3 fundamental indicators for altcoin

zasad@

legendary

Activity: 1974

Merit: 4715

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You are missing criteria regarding technology applicability in reality and not investing in last season's tokens.

I gave my main criteria. The applicability of the project is very important, but if there are thousands of full-time and part-time developers working in the ecosystem, then what are they doing there?

I was asked to give an example of the mass adoption of cryptocurrencies. I can name only 1 example from Tether and Circle companies, whose stablecoins are actively used in many countries and allow you to bypass restrictions.

Quote from: MAAManda on August 25, 2023, 02:56:27 AM

Quote from: zasad@ on August 24, 2023, 08:59:00 AM

2. Total Value Locked(TVL). This is a very important parameter and cannot be faked.

I hope you have read this news last year. TVL is something that is closely related to DeFi, so what if the project doesn't have DeFi in its ecosystem like the previous coins (Litecoin, Dash, Monero etc.).

For now, in looking at the fundamentals of a project, I still use observations regarding communities, developments and ecosystems, that has helped me so far.

For such projects, TVL does not apply, but this parameter can be replaced by trading volumes on exchanges, which most likely need to be divided by 4 or 5, and the number of partnerships.

DapanasFruit

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Activity: 1218

Merit: 49

Binance #Smart World Global Token

These three parameters are a good guide especially for newbies like me so we could never be victimized by projects that will turn out to be scams later. However, we should note that sometimes even the best observers can also be deceived by unscrupulous - and really talented - fraudsters. Investing in a new coin or token can be a hit and miss thing...so whenever they moon take some profits and enjoy your gains.

MAAManda

hero member

Activity: 1694

Merit: 787

Quote from: zasad@ on August 24, 2023, 08:59:00 AM

2. Total Value Locked(TVL). This is a very important parameter and cannot be faked.

I hope you have read this news last year. TVL is something that is closely related to DeFi, so what if the project doesn't have DeFi in its ecosystem like the previous coins (Litecoin, Dash, Monero etc.).

For now, in looking at the fundamentals of a project, I still use observations regarding communities, developments and ecosystems, that has helped me so far.

www.Gambler.Casino

newbie

Activity: 210

Merit: 0

Another important factor is the capitalization of all coins at the start. A bad sign if the value of all coins is several billion dollars. Noo not always! For example, such a large project as ARB cannot be called a small capitalization

zasad@

legendary

Activity: 1974

Merit: 4715

Here, beginners often ask for opinions about different coins. Everyone wants to get rich quick but most often they lose their investments.

If you do not want to lose your investment, I will give you 3 important criteria for evaluating altcoins.

1. This is the number of full time developers in crypto projects
If solana is a scam, then what are so many developers doing in this project?
https://solana.com/news/measuring-developer-and-user-activity-on-solana-december-2022

2. Total Value Locked(TVL). This is a very important parameter and cannot be faked.

3. Number of famous people on twitter who follow the project.
I think that these people will not follow the scam.

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The number of users, the number of transactions, the number of tweets and other useless statistics are not for smart investors.
Of course, there may be high-risk assets in the portfolio, but if there are more than 10% of them, then this is degen trading.
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I hope these 3 parameters will save you from financial losses

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