How To Identify A Good Crypto Project - Part 02
I am very happy that a lot of people found my previous post very useful and I got plenty of comments on that post. I highlighted some steps that will help you to choose a good crypto project to invest in and I was overwhelmed by the response, so I thought of adding a few more factors that will be handy in this case.
Kindly note that even if you follow all these steps and a particular project passes all the tests, there is still no guarantee that a project is legit. That is the risk associated with crypto. But if you follow these steps, chances of you being scammed reduce drastically.
Source
So, without further ado, let's look at some more factors to determine whether a project is legit or not:
Roadmap
If you look at some of the top quality crypto projects that are still under development, they have a roadmap on their website. If you are investing in a project at the start, there must be a roadmap on their website. Now, you have to check whether they are completing tasks on time o not. This can help you to find whether the team is actually building a product or just raising money to scam people.
Community
Having a large dedicated community always works in favor of a project and a community can actually help the project to get the recognition it deserves. You might be aware of Chainlink marines, the people that are spreading the word about famous crypto ChainLink. You can look into the project's slack channel or telegram to interact with the community. Having a good active community is a big plus.
Website
A decent and well-maintained website is the first thing that investors look into. With DeFi taking over, many new projects that come out are selling their products in the name of DeFi, and in most cases, they have an unfinished or bad looking website that has been created in a hurry. While it is not necessary to have a top-notch website but still there should look good enough.
Code
This might be a little tough thing to do if you have no knowledge of reading code but you can ask someone to look into this factor. A project must be hosting code on GitHub or Gitlab. You need to check if they are consistently updating and adding info. Also, if the project isn't open-source, I would suggest you stay away from it.
This is not financial advice. These are personal thoughts and they are meant for information purposes only.DYOR before investing.
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Hi @syedumair
Very nice post to understand how we can analyze if a crypto project is good to go for. Roadmap and community can be helpful but code etc is not easy for everyone to check as everyone is not so techy.
I would like to those people behind the project is also important and its needed to do a through research on them as well. Thanks
That was covered in part 01. I have also left a link at the top of the post.
So many projects are coming up on the crypto currency space of recent and we have to read about the best way to identify those good project to avoid loosing our funds.
Absolutely. That's why I wrote these two posts.
I think checking team members details is also very important along with roadmap and whitepaper. We have to check the team member's linkedin profiles and it's timeline history so we can understand that those profiles are genuine or not. Such a wonderful content.
Well, that was covered in part 01.
It is very good the clarification that makes at the beginning that even following many steps we could get swindled or lose our money somehow, because the Internet allows it. A page disappears or a project is concluded without notice. And already, really the global economy can give many benefits but lends itself to these traps, many times.
Very good the contributions you have given through these two publications @syedumair
Thank you for sharing them.
I think we are still in early stages when it comes to crypto and with time investors will get buyback guarantees if a project fails but that might take some time.
With that said, every investment whether it is crypto or stocks or something else, comes with a risk and no one can guarantee profit. This is how investing works.
You've actually nailed the point and I must say these are indeed the great features to always watch out for when considering good crypto project. I think you actually forgot to add a very important feature known as whitepaper, I think you might have actually added this in the first part though.
Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead
💖❤️💕💖❤️💕💖❤️💕💖
Yeah, whitepaper is the one main factors that should be read thoroughly. That was covered in part 01.
Thank you for your good wishes :)
After reading this post, i remember the days ICO where a thing and a project "crestonium" passed all the steps above but the project was a failure. A lot of people said it was a fraud, others said it was regulation or bad business strategy. Even an organized scam will have every of the above listed guides and i really love the Disclaimer note.
That's why I dedicated 2nd paragraph for this information only. Even if a project passes all the quality checks, it still comes with a risk.
Thank you for dropping by :)
I prefer to community based. Crypto projects should have at least three community based users, traders, developers. Those three basic communities will help cryptocurrency grow.
Good point.
And each of them brings equal value to a project.
Good crypto projects are difficult to come by these days since people are taking advantage of the blockchain system to hide their identity and then cheat others, these basics must be learnt in order not to fall into the trap of these wrong projects.