The cryptocurrency world is only about 12 years old. Everything started with Bitcoin, and it was released back in 2009. Bitcoin made so many millionaires and billionaires. Bitcoin is not the only cryptocurrency out there now. Ethereum(ETH), Binance coin(BNB), and new crypto projects like Cardano(ADA) are also popular now. People have made billions of dollars from these coins. Do you think that you can’t be a cryptocurrency millionaire again? Don’t lose hope; you still can be.
There are about 9000 cryptocurrencies, and many are still coming. This article will educate you about things you need to understand before investing hard-earned money into new crypto projects because most of them won’t be here for the next bitcoin halving.
Name and Team
Any new Cryptocurrency needs a name and a good team behind it. At least the founder should be doxxed because that is a massive factor in a token’s success. Otherwise, there will be so much FUD around the coin, and people will start to dump. A catchy name is also needed for success. For example, Bitcoin, Ethereum naming is on point. Many people are still speculative about cryptocurrency. Having a solid reputation and a team will give confidence to the investors.
Vision and Mission
Many cryptocurrency projects are now handling by companies. These companies should have a vision and a mission to attract new investors. Most of the time, crypto investors better understand the crypto by looking at its company or developers. For example, a New Project like Raptor Finance has a great mission. Its mission is,
Our mission is to heal planet earth and stop climate change by allowing our holders to stake their tokens to generate yield for themselves and ecological projects.
Many scam coins or pump and dump coins don’t have a clear vision or a mission, so Vision and Mission is the 2nd important thing before investing in low-cap new projects.
Anyone that has a piece of sound knowledge in cryptocurrency and coding can create new crypto projects. But why you need to create one is the bigger question. But many new crypto projects don’t have a clear use case. Bitcoin was created to become the first-ever decentralized financial system globally. With time, It has grown and become the treasury asset for billion-dollar companies like Microstrategy and Tesla. Ethereum is the Web 3.0 because it’s a platform that anyone can build Decentralized Apps(DApps). There are many good projects like VeChain, Zilliqa, and Raptor Finance. You can still multiply your investment with these coins.
Vision and Mission are good but having a plan with exact times is suitable for new crypto projects because investors are interested in the time frame. Having a solid roadmap will attract many investors to the project. Being more specific about dates and every little detail is better. So when you invest, look at good projects with a great roadmap.
Market Cap and Hype
Do you know how the price of crypto is generated? It is developed by Dividing the market cap into the total coin supply. So if you want to 1000X your money, bitcoin will not help you because it’s already at a 1 trillion dollar market cap. If your investment to be 1000X market cap should be at 1000 trillion dollars. It will never happen. But new coins with 5-100M can 1000X easily.
We all know the Dogecoin, which is Elon’s favorite. It went up because of the hype, and its market cap is now over 60 billion. No fundamentals matter because of the hype. The hype has two different sides. First, people can lose or gain so much money, and People miss out on good projects.
Long Term Potential
We have seen so many pumps and dumps and rug pull in the last few years. But new investors will quickly be a target of these scams. So you need to see if these new crypto projects can sustain the “Crypto Winter” where all the momentum and money are not in the market. If they have a plan for that, it is a good sign. Raptor Finance is one of the coins that have long-term potential because it wants to build the Raptor Swap and donate a set percentage of the transaction fee to charity to prevent climate change in the world.
Finding new crypto projects to invest in early is a complicated task. You need to consider many things before investing your hard-earned money. There are six main things that you need to know about the project before investing. Those are,
- Name and Team
- Vision and Mission
- Use Cases
- Road Map
- Market Cap and Hype
- Long Term Potential
Learn more about the project by joining its telegram group or social media channels.