Note: This blog is part 4 of a 4-part series.
Our newly launched ebook “How to Find the Best Cryptocurrency to Invest In ” explores three categories of cryptocurrency fundamentals - coin utility or purpose, economic and technological foundation, company and community - and provides you with some sub categories by which you can assess the potential value of a cryptocoin or blockchain. Here’s the fourth excerpt from the eBook that is available for (free) download over here.
As a first step to evaluating the strength of the company and community behind the project, it is important to research the individuals in leadership and advisory positions. Take a look at the founders, company management, developers, investors and the community behind the project. Warning signs that the project might be a scam include the absence of a team and source code that is unavailable.
Assess the Team Leadership's Strength:
Assess the Advisory Board’s Strength
While we have seen scenarios where coins lacking any utility have amassed tremendous followings (e.g. Dogecoin), even a coin with great utility stands to struggle to gain adoption if it lacks community support.
Assess Brand Awareness:
While the full list of coins in a Bitstocks’ investment portfolio remains a trade secret, our CEO Michael Hudson has publicly declared our commitment to investing according to the fundamentals instead of market hype and speculation.
We play the long game: we do our research on the viability of a coin early on, then hold on through the turbulence of the cryptocurrency market. Follow our example and you will be able to HODL with confidence too.
Remember: One of the golden rules for cryptocurrency investment is to stick to an amount that reflects your comprehension of the market and the underlying technologies, and no more than you can afford to lose. If you are uncertain, it would be wise to contract cryptocurrency market advice.