How I assess a cryptocurrency before investing in it.
With the recent increase in the number of cryptocurrencies available. It is usually very difficult to decide on which coin to invest in.
I have a litmus test which every coin I am about to invest in passes through :
Following are some of the questions I try answering before selecting a cryptocurrency to invest into:
☑️ Is the network governed in a Decentralized or Centralized manner?
☑️ Is the project offering an Innovative Technology that solves a major problem or creates a new opportunity?
☑️ Has the project developed a prototype or is under active test?
☑️ Has the project got a solid team of visionary founders who has proven track record of past innovations and delivery of solutions?
☑️ How does the future roadmap of a project look like? Does it have a clear development timeline showing team's commitment to the project?
☑️ How scalable the network is with growing use adoption?
☑️ Is it a ponzi or a pyramid scheme or scam?
☑️ What is the global market capitalization of a currency?
☑️ Is the token supply capped? If so, a large portion should be available for sale and not owned by a few individuals.
☑️ Where is this asset available to trade globally? How many exchanges support this?
☑️ Does the token have any utility to incentivize participants to trade or invest into?
☑️ Are there any prominent figures behind a project lending some credibility and/or funding the project?