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How We Evaluate A Project


With over 1,165 cryptocurrencies to invest in, and even more ICOs that are coming out, as an investor it becomes difficult to pick a good viable project that has the potential to double my return on investment. However, I have found a way to do just that. This method has helped me 5x my investment on a project I jumped in early on. I went from dumping $1,500 in its ICO stage to cashing out only half the profits north of $5,000 when it hit the exchange. This is merely just one positive investment that I’ve made, not counting all the other positive returns in my portfolio.

Before deciding to invest in a coin, this is what I look for in the project:

TEAM

Looking at the team helps me understand the brains behind the project, the mentality, the intention, and finally the credibility of the project. I observe if the team members are active on their social media platforms, are they promoting their project at expositions and presentations? This shows that they truly believe in their project and that they are serious about getting the word out there and moving it forward.

This point is not directly linked to team, but I also look if there is an active community supporting this project. What is the community saying and how committed are they? Using Ethereum as an example, there is countless Facebook groups, twitter influencers and social media presences that is purely created by the community of ETH enthusiasts. It is the TEAM that is responsible for getting the ball rolling for the community.

MARKET

A good indication whether a coin has potential or not is which markets/exchanges it is listed on or plans to be listed on. Typically speaking, when a coin is listed on numerous exchanges it tends to increase in value. The cryptocurrency market is worldwide so being on exchanges that the Americas, Europeans, Asian and all other continents use would be a great indicator of potential growth in price.

PARTNERSHIPS

Perhaps my favorite thing to look at are partnerships or features. What are partners saying about them? Where are they featured on if any? A good example of this would be UTRUST or Ripple. UTRUST recently successfully funded their ICO. They have been featured on numerous news articles such as on Forbes, YAHOO Finance, and Huffington Post just to name a few. Ripple on the other hand is an already established coin that is working with well-known names such as MoneyGram, American Express, UBS, and many others.

TECHNOLOGY

One of the many under rated factors behind deciding whether a coin has room to grow is the technology behind it, or the disruption it brings to the table. What is the project aiming to do? Is there a coin that does that already and if so, what makes this project unique? Is there potential for the technology to grow (scalability)? Can there still be need for it in five years? These are some of the questions I ask when looking at the technology of a coin. Using Ethereum as an example again, you can answer those questions clearly right off the bat when you understand smart contracts and what the Ethereum platform intends to do.

ROADMAP

Knowing where the project is going and how they are going to get there gives you a glimpse of the practicality, ambition, and infrastructure of the project. With a roadmap you can see where the project is supposed to be going and how it will get there, where it should be in two-three months down the line, and perhaps even how the team intends to tackle some hurdles along the way. A clear and precise roadmap lays out a game plan which can be referred to by investors to see if there are any exciting developments planned, big events and/or announcements, and any significant updates to the technology.

Keeping in mind that investing is a risky business, I make sure I do proper research and evaluations before making the final commitment of dumping money into a project in the hopes that it will return tenfold. There are a lot of projects out there that may seem legit, but as soon as the ICO is over or they have received appropriate funding from investors who did not take the time to really investigate the project, they will simply vanish with your money.

As I personally fell victim to such projects before, my goal is to help others not do the same mistake that I did as it comes with a financial loss and perhaps maybe a bit of dignity. Put in the time and research before spending your hard-earned money.

SOURCES TO LOOK AT WHEN RESEARCHING

Check the official website of the project to make sure some time was put into it.

Go through their social media platforms like Facebook, twitter, Instagram and see how active they are.

Most projects have a hub where you can directly talk to the team behind the project. Many use Slack, Telegram, or Discord.

Check out the vibe of the community and what they are saying generally through Reddit, Bitcoin Talk threads, and Medium or Steem blogs.

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