Eruvande

Investing in crypto is not just about hoping the price will go up. It is a serious process that requires strategic thinking, deep research, and informed decision-making.

Remember, we do not invest in random projects. We place our money into ventures with strong visions and solid foundations. Our goal is not to get rich overnight but to discover real value early and grow together with promising projects.
This guide is created to help you reduce risk and make better investment decisions. Whether you are new to the space or have been in the market for five years, these principles should always stay with you.

Vision and GoalsBefore investing in a cryptocurrency project, the first thing you should do is understand the project's vision. What is the project aiming to achieve, and what problems is it trying to solve? There are thousands of projects in the crypto world, but do they truly bring innovation to the blockchain ecosystem, or are they just riding the hype?
For example, Ethereum Layer 2 projects aim to solve fundamental issues like scalability and decentralization. If you're considering investing in this area, you should not only look into project X but also compare it with competitors like Arbitrum, ZKSync, Optimism, and Polygon. Their technical infrastructure, developer support, user base, and even ecosystem partners can significantly influence your investment decision and potential returns.Team Strength and ConsistencyA strong project needs a strong team behind it. Technical knowledge alone is not enough. A good team should also have a clear vision and the ability to make sound decisions during times of crisis. The past achievements of the team members, the projects they have worked on, and their reputation in the industry can tell you a lot.However, looking at Linkedin profiles alone is not sufficient. Personally, I’ve been saving the first versions of whitepapers for years and comparing them later. Because teams with real vision do not constantly change direction along the way. If a project's roadmap, tokenomics, or use cases are frequently updated within a short time, that usually signals inconsistency and should serve as a red flag for any investor.✅Even if the project seems solid, you should be cautious if the team keeps changing their ideas. Typically, when the direction changes, the whitepaper gets updated as well, and new researchers may fail to notice these changes.That's why it’s essential to check the project’s social media history. Even better, use sites like Web Archive to review older versions of the project’s website. This will help you understand whether the project has shifted direction or deviated from its roadmap. Consistency is key in this field.Liquidity and Market BehaviorLiquidity is a critical factor in cryptocurrency investment. When a token is listed on large CEX platforms like Binance, you typically won't face liquidity issues. These centralized exchanges provide tokens with high trading volume and continuous buying and selling. This makes the likelihood of sudden price changes when buying tokens quite low. Since there are more buyers and sellers, liquidity issues do not occur, and transactions are more stable.
However, DEX platforms present a different scenario. Liquidity on DEX platforms is generally lower, which means price slippage can occur when buying and selling. Especially for tokens with low trading volumes, large purchases or sales can dramatically affect the price. In such cases, investors may face risks like sudden price increases or decreases.
Before investing, if you plan to trade on DEX platforms, you must check the liquidity and trading volume of the token. Making large trades in tokens with low liquidity can lead to unwanted price movements and negatively impact your investment. Therefore, it is crucial to consider liquidity when trading on DEX platforms to minimize risks.✅ Another important point to be cautious of when investing on DEX platforms is the risk of scams such as rug pulls and honey pots. A rug pull is a scam where the project's team quickly sells the token and withdraws liquidity. This results in investors being unable to find sufficient liquidity to trade, and the token's value rapidly drops to zero. If the project is developed by an anonymous team, if there is disproportionate token distribution, and if there is no token lock-up, it's important to be cautious and avoid such projects.A honey pot is a trap designed to lure investors in. Investors can buy the token but cannot sell it. These types of projects often deceive investors with attractive offers or high return promises. To identify honey pot scams, you should check the token's sellability and the smart contract code. If the token cannot be sold or if transfer transactions are constantly blocked, this is an indication of a honey pot.Tokenomics: The Foundation of Your InvestmentTokenomics forms the foundation of a project's economic structure. It not only defines the supply and demand dynamics of a token but also influences the project's long-term sustainability and potential. Before investing, it is critical to pay attention to the tokenomics. The total supply of a token, how it is distributed, and how that distribution evolves over time directly impact the value of your investment.Specifically, if 30-40% of the token’s supply is allocated to early investors and the unlocking period occurs quickly, this can create significant risk. In such cases, large investors may sell off their holdings (dump), leading to a price drop. Additionally, factors like token liquidity, staking mechanisms, and deflationary features should also be considered. These elements not only make a project more appealing but also shape the future value of the token.✅ Are VC-backed projects always safe? The community often assumes so. However, the reality is not that simple. Let’s break it down with an example:Example: Gunz ProjectGunz has completed a total of 7 investment rounds: 2020 – Only Gamegroove Capital (Tier 5 VC) – 25M 2022 – 10 different VCs, a mix of Tier 1-5 – 46M 2024 – 4 different VCs, Tier 2-3 – 30M 2024 – Delphi Ventures (Tier 1) – 6M 2024 – VanEck (Tier 1) – Investment undisclosed 2024 – Coinbase Ventures (Tier 1) – Investment undisclosed 2025 – 1KX VC (Tier 2) – Investment undisclosedNormally, a project that has received 107M USDT in disclosed investment would definitely be on everyone's radar, and everyone would want to invest in it. So, where’s the problem?The first problem is that the project received its first investment in 2020, because no GameFi product should take 5 years to build. The project should have been launched much earlier.The second problem is that in the first round, they sold a huge amount (worth 25M) of tokens to a Tier 5 VC.The third problem is that nearly every VC participated in the token sale, making it seem like the team constantly needed money for the development of the project.
There are many more issues here, but what happened in the end? Gunz dropped 50% from its opening price. Of course, it did, because the selling pressure from VCs, plus sales from Binance and Gate Launchpool, and potentially from an airdrop, would have been too much for the market to handle. The price of such projects is usually best to be bought after it drops. Remember, nothing goes up or down forever.
Community: A Key Driver of SuccessThe strength of a project’s community can be the deciding factor in its long-term success or failure. In the world of cryptocurrency, it’s not just about the technology behind the project, but also the people who believe in it. A passionate and engaged community can create demand, generate organic growth, and offer valuable feedback for improvements.A project with an active community will often see high levels of engagement across social media platforms, forums, and Telegram/Discord groups. Regular discussions, updates, and community events help keep people involved and interested. Moreover, a project with a loyal community can weather market volatility much better, as members are less likely to panic-sell during price dips.The level of trust within the community is also a reflection of the project's integrity. Projects that foster transparency, open communication, and trust with their community tend to have more loyal supporters who are willing to stick with them during tough times.✅ The power of the community can be demonstrated with the example of Pi Network. Despite not building anything tangible, Pi Network went through a remarkable listing process thanks to the strength of its community.Conclusion:In conclusion, when investing in a cryptocurrency project, there are several crucial factors to consider. First, the project's vision and goals, the strength and consistency of the team, and its tokenomics, which determines the economic structure, are essential elements for ensuring long-term sustainability. Each of these factors can directly impact your investment decision. Additionally, technical aspects like liquidity play a key role in determining how solid the project’s foundation is and the potential risks that investors may face. Factors like decentralization, VC investments, and community support should not be overlooked as they also significantly affect the success of a project.The community is one of the most important factors that can enhance a project's sustainability and chances of success. As demonstrated by the Pi Network example, a project can gain significant attention and success due to the power of its community, even without a fully developed product. Therefore, investors should not only focus on the project itself but also observe the strength of its community and how it contributes to the project's development.Lastly, remember that the first thing you encounter when considering a project is its website. The quality, transparency, and professionalism of the website can be an indication of how serious the team is. Using pre-made templates can often signal a lack of professionalism and may indicate potential risks, such as fraud. By carefully evaluating these factors, you can make more informed and secure investment decisions.Considering all these aspects, adopting a strategic, knowledge-based approach when selecting the projects to invest in will significantly increase your chances of success.