As cryptocurrencies are going through a difficult spring of 2022, it is imperative to focus on the future and the next bull market cycle.
In hopes of reaching height during the bull run, some investors prefer new crypto projects or low-cap tokens. Indeed, these tokens could potentially experience spectacular gains, reaching the famous x50 or x100 so much hoped for by those arriving in the digital asset sector.
For this, even if there is no magic formula for guessing what will be the next Solana, the next Fantom, the next Bitcoin or the Next Matic, certain factors have to be considered.
- Monitoring investment funds: is this a guarantee of success?
- New technology and a competent team; successful crypto project?
- The essence of a crypto project: its usefulness
- An active community, an important plus
Monitoring investment funds: is this a guarantee of success?
Sometimes we act foolish trust some youtubers or others on the networkx social , assuring us that this or that token will be a success for our portfolio with an imminent bullish breakout.
Wouldn’t it be wiser to track the movements of mutual funds? With decades of experience in the field to make and continue this type of investment, they have undoubtedly made many decisive decisions in the past. The financing these investment funds provide when developing and launching new projects is undoubtedly an important guide in choosing our low-cap cryptocurrency.
To find out which project is invested by each investment fund, and the importance of the latter, there are several ways to proceed. Although a project’s web page generally lists the largest partners, the ones it trusts, it is possible to: more information about the same partners who support the project.
Particularly on cypher hunter it is possible to discover all investors as well as an incalculable amount of relevant details about a project.
Take the example of MINA, a list of 20-30 investors is supported; There are influential groups in the crypto space such as FTX Ventures, Coinbase Ventures and Fenbushi Capital. In general, these funds act with reflection and intelligence, given the sums of money sometimes invested.
Still, to prioritize these funds according to their importance and track only the investments of the largest funds, other pages seem relevant, especially the most recent of them.
Also, if you want to focus on projects already available in the market and not future projects, it is valuable to have a detailed list of projects in “whatchlist” or the full portfolio of major funds such as Pantera Capital Investments or Binance Labs to have, thanks to CoinMarketCap and messari†
Even if investment funds are not foolproof, they can still be a good barometer to guide us in a world made up of several thousand crypto assets.
New technology and a competent team; successful crypto project?
When concentrating on a project, we must not forget the basics. Endure, it’s vital to have technology support, more than just a marketing hype or short-lived social media success† While these elements are inextricably linked to success, they can both testify to only short-lived success.
In order to have as much luck as possible on your side and be as well prepared as possible for the market, it is important to analyze the composition of the project team.
When it comes to our own investment, it’s best to take it seriously, and analyze team developers, CEO, marketing team members and other relevant members† When analyzing their career paths and major achievements, their influence, their place in their field and their connectivity must also be taken into account.
Interactions with team members with their community, in particular through the main communication channels (Telegram, Discord or Twitter), the quality of the exchanges and especially the way updates are brought to the community. It is also important to assess the availability of team members, their transparency or the expertise they demonstrate in external contact.
Likewise, it is important to compare the technology used by the project with the expertise this team has in working with this technology, as mentioned in an earlier article by Be[In]cryptography.
Several of these methods are mentioned by name by Anglo-Saxon youtuber Suppoman through his YouTube channel and his courses offered on Udemy. This is a crypto bounty hunter with x100 potential, and with lots of prey hanging from his hunting board.
The essence of a crypto project: its usefulness
If we mention the fundamentals that are focused on the team, it is also necessary to focus more on the project and its usefulness. Its relevance can be assessed in several ways.
It is unlikely that a project will be evaluated without measuring its utility and the context in which it takes place. That is, we must see which problem can be solved thanks to this new project and whether it yields a relevant solution.
It is also mandatory to measure the salience of this problem; the more difficult it is to solve, and the more important this problem is if it is not solved, the more relevant our project becomes. Possibly, in the context of comparing yourself with the competition, another possibility is to see whether other projects are already looking for solutions and which solutions they are.
Finally, since cryptocurrencies are working like a fad, it is preferable that our project is part of this fashion, but not in the final stage, if not in the pre-euphoric phase.
The essence of the project lies in other elements that are no less important, such as: the white paper and the roadmaptwo essential elements that everyone should be aware of when approaching their investment and research.
- While the white paper indicates the seriousness of the team, we think there is mainly the explanation of the project and essential information.
- Of the road mapwe see the ambition of the team, and the relevance of progress in one or two years, detailed by quarters.
But still, the whitepaper usually contains the information related to: the number of tokens that will be in circulation in the future† This information is also very important because the amount of tokens will give us an idea of the potential price in the near or distant future.
Indeed, depending on the market cap and the amount of tokens in circulation, we can calculate the exact price for a given cap. If the number of tokens is too high, it will take a very large cap before the same tokens reach a significant price. This information should be taken into account more when entering a project along the way and not at the start.
Also, tokenomics, or tokenomics, is a key element, because it will tell us the expected distribution in time of the tokens and thus makes it possible to assess for how many months this benefit is intended, and which periods correspond to new benefits.
An active community, an important plus
In addition to the marketing aspect undertaken by the team to develop and distribute its project, the role of the community is also very important.
Contacts between investors and the team generally take place through chat channels like Telegram or Discordor members of crypto projects are always there to answer the many questions of the community.
The larger the community (thousands of people) on the communication channels, the greater the potential of the project.†
This means that many of the members are potential investors who will participate in the rise in the price of the cryptocurrency in question, but also facilitate the “publicity”† Investors themselves serve to disseminate a project by talking about it on social networks, communicating in such a way as to attract more investors. It could also lead to recurring discussions on Reddit and Twitter, two of the most widely used social networks by cryptocurrency enthusiasts, to to create infamous hype.
All of his information represents only a meager portion related to an investment, however, may guide more than one during his initial trades.
The most fundamental secret, however, remains that of do your own research focus on other important parts of the investment. such as the sales stage, which can also be recommended by many indicators, even if in the end the market is still king.
Finally, never forget the adage: never invest more than you can afford to lose.
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