Want to invest in Bitcoin or any of the other cryptocurrency but do not know where to start?
Well, Crypto is a large space and thousands of coins have come out over the years that do various things, just look at CoinMarketCap. Some that have no reason to exist and some that have a purpose. Blockchain Technology is the technological railroad tracks that all these coins run on and taking advantage of the technologies utility is what you want to look for. I will personally tell you a few of the factors I look for when examining a coin in this article and I hope it helps get you started on your way down the crypto rabbit hole.
What problem does this coin solve?
Let’s take a coin like ATMOS and ask ourselves why? Why the fuck does this exist? What is its purpose? Well at first it was hard to understand the white site (whitepaper alternative). Then after reading all the drafts, I understood that it is a tool that allows for data to be found on the IPFS or any other system you connect it to. The Query system is fully anon and distributed and that alone gives it an A+. I know that finding stuff on IPFS is hard to do (I have operated many IPFS Nodes for fun in the past) and this will be very useful once Filecoin and IPFS become more mainstream.
Some other examples of coins solving problems:
Komodo – Decentralized Exchange and Decentralized ICO platform.
Monero – Fully Anon and eventually lower transaction fees
Burst – Smart Contract, Hard Drive Mining (Very efficient mining)
Mysterium – VPN Privacy
Do they have a community?
How big of a following do they have and where is it? Well, we will use SIA coin for this example as they are on Discord and have thousands of followers. Very popular coin, at times you may find a telegram… I am not a fan of telegram but some coins do well on it. Other coins use different types of community applications such as Slack, Ryver, IRC, etc. Some just have a forum. So the end of the story, if they have a huge community it is a huge plus and if you see no community then… you may remain flaccid for a long time.
How long have they been around and do they have a Dev Team with active development?
One thing that allows me to invest in confidence is knowing that the coin has a genius developer behind it aside from just a team. You can listen to youtube videos or SoundCloud interviews with them to understand the people they are. Also, you can check the development of the projects here https://cryptomiso.com
Feel free to message the Developer and test him, ask them questions, I have done this with the list below and you can do the same for other coins. If they respond with good answers then once again… A+
Vericoin -Doug Pike
Komodo – JL777, Grewal Satinder, CA333, Peanut Butter and others.
ATMOS – Asphyxia
How does the website look and what does the traffic look like?
Coming from an SEO background I understand traffic and why it exists. So another factor would be checking https://www.alexa.com/siteinfo and seeing if they are getting any traffic, all in all, this will tell you if others are interested as well. A website is hard to examine but if you know how to do it, check the code and make sure it’s not a copypasta site.
You can also use tools like Buzzsumo and HootSuite, to monitor and check social media and other publications on the coin. These tools are expensive so it is best to maybe share the expense with a friend so you can both utilize it.
Do they have a budget for things like marketing?
Many coins will have some type of pre-mine for this or percentage that they keep for development costs and other things like marketing. Good Press Releases are not cheap and good help is hard to find at any price. So when I see a coin holding 15% of the coin or less it is understandable but anything over this is a red flag in my eyes.
At the end of the day, these are just a few factors to consider when investing in coins that I personally look for. Use the above as a research tool because this is not investment advice. My name is LooTz and I have done over 100 interviews in this space over the last 4 years. You can find my interviews here https://soundcloud.com/coremediaradio
I am very active in the space and a very active miner and pool operator on top of many other projects in the works that Core will bring this year.
Stay tuned for Part 2…