In recent years, the cryptocurrency market has witnessed a new wave of ICOs fueled by the hype around decentralized finance (DeFi). While some coins like Polkastarter surged in value, others plummeted, emphasizing the importance of choosing promising
projects to invest in.
- Development team. They should have knowledge, experience, and understanding of the market, which is an important criterion.
- White Paper. When choosing projects, it is recommended to study the "White Paper." A promising startup must have detailed documentation that clearly describes the problem developers solve.
- Project team's history. It is important to study the project team's past and who stands behind them.
- Idea. Determine how interesting and promising the underlying idea is.
- Check for MVP. This applies to the minimum viable product.
- Check the roadmap execution. It is important to understand how the project development work is progressing, whether deadlines are met.
- Get to know the project's community. It is important to study the general information field around the startup and see how threads are conducted on specialized forums.
- Determine the project's market value. That is, to understand if it is genuinely needed in the market and if it will bring benefits.
The uniqueness and viability of a project are extremely important for its success. Token liquidity is also a crucial factor. A promising coin should have trading volume similar to those in the top 50 by market capitalization. It's best to buy tokens before they are added to exchanges and their price increases. After listing, earning from investing in new coins becomes more difficult.