Cryptocurrency projects: do you know how to analyze them?

In a such competitive world, where no parachutes are available for our investments (especially with cryptocurrency), the best weapon to defend our funds is surely the knowledge about the cryptocurrency projects we are going to finance.

Coinmarketcap

It is crucial to know the principal information to gather about a project:

A good starting point is the analysis of the available scenario through the website coinmarketcap. The page provides various data about several listed coins, such as their price, available supply, trade volume over last 24 hours or market capitalization. The website updates statistics every 5 minutes. Clicking on the link you are automatically redirected to the crypto currency’s official website.

Once that a project is selected, the first question to answer regards the quality of the idea at its base. We should ask ourselves:

• what is the mission of the project?
• does it solve an existing or future problem?
• is the idea applicable?

Cryprocurrency whitepaper

If the answers sound reasonable, then we can proceed examining the whitepaper of crypto currency . A document which states all the useful information, including technological data and. If this is satisfying we can move further evaluating the road map.

It is important that the road map includes a plan for at least 18 months and that the project aligns with the previous milestones.

Importance of team collaboration

Subsequently, one the most crucial element is the team, both developers and marketing members. Investigate their profile on different social and professional platforms (e.g. Facebook, Instagram, LinkedIn) from which you can get information about their background. For a deeper research you can also check for any feedback from peers on dedicated forums like Bitcointalk, Reddit, Youtube or even Google search, to notice details or information escaped from the previous analysis.

Final recommendations

If all the information collected convinced us, we probably found a good project to invest in.

However, I want to clarify that a project for which is hard to gather data often does not represents a good investment!!

You can find all the information you need about cryptocurrencies on our site.