Tips on How to Pick the Right Crypto For You as a Newbie Crypto Enthusiast

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BLOCK6

4 min readMay 24, 2022

If you’re wondering which cryptocurrency to engage in, you should understand that it all comes down to fundamentals.

Choosing a cryptocurrency investment can be simple; you just need to do some preliminary research. Because there are so many newcomers in the crypto world, most people do not fully comprehend the fundamentals of selecting the right crypto projects for them.

They just hear a coin is good, buy it, and cross their fingers that it will ’moon’ soon.

If you’re considering investing in a cryptocurrency, be sure you understand why you’re doing so, otherwise, you’re taking a significant risk!

Here are the 7 basic barometers that help you to choose a good cryptocurrency project.

The Team

One of the most important things to look into is the cryptocurrency’s team. In fact, one of the most critical elements to consider is investigating and evaluating the team behind a cryptocurrency project.

Here are some things to consider:

a. Who is responsible for the cryptocurrency?
b. Do you have faith in their expertise?
c. Are they aspirational?
d. Is their track record of achievement proven?

These are all crucial things to consider when picking which cryptocurrency to invest in, since a team has the ability to lead them to success — or disaster.

The Technology

The underlying technology is crucial to a cryptocurrency’s success. You must comprehend how it will perform in comparison to their competition — and what makes the technology unique. Keep an eye out for the major innovators — cryptocurrencies that will utterly disrupt their respective industries.

The Community

The following of a cryptocurrency is a small part of its success, therefore seek for cryptocurrencies with robust communities and committed followers, since this indicates true interest and belief in the coin.

Look through several subreddits, YouTube channels, Twitter account, Discord channel, and community comments to see what people are saying about your potential investment.

The Whitepaper

Whenever a new cryptocurrency is released, it is usually accompanied by a white paper. This will explain the coin’s purpose, technology, how it operates, and overarching vision.

A white paper is one of the greatest places to assess a coin’s fundamentals, and you should never buy in it until you’ve read their white paper.

It can also reveal information about a cryptocurrency’s professionalism and legitimacy; here are some warning flags to look for:

a. Is the cryptocurrency making unreasonable promises?

b. Is the white paper, in terms of its overarching goals, ambitious?

c. Are there any grammatical errors? This is a huge red flag if there are more than a few! A company that can’t devote the time necessary to perfecting its white paper is probably not serious about its future.

Their Vision

The cryptocurrency’s vision is really important. You want to make sure that this coin will last at least the next 5–10 years, and if they aren’t thinking long term, you should be concerned.

Credibility and Reputation

Is cryptocurrency respected on the internet? Do they have a good track record?

At the end of the day, if they have a negative reputation, you know you shouldn’t spend your money in them — to be successful in this sector, you need high credibility and trust.

So do some research on Google and on crypto groups to see what people are saying about the coin.

Another consideration is that you want to invest in a currency that people are enthusiastic about.

The Roadmap

When picking which cryptocurrency to invest in, look for a coin with a clear roadmap and long-term development ambitions. If you want to be successful in the long run, this is crucial.

Here are some things to keep an eye out for:

a. Clear timelines for the coin’s development. If there is no clear timeline, the development team’s dedication may be lacking.
b. When will they be releasing major updates?
c. When is the limit likely to be achieved if the coin has a finite number of coins in circulation?

Conclusion

Simply go through each of these fundamentals before deciding which cryptocurrency to invest in, and make sure your proposed investment checks all of the boxes.

If crypto ventures are legitimate, they offer a lot of potential for growth. Just be careful not to be swept up in the developer’s hype or false claims; decide for yourself whether this is something you want to invest in based on what you’ve learned so far.

While there are no “safe bets” in the crypto world, this guide will assist you in selecting a smart investment with strong fundamentals.