According to Coinmarketcap, there will be over 13.24 million cryptocurrencies in 2025, and 95% of them are projects that won't last long in this market. To avoid investing in these types of cryptocurrencies, here are 5 things you should check before investing in a crypto project...
1. Read the White Paper
The white paper in French is this paper where the vision of a Crypto project is designed, it contains the smallest details of the project whether it is the marketing strategy, the team members, the roadmap, the usefulness and the functioning of the latter.
Why read the white paper? When you go to the market you read the labels to know what you are buying, no, it's the same with the white paper of a Crypto project...
Where you can find the latter most of the time you can find it on the project website even a shitcoin to a White paper if you notice a White paper that does not allow you to understand its project run away from this project...
2. Study the project team
The project team is all the people who have contributed and continue to contribute to the development of the project.
Knowing the members of a project is very important because you know who has already done what in this ecosystem. Imagine a project led by a guy like me and his friend đđ this project will not last long but a project led by Vitalik or ,#CZ and developers, a marketing team etc....
How to study a project's team? You can see them on the website and check the profiles on LinkedIn... You can also follow the project's GitHub or use the Cryptomiso website to see the developers' activity
3. Assess community and investor sentiment
A project's community represents everyone who supports the project and is willing to invest in it. A project may have the right fundamentals, but without a strong community, it won't last in the long term.
The stronger the community, the more likely the project is to grow and last on the market.
4. Take into account the interest of the Token
What is the token used for? What value does it bring to the investor? How many are there in total? And how many are in circulation?
It is very important to ask yourself these questions to evaluate the project in the long term, does the project have an application?
It is highly noticed that projects with solid applications or foundations last for a long time in this market.
5. Check the liquidity and the platforms on which the project is listed
Liquidity is the ease with which crypto can be bought and sold. A project without liquidity can lead to losses for investors.
If the project is in its early stages and is just on a DEX, check if the liquidity on the latter is locked.
If it is not locked, be careful because the creator can withdraw this liquidity and leave with it, we call it a Rugpull
Despite the above, investing in a crypto project requires reading the white paper, studying the project team, understanding the behavior of investors and the project's community, and checking its viability and liquidity. It's important for you to do this because you're in it to make money, not lose it...
What parameters do you consider before investing in crypto? Tell us in the comments đ đ.
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