From the Ukraine conflict to countries working to make bitcoin legal tender, more and more investors are now flocking to cryptocurrencies – so much so that the market reached an impressive $2.21 trillion by the end of 2021.
With space moving at an incredible pace, you’d need to burn off the midnight oil to keep up with the latest trends, participate in relevant Discord conversations, and read all the newly released white papers. But while you still have to do your own research, as a crypto investor and founder of a blockchain-based company, I’ve put together some lessons that might help you.
Do your due diligence
Remember when Pincoin’s founders made $660 million worth of investor funds disappear in 2018? The crypto world is not without its problems, which is why you need to take the time to interact with the team behind each project and learn about their background and expertise.
First, analyze their social media. Have you ever successfully collected donations? Is there negative reporting? Second, look at how they communicate. Are they in touch with their community on Twitter/Discord? And how far have they executed according to their roadmap?
Then evaluate the vision, purpose and use of the token. What is the value proposition? Because if you just want it to be a lousy copy of Ethereum that doesn’t solve its existing problems, don’t waste your time.
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Look at the “DSS”.
Always consider these factors to assess the long-term viability of a project:
Decentralization: Crypto is all about no regulation and no control. If a project has an entity or group of people with too much ownership of the token, the power could be abused — a red flag for investors.
Scalability: Look at coins that can scale and process more transactions per second over time. If Ethereum can only handle 15 transactions per second and Solana can handle 65,000, you know which token might be a wiser investment. Another useful metric is the number and profiles of developers building on the token’s chain.
Security: If a coin’s security structures are poor, it could be vulnerable to attacks or “double spending”, defeating the purpose of trusting the network. So be sure to learn about security protocols before investing.
Most top coins have the same purpose – to be a medium of exchange. So always keep the context in mind too – it’s the community and trust in the coin that helps a project stand out. For me, Kadena was one of the coins that ticks all the boxes.
From Tezos to Solana, it’s evident that coins aiming to overcome the limitations of Bitcoin and Ethereum will have a bright future – if they manage to marry scalability and speed. It wouldn’t be surprising if the majority of investors would bet on new coins over time for bigger profits and more potential in the long run.
https://techround.co.uk/cryptocurrencies/jeremy-foo-of-tripcandy-crypto-in-2022/?utm_source=rss&utm_medium=rss&utm_campaign=jeremy-foo-of-tripcandy-crypto-in-2022 TripCandy’s Jeremy Foo: “Crypto in 2022: How to Best Choose Your Investment Tokens”