The crypto market is not a game of luck but a game of skill. A lot of people have made generational wealth from it, and you can do that too. So let’s start with the 7 things you should look at before adding them to your portfolio.
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UTILITY
A token without utility is just waiting to fail someday. In the past, 1000s of crypto tokens have appeared, and in the end, they all end up being scams or rug pulls. So always look for the utility of the project and the problem it is trying to solve.
The next thing to do is to check the potential of that industry to get a grasp of its upside potential. Also, take a close look at its competitors and see what it is trying to do differently because clone projects don’t last long. -
TOKENOMICS
A good tokenomics is very important if you want to multiply your wealth. Always look at the MCap and fully diluted MCap to know about the remaining token unlocks. If a token has a very low circulating supply, it’s a bit worrisome.
After looking at the circulating supply, check the inflation rate of that token, and if it’s more than 10%–12%, then it’s a bit cautionary. Also look at the token distribution, as more tokens in the hands of a few could do serious damage to the price if they start selling. -
LISTINGS AND VOLUME
A crypto project that is on a reputable exchange always brings a sense of relaxation. If the project is new, then look out for its volume on DEXes to know whether people are interested in trading the token.
Most of the time, new projects have a lot of fake volumes generated by a few wallets to trap retailers, so check their authenticity too before going all in. Investing some time is better than grieving. -
ROADMAP
A goal without a plan is just a wish, and the same is true for crypto projects. If a crypto project has no roadmap, it simply means they are not serious about their product. Always look at at least a 1-year roadmap of a project before putting your money down.
One more thing to keep in mind is that you shouldn’t just put your money in after looking at an impressive roadmap. Check their credibility first by looking at their previous promises, as some projects are excellent at promising but poor at delivering. -
TEAM
Not every founder is selfless like Satoshi, who will just build something revolutionary and not take advantage of it. Most crypto founders are there to grab your money, so always look at the founder and the team behind a project.
If the project has an anonymous founder, it’s better to leave, as most of the time it will end up being a rug pull. Also, look at the history of the crypto founders to get a good grasp of their knowledge and leadership. If you find anything shady, just leave it. -
COMMUNITY
A crypto project with good tech can fail miserably if it doesn’t have a good and loyal community. A community is needed to support a project in its initial days before it becomes mainstream.
To check that, look at the socials of a crypto project to check their engagement and followers. The bigger the community, the better it will be in the long run. For a king to triumph, he needs soldiers, and the community serves the same purpose. -
PARTNERSHIPS
Crypto integrations and partnerships play a very important role in mass adoption. If a project is integrating with renowned crypto projects and companies, it means that its product has real value.
Keep in mind that oftentimes, a project does integrations by paying money, so always look at the articles about their integrations to know the impact they will have on its token. Most often, fake integrations are done for exit liquidity.