How to Determine a Great Crypto Project

You’re looking to invest in cryptocurrency projects, but you don’t know where to start. There are a lot of cryptocurrency projects out there with varying levels of success and legitimacy. It can be difficult to tell which ones will actually take off and which ones will fail. This blog post is here to help! We’ll go over how you spot great cryptocurrency projects so that your investment won’t fall flat on its face.

What is a cryptocurrency project

A cryptocurrency project is a decentralized software application that utilizes cryptography to secure transactions. Crypto projects can be built on top of the Bitcoin blockchain, or they can utilize their own open-source code and cryptocurrency tokens.

Ways crypto funds are raised

There are two main ways that crypto projects raise funds: Initial Coin Offerings (ICOs) or Crowdfunding. ICOs are when new cryptocurrency tokens are created and sold with incentives for investors in order to fund an upcoming cryptocurrency project.

As this method is unregulated by any government entity, it has attracted its fair share of criticism as there have been incidents where these fundraisers were scams designed solely to generate money from unsuspecting investors who believed in what was being proposed through the use of crowdfunding campaigns. This type of fundraising event usually takes place on cryptocurrency forums, such as Bitcointalk.

As for Crowdfunding, this is when a cryptocurrency project’s developers seek out an established cryptocurrency like Bitcoin to create and sell digital coins or tokens with incentives in order to build the platform that their cryptocurrency will be used for. This type of fundraising event typically takes place through platforms like Kickstarter or Indiegogo.

Spotting good crypto projects

A good way to spot great crypto projects is by taking a look at what they’re building and how much they’ve raised so far: If you see any red flags (like close deadlines), it might not just be because there are delays — sometimes scams try to make deadlines appear more realistic in order to get people caught up in them too easily. However if everything looks good, then you can start looking at cryptocurrency forums and other sources to see how much the cryptocurrency project has been talked about.

Here are a few checks to perform when trying to recognize a good project:

Does the token actually relate to the company’s operation and design? Does it have any real utility other than speculative use?

Evaluate how blockchain is compatible with the product. If it does benefit, see if there are already competitors doing something similar or a competing currency that could be adopted instead of creating a new one. Bear in mind that just because there is “token” on the end of their project’s name does not make it a worthwhile endeavour.

Final Thoughts

If it looks like a cryptocurrency project is legitimate with plenty of support, then go ahead and invest! You’ll be happy with your decision when that cryptocurrency takes off in value — Bitcoin originally started out as just $0.01 per token before quickly multiplying its market cap to become worth billions of dollars (USD).

It’s safe to say that crypto projects have high potential for growth if they’re legit. Just make sure not to get too caught up in all the hype or false claims made by developers — evaluate on your own whether or not this is something you want to invest in based on what you’ve learned so far.

Please follow our social media accounts for updates:

Facebook: https://www.facebook.com/Defiescrow

Instagram: https://www.instagram.com/defiescrow/

Twitter: https://twitter.com/DefiescrowDefix

LinkedIn: https://www.linkedin.com/company/defixsolutions

Reddit: https://reddit.com/user/DeFiEscrow/

Website: www.defix.solutions

Telegram Main Group: https://t.me/joinchat/PN5PoRJHRikwNjll

--

--

--

DEFIESCROW is an open-source P2P protocol that wants to build a decentralized trading platform that is secured by escrow.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Rubber, Meet Road: Lessons from Kommerce’s First Commodities Trade

Stablecoins Explained: A Guide to Cryptocurrencies

Updates for Space Rat Polygon!!

The journey behind InsureDAO

The Risk Of Adopting Too Early

Psychedelic Sloths

Building the back-office infrastructure for the next generation of businesses

Overheating: Cutie NFT And Item Market Overview

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
DEFIESCROW DEFIX

DEFIESCROW DEFIX

DEFIESCROW is an open-source P2P protocol that wants to build a decentralized trading platform that is secured by escrow.

More from Medium

Daily Technical Analysis BTC & ETH — 14th Jan 2022

KuCoin Crypto Trading Bot

Simple Guide to Cryptocurrency Arbitrage

Cryptocurrency Technical Analysis: Chart Types & Introduction to Charting