factor to decide whether we go in or not go at all. That take me to the coin distribution – if more than 50% of coins are in control of the team, then it is likely a suspicious one. And I will not be interested to invest in that.
Also, look for the raised funds. How they are going use it for the development. Check every detail on the white paper. Make a habit of it. It will be excellent knowledge in deciding coins in the future.
Look if the team is transparent. Do they have a team on the website? If so, look for LinkedIn profile and see if the team has done any successful projects earlier.
Look for CEO/CTO experience if they have any previous experience on blockchain and/or project related work. And check if they can really pull off this project.
Here we should also look for advisors board that is very responsible for a successful project. If the team had an influencer in their team, that would be an awesome thing to consider.
For any project to become successful, moss adoption is very crucial. If the project has a couple of notable partners or future collaborations, that will be a plus. You can find out that by reading their white paper.
This is one more important factor to consider while looking into different Alt coins. Without a proper Roadmap no project is going to succeed. So, Look – whether they a clear plan of action for the coming year or two.
Recently I have found an interesting Roadmap of Revain – the first blockchain review platform. you can check it here.
Marketing is very important to reach the audience and get more exposure in the market. It doesn’t really important how good is your product – if you don’t know how to promote it. Check if the team had any background in PR/Marketing fields. If so, they can do some magic.
Look for Mid-Range medium market cap project that has room to grow in the future. If coin has already got big Market Cap (like Ripple), there we can’t expect x100 returns in short period of time. So, look for small to medium range market cap projects and invest in them. And wait for them to grow.
Market Cap = Total coins * x.Coin Price. Is that even possible?
Where is x= your expected coin price.
Most of the scam coins can be found here. Check if they have professionally designed website or a simple word press site?
If they could not even design their own business website, how come they handle a project like this in blockcahin?
Look for their engagement in forums like Reddit, bitcointalk, social networks like telegram and see how they responding to the users.
You can check all the announcements at https://coinmarketcal.com/ whether it’s a hard fork, tie up, meetup, airdrop or anything you can track of a particular coin here. This is where the price goes up. So, you should be very clever to cash that nice bull run.
Look for source code on Github. Are they actively developing the project? How many repositories do they have? Do they have any suspicious things? These all indicates how good a project is.
You can follow this guy on YouTube for more technical explanation of the projects.
Over to You
This is all it guys! Follow these important factors before investing in alt coins all in all. Because, if you get struck up in a wrong project, you need to wait for a long time before you can exit from it.
This can help a lot in the future and as well to grow your investment as fast as much possible.
Note: Do your Own Research (#DYOR) before jumping into investing in these Alt coins.
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