To make money on investing in new tokens, or at least not to lose money on it, it is important to choose the right promising projects. Well-known representatives of the crypto-industry told how to do this and what to look for. Development team. They must have knowledge, experience and understanding of the market, this is an important criterion. As an example, the project of Pavel Durov, whose team in many ways became the key to the success of the implementation of TON and helped to attract investments. Although the project was closed due to a ban issued by a US court.
White Paper. A promising startup must have detailed documentation. It must clearly describe the problem that the developers are solving, and cannot, for example, consist of only two pages: this is a more voluminous document.
Determine how interesting and promising the underlying idea is.
- Check for MVP – minimal working prototype.
- Check the execution of the roadmap. It is important to understand how the project is progressing, whether deadlines and deadlines are being met.
- Get to know the project community. It is important to study the general information field around the startup and see how branches are maintained in specialized forums.
- Determine the market value of the project. That is, to understand whether the market really needs it and whether it will be useful.
Assess the market segment to which the project belongs. Now projects related to the field of fintech, logistics and cloud solutions are in demand at the start. This is evidenced by the direction of the flow of venture capital investments in 2020. According to him, it is necessary to invest in projects from sectors that are in demand among venture capital and institutional investors. This is the foundation for the medium-term growth of the price of tokens, and not just its local surge after listing on exchanges. The uniqueness of the project and its viability. These parameters also include the liquidity of tokens. In terms of trading volume, the promising coin should be close to the top 50 cryptocurrencies in terms of capitalization.
Top 3 crypto projects:
- Babylon Finance
Babylon Finance is an Ethereum-based protocol that provides income to investors through community funds. Babylon offers a stand-alone protocol whereby investors can find the fund that suits their preferences in terms of risk, time and liquidity. Inside the fund, investors get access to the best investment ideas submitted by other members.
- Boson Protocol
Boson Protocol – Solves the digital-to-physical transition to enable decentralized autonomous trading and a DeFi-based tokenized economy of things.
Clover is Polkadot’s parachain aiming to provide an easy-to-use blockchain infrastructure and create a universal EVM-compatible platform for substrate-based applications.