Whenever you consider investing into a new crypto project, use this decision tree to find out if you should

Cryptocurrency News and Public Mining Pools

Whenever you consider investing into a new crypto project, use this decision tree to find out if you should

Let this guide act as a brief decision tree whenever you’re considering to buy into a new project, not financial advice.

1. Consider the value proposition.

  • What is this token bringing to the table?
  • Is it quick to transact?
  • Does it solve a problem?
  • Does is improve a system?
  • Is it a quality of life improvement?
  • Does it have a mission statement?
  • Is it secure?

If the answer is yes to all or any of the questions above we can move down the second branch of our decision tree.

2. Consider the tone of voice

  • Is the website talking about how it will moon?
  • Is it trying to create too much hype?
  • Is the hype based on little else than a mooning promise?
  • Does it make a reference to memes?
  • Is the tone of voice a bit TOO informal?

If you answered yes to any of these questions you may stop here. This is not a project you want to invest in. Otherwise, we can continue down the 3rd branch.

3. Consider its blockchain

  • Does it have its own blockchain?
  • Does it make sense for it to be hosted on the ETH/BSC blockchain?

Again, if either answers are yes you may continue.

4. Consider its user acquisition strategy

  • Does it sound too much like a Ponzi scheme?
  • Is it invitation-based?

Answer yes here and you may stop looking into it any further.

5. Consider its supply and blockchain architecture.

  • Is the supply centralised?
  • Does it make sense for the supply to be centralised given its blockchain architecture? (like XRP for example)
  • Has it been pre-mined and if so who owns the majority of it?

While this might directly disqualify a token by itself, paired with the points above it offers a pretty clear picture on where we stand. And now for the final question:

6. Do you believe in their cause?

If their mission doesn’t speak to you, why would you invest in it?

submitted by /u/CyberPunkMetalHead
[link] [comments]