Cryptocurrency has widely known across the globe in the early 2021 thank you massive involvements of many big investors, such as Tesla, JP Morgan, Microstrategy, and so on. Because in the Crypto space, there are thousands of projects in its existence that can’t be remembered. To avoid scamming and getting fear of missing out (FOMO) that potentially lose all your life-saving investment, you need to do your own research (DYOR).
In this article, we will reveal 4 untold facts to determine the best Crypto project. It is important that each project will potentially give you x100 of your initial investment if understand it clearly. You may wonder how can I know which project has potentials? Well! We already combined the best practice to analyze the best crypto project below.
Market – The Very First Step to Look for
You can clearly see that every Crypto coin in the market has its own market capitalization, circulating supply, and max supply. What can all of these tell you? The market capitalization will tell you how a crypto asset is worth in the current market. It is simply calculated by taking the current price of the crypto asset divided by its circulating supply. Meanwhile, the number of coins that are circulating in the current market is called circulating supply. By knowing the circulating supply of each coin, you will know how the crypto asset is going to be worth in the future as well. Lastly, the max supply is the maximum number of coins that will be able to use in the lifetime of the crypto asset.
Before buying any coin, you must know who holds the most percent of your coin you are going to invest. The reason is that every time the Crypto whale moves, it is going to cause the price manipulation. Therefore, you know and predict how much the price is going to manipulate if whales sell off.
Before investing in any crypto asset, you must know the history of that crypto market. It is very normal that the crypto market will always be volatile. However, you need to zoom out the chart to see its history. Therefore, you will know when is the right time to invest, when is the right time to take profit, and how much profit you are going to take. If you are just a beginner, you should learn the technical analysis to trade Crypto.
Remember that the history will tell you where you are at in the crypto history timeframe.
Like the business plan, the Blockchain white paper is an official document of Cryptocurrency that discuss everything about the project.
To begin with, when you look at the white paper, you need to identify how the project design is able to solve problems as well as to offer most use cases in the blockchain network.
Then, you can look further into the architecture because it will tell you the general overview, consensus roles, forking, governance roles, rewards, transaction fees, and network mitigation of that crypto asset. All combined will give you a clearer look at how the project is structured and worked within the blockchain network.
Despite the technical part, you must also know the number. You have to know how the crypto project allocates its tokens, in other words, how tokenization is structured and allocated. By knowing the tokenization process of the crypto asset, it enables you to predict how this coin is going to be worth in the following years.
Every crypto asset is established to lower the transaction fees. It is one way to attract more people coming into the project.
Following up with your crypto community will allow you to keep track on the roadmap of the project well. To be able to know if the project is moving, there will be updated news, interactive activities in the community and so forth. And you can also follow Blockzeit: Read The Latest Cryptocurrency News Today!
For example, one project is going to launch the testnet or the mainnet at a certain date. If the project is working well, it will be launched as dated without any delays. This can be a good sign that the project team is really working and pushing the project forward day by day.
You can simply follow the community on the official website, twitter, telegram, and other possible social media platforms.
Now let’s do a real practice! Take look at Dogecoin as an example! If you look into the history, Dogecoin was established in 2013 in the purpose of fun and friendly internet currency as stated in Dogecoin website. This meme coin has an unclear total supply of 100 billion coins and additional 5 billion coins in its circulating supply every year. By our analysis above, you can calculate and see how Dogecoin will be worth in price compared to its total supply on the market.