Crypto Investment Guide

A little guide/few arguments to remember to find promising (low and mid cap) investment projects between the huge amount of projects in the crypto space, out of my head:

1. The market cap

Market Cap = amount of coins * price of 1 coin.

Bitcoin has the highest market cap. How high is the market cap of the project you are interested in? How many coins are in circulation? If the market cap is low there is more room to grow. Closely connected to point 2. Vesting and tokenomics

1. Vesting schedule and tokenomics

Determines the inflation of a coin. A good vesting schedule is slowly and steady. Ruptures and immediate releases of coins, lead to a flood of supply and decrease the price. This increases selling pressure.

Does the team own the major amount of the coin and it isn't locked up or vested over a long period of time? Bad sign.

1. Buying pressure

Is the coin a utility coin? If yes, this increases demand and therefore the buying pressure. Best example: ETH. It powers the whole Dapps and the defi space on the ethereum blockchain. Are there burning events? Nice, lowers supply Is there a buyback program? Nice, lowers circulating supply Is there staking program? Nice, lowers circulating supply

1. Marketing

Does a coin even exist if nobody knows about it? A project will only grow if it has publicity. Check their twitter, subreddit, medium posts and partnerships!

4.1

Partnerships are important! Connected projects are externally proved if you want so. Is the project backed by infamous investors or institutions? Yes? That's a good sign.

1. The team

Talking about publicity. Mostly a public team which can be look up is more trustworthy than anonymous teams. You can check their backgrounds and see where they come from. But this point depends on the case. Thorchain for example has an anonymous team, but has a reliable framework which makes it trustworthy.

1. The use case

Which problem does your coin solve? It's a coin with high transaction per second and decentralized technology, respecting the privacy and powered by PoW? Wow, sounds good. But already exists.

Look for game changer, projects that are a novelty. Projects that solve real world issues or issues of the blockchain technology. You will get better in realizing this, the longer you stay in the game

Edit: you can filter coins by topic on coinmarketcap. There you can look for shopping, defi, privacy, oracle etc. And see if your project has competitors.

1. Time your investment

I know it's tempting to jump on the train if a coin pumps. But sometimes you have to sit back and swallow your greed. Especially a coin with a low market cap which pumps, comes down faster than you think. It's better to wait few weeks and invest when the prices cools down. Trust me. After pump comes dump. Especially if a YouTuber promoted a coin recently.

Yeah that's all what comes to my mind right now. Let's see how the formation comes out on my smartphone. Stay safe. YOIO - you only invest once. Better do your research and don't rely only on echo chambers which only feed your bias. Different sources and perspectives are the key. Therefore you can be safe to not having the urge to jump out of the project, when the market goes south, because you know the real value of the coin.