Investing in crypto is one of the most profitable investments you can make. The fast-paced growth of the crypto space, in particular, has made it a breeding ground for innovative projects which are planning on disrupting the norms of various industries. Nonetheless, the explosion of crypto investors also fuels the exponential increase in scams and weak projects that are not going to survive the test of time.
As a result, an investor must analyze and verify the viability of projects before allocating his or her funds to it. This guide contains some of the ways you can identify viable crypto investments which promise good returns.
The Sentiment Of The Crypto Community
The crypto community is a tightly knitted group of crypto enthusiasts that constantly share their insights and sentiments on the various developments creeping into the market. Therefore, the sentiment of the crypto community plays a major role in the viability of a project. Development teams that have successfully pitched their ideas and initiatives to the community have a better chance of surviving the test of time.
Hence, it is advisable that you consider the sentiment of the community when analyzing the viability of a coin. You can access this information on online crypto forums.
Roadmaps are illustrations that project development phases that will shape the success of the coin. Usually, roadmaps come with timelines and the progress of a project is based on the ability of the development team to achieve each projected development or upgrade within its allotted time frame. Projects that do not have official roadmaps are either shady or their development teams are less concerned about the success of the project. As such, you can identify the viability of the project by analyzing its progress based on an already existing roadmap.
Walk The Talk
It is easy to get carried away with all the talks going on in the crypto space. Understand that a majority of projects at the ICO stage do not have a working product and they mostly present their ideas on paper. Although this is the norm, the availability of a template, prototype, or working product even at the ICO stage shows that the project is not a cooked up story. Teams that have any of this must have done a bit of research on the issues they are targeting and the project is not fabricated jargons that look impressive on paper.
Room For Growth
The crypto space is still in its infancy and there is still room for a lot of developments. Projects that are not considering this will most definitely falter as they struggle to keep up with the growth of the industry. Projects that cannot guarantee that they will remain relevant in the market are not in the category of long-term viable projects. The longevity of a coin/token depends on the ability of the development team to incorporate new innovative features that will compete with other high flying coins. Once a project has reached its development peak, then its value nosedives.
The relationship between the development team and potential investors is critical when identifying viable investments. Members of the development team show their commitment by responding to every query and inquiry relating to their product. Therefore, they put up links and social media accounts of every member on their official address. If you find out that any of these accounts or addresses are fake, then the project is probably a scam.
Also, development teams that are detached from the crypto community or are slow in responding to inquiries are not 100% committed to the success of the project.
There are over 2000 cryptocurrencies in the market vying for our attention and this number will increase with time. One of the most efficient ways you can ascertain the viability of coins involves the in-depth analysis of its utility. The utility deals with the real-life use case of the coin. What are the purposes of the coin and which problem is it planning on tackling? These are the questions you should ask and the answers you get, determine the viability of the coin. Coins which cannot justify their existence are particularly not good investments.
Also, it is important that you identify the industry the coins or token is targeting. Some industries are not known for being receptive to new technologies and this could hamper the growth and adoption of the coin. In many cases, the use case of a coin determines the timeframe of its viability-short-term or long-term.
Investing in quality crypto projects guarantees you huge profits, however, you will only stumble upon these investments when you diligently seek them. The analytical strategies listed above are some of the ways you can sieve through the thousands of investment options in the market and pick out the gems. You can also amplify the success of your investment decisions by signing up for our live trading signal which will help you negate emotions.