Crypto Value Assessment: How Good is Your Crypto Project? A blog to asses the true value of a cryptocurrency which readers can use as a basis for investing.
As a rule of thumb, I will not invest more than 10% of my net worth into crypto, and that is with crypto taking up most of my investment time.
In this post I will share the process I use when assessing whether a crypto project is worth investing in or not.
I try to look at multiple dimensions, and for each dimension I try to assign a score out of 5. Then I do some sort of weighted average to get a total score out of 5 on how good the crypto project actually is.
If you are interested in what goes into assessing the quality of a crypto project, keep reading!
Crypto Value Assessment: How Good is Your Crypto Project?
A blog to asses the true value of a cryptocurrency which readers can use as a basis for investing.
The crypto market has been growing at an unprecedented rate with new cryptocurrencies being launched regularly, and in this article, I will look at what makes a good investment.
Let’s take Bitcoin for example; this was the first cryptocurrency ever to be developed and is still the largest by market cap today. Bitcoin was created in 2008 by an anonymous developer known as Satoshi Nakamoto who released a whitepaper detailing how Bitcoin works and how it would provide solutions to major issues associated with traditional fiat currencies. The whitepaper outlined how Bitcoin would offer faster cheap transactions and be able to be used globally, rather than having to convert into different fiat currencies every time you cross borders or even pay merchants abroad. It also proposed that the coin would be decentralized meaning an individual or government could not control the system and cause inflation or instability.
Bitcoin was created in response to the central banking system, which caused the 2008 financial crash and this is seen as one of the main reasons people have flocked to it, because of its decentralized nature and scarcity. If you believe Bitcoin will continue to grow then this is a good
The emergence of cryptocurrency has been one of the biggest stories in finance over the past two years. The value of Bitcoin, the first and most popular cryptocurrency has risen to around $9000 (at the time of writing) from around $1000 at the beginning of 2017. Other popular cryptocurrencies such as Ethereum, Litecoin, Ripple and Dash have also seen their values rise over the past year, with Ethereum rising from around $5 per coin at the beginning of 2017 to around $800 per coin today.
With this growth in cryptocurrencies there is a growing number of crypto projects on the market. Over 1300 crypto projects are listed on CoinMarketCap at the time of writing. However, not all crypto projects are created equal. Some crypto projects may be products that are very unlikely to succeed, while others may be very innovative and have good potential for growth.
Therefore it is important for people considering investing in any crypto project to assess its true value before investing in it. This blog will provide a framework that readers can use to asses how good their chosen crypto project is and thus make an informed decision about whether or not to invest.
There is a ton of hype in the cryptocurrency industry. So much so, that it’s often difficult to determine the true value of a project.
In this article I’ll show you how to assess the true value of a coin. If you’re an investor in cryptocurrencies, this will be invaluable information.
But before we get into that, let’s talk about what is actually driving the price of cryptocurrency right now: Hype.
Hype is Real
It’s real, and it’s powerful. This can be seen in the price action of basically every coin out there. When a coin launches, they have a marketing push behind them – typically via social media channels like Reddit and Twitter. This gets people excited and they buy the coin. They advance to the moon!
What happens after that? Well, nothing good lately… The price drops dramatically and gets stuck in the mud for years on end.
So why does this happen? Why does hype drive up prices, only to see them crash down later? It all has to do with expectations and timing. When people get excited about a new project and invest in it, they are usually expecting something from it quickly (as in within months). And when
The first step in assessing a cryptocurrency is to ask “what problem is it solving?” If a crypto project doesn’t have a clear, useful, and needed product or service, then its value is most likely very low.
Just because a project has an actual use case doesn’t mean that it will become popular and successful. Does the project have a community? Does it have good PR? Is there a solid marketing strategy behind it?
These are all questions you should be asking yourself before investing into any crypto. A lot of the time, when looking at tokens or coins you will see the term “scam” used. This is usually just a scare tactic used by people who do not understand the true worth of the coin.
The worth of any coin is based on what it solves and the market demand for that solution. That makes crypto projects that solve real problems that people want solved much more valuable than those that don’t.
When you are interested in cryptocurrency and you want to invest in it but don’t know which one is the best, then there are several factors to consider. You can look at https://www.cryptonewsz.com/bitcoin-price-analysis-btc-must-hold-around-5100-for-bullish-bounce/11366/.
The first factor that you need to look at is the popularity of the cryptocurrency you want to invest in. Make sure that you invest in something that will be popular for a long time because if it gets old fast, then you might not be able to hold on to it for a long time and make profits from it.
Another thing that you should look at is the value of the cryptocurrency itself. If the value is really high, then there will be no point in buying it unless you have a lot of money with you. But if the value of the coin is low and it is just starting out, then you will be able to get more coins for your money which means that your investment will pay off better later on when its value rises.
Since the start of the year, over $1.5 billion has been poured into ICOs. The market has exploded with new projects that all have unique ideas, concepts and ambitions.
But with this massive growth of available ICOs, how can you be sure whether or not the one you’re investing in is worth your time and money?
To help with this, we’ve compiled a list of 5 essential questions that can help you determine the true value of an ICO.