Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. Cryptocurrencies are...
Cryptocurrencies are digital assets that use cryptography to secure transactions and control the creation of new units. Cryptocurrencies are decentralized, meaning they are not controlled by any central authority or intermediary. Some of the most popular cryptocurrencies are Bitcoin, Ethereum, and Dogecoin.
However, there are thousands of other cryptocurrencies that are being developed and launched every day, each with its own unique features, use cases, and potential. Some of these cryptocurrencies may become the next big thing in the crypto space, while others may fade into obscurity.
How can you identify the most promising crypto projects and tokens to watch out for? In this post, we will share some tips and criteria for finding and evaluating new crypto projects and tokens, as well as some examples of the most promising ones based on our research.
Tips and Criteria for Finding and Evaluating New Crypto Projects and Tokens
There is no definitive or foolproof way to find and evaluate new crypto projects and tokens, as there are many factors and variables involved. However, here are some general tips and criteria that can help you in your quest:
Do your own research: The first and most important tip is to do your own research (DYOR) before investing in any new crypto project or token. Don’t rely on hype, rumors, or recommendations from others without verifying them yourself. Use various sources and methods to gather information, such as:
- Whitepapers: These are documents that explain the technical details, vision, goals, roadmap, team, and tokenomics of a crypto project or token. They can help you understand what the project or token is about, how it works, what problems it solves, and what value it provides.
- Websites: These are the official online platforms of a crypto project or token. They can help you find the whitepaper, social media links, contact information, news updates, and other relevant details of a project or token.
- Social media: These are the online channels where a crypto project or token interacts with its community and potential investors. They can help you gauge the popularity, activity, engagement, sentiment, and feedback of a project or token. Some examples of social media platforms for crypto are Twitter1, Reddit2, Telegram3, Discord4, Medium5, etc.
- Forums: These are online platforms where people discuss various topics related to crypto. They can help you find opinions, insights, reviews, ratings, and other information about a project or token from other users. Some examples of forums for crypto are Bitcointalk6, CryptoCompare7, Cryptototem8, etc.
- Blogs: These are online platforms where people write articles or posts about various topics related to crypto. They can help you find analysis, commentary, news, trends, and other information about a project or token from experts or influencers. Some examples of blogs for crypto are CoinDesk9, Cointelegraph, The Motley Fool, etc.
- Podcasts: These are audio or video programs where people talk about various topics related to crypto. They can help you find interviews, discussions, debates, stories, and other information about a project or token from hosts or guests. Some examples of podcasts for crypto are The Pomp Podcast, Unchained, What Bitcoin Did, etc.
- YouTube: This is a video-sharing platform where people upload or watch videos about various topics related to crypto. They can help you find tutorials, reviews, demonstrations, predictions, and other information about a project or token from creators or viewers. Some examples of YouTube channels for crypto are Coin Bureau, Altcoin Daily, Crypto Zombie, etc.
Use multiple criteria: The second tip is to use multiple criteria to evaluate a new crypto project or token. Don’t base your decision on a single factor or metric without considering others. Use a combination of quantitative and qualitative criteria to assess the strengths and weaknesses of a project or token. Some examples of criteria to use are:
- Market capitalization: This is the total value of all the coins or tokens in circulation of a project or token. It is calculated by multiplying the current price by the total supply. It can help you measure the size, popularity, and potential of a project or token.
- Price: This is the current value of one coin or token of a project or token. It is determined by supply and demand in the market. It can help you measure the profitability, affordability, and volatility of a project or token.
- Volume: This is the amount of coins or tokens that are traded in a given period of time (usually 24 hours) of a project or token. It is calculated by multiplying the price by the number of transactions. It can help you measure the liquidity, activity, and interest of a project or token.
- Supply: This is the number of coins or tokens that are available or in circulation of a project or token. It is determined by the emission rate, the total supply, the burn rate, and the lock-up period of a project or token. It can help you measure the scarcity, inflation, and deflation of a project or token.
- Utility: This is the function or purpose of a coin or token of a project or token. It is determined by the use case, the problem, the solution, and the value proposition of a project or token. It can help you measure the relevance, innovation, and differentiation of a project or token.
- Team: This is the group of people who are behind or involved in a project or token. It is determined by the background, experience, expertise, reputation, and vision of the founders, developers, advisors, partners, and investors of a project or token. It can help you measure the credibility, competence, and commitment of a project or token.
- Community: This is the group of people who are interested in or supportive of a project or token. It is determined by the size, activity, engagement, sentiment, and feedback of the users, fans, followers, members, and supporters of a project or token. It can help you measure the popularity, loyalty, and growth of a project or token.
Compare multiple projects and tokens: The third tip is to compare multiple projects and tokens that are similar or related to each other. Don’t focus on a single project or token without considering others. Use a comparative analysis to identify the advantages and disadvantages of each project or token. Some examples of ways to compare projects and tokens are:
Category: This is the type or genre of a project or token based on its main feature, function, or purpose. Some examples of categories for projects and tokens are:
- Bitcoin: These are projects and tokens that are based on or inspired by Bitcoin, the first and most popular cryptocurrency that uses proof-of-work consensus and has a limited supply of 21 million coins.
- Ethereum: These are projects and tokens that are based on or compatible with Ethereum, the second-largest and most versatile cryptocurrency that uses smart contracts and supports various decentralized applications (dapps).
- Stablecoins: These are projects and tokens that are pegged to or backed by fiat currencies (such as US dollars or euros) or other assets (such as gold or silver) to maintain a stable value and reduce volatility.
- DeFi: These are projects and tokens that are related to decentralized finance (DeFi), which is an umbrella term for various financial services and products that are built on blockchain technology and operate without intermediaries.
- NFTs: These are projects and tokens that are related to non-fungible tokens (NFTs), which are unique and indivisible digital assets that represent ownership of various items such as art, music, games, collectibles, etc.
- Meme coins: These are projects and tokens that are based on or inspired by memes, which are humorous images, videos, texts, etc. that spread online and often have a cult-like following.
Platform: This is the blockchain network or protocol that a project or token is built on or runs on. Some examples of platforms for projects and tokens are:
- Bitcoin: This is the original blockchain network that was launched in 2009 by an anonymous person or group known as Satoshi Nakamoto. It uses proof-of-work consensus and has its own native cryptocurrency called Bitcoin (BTC).
- Ethereum: This is the second-largest blockchain network that was launched in 2015 by Vitalik Buterin and others. It uses proof-of-work consensus (soon to transition to proof-of-stake) and has its own native cryptocurrency called Ether (ETH).
- Binance Smart Chain: This is a blockchain network that was launched in 2020 by Binance, one of the largest crypto exchanges in the world. It uses proof-of-staked-authority consensus and has its own native cryptocurrency called Binance Coin (BNB).
- Solana: This is a blockchain network that was launched in 2020 by Anatoly Yakovenko and others. It uses proof-of-history consensus and has its own native cryptocurrency called Solana (SOL).
- Cardano: This is a blockchain network that was launched in 2017 by Charles Hoskinson and others. It uses proof-of-stake consensus and has its own native cryptocurrency called Cardano (ADA).
Performance: This is the historical or current price movement or trend of a project or token in the market. Some examples of performance indicators for projects and tokens are:
- All-time high (ATH): This is the highest price that a project or token has ever reached in its history.
No comments