Topic: Advice on what to consider when making an investment ? - page 2. (Read 330 times)

Yes, that's why I've said about real users.

I think we have an idea to figure out if those conversations are too obvious and they're fake conversations just to attract investors. It's common for those projects that are coming out in the market daily.

They're looking for their PR team to do the thing and hire people just to make their channels very active. But, it's better if you'll investigate first to see if those interactions are for real.

Had a few pieces of advice that pretty much will apply to any investment in the crypto space:

1. Look at the initial distribution.

Was there a huge premine that goes to some sort of centralized foundation? That shouldn't be a dealbreaker, but if the foundation is not doing anything with the funds and just holding onto billions of dollars of tokens, then that becomes an issue.

2. Look at community engagement. Has there been active discussion on Reddit/Discord?

3. Look at the devs/team. Are they known previously? Are they anonymous? Not any one of these metrics should be used to be the deciding factor, but too many negatives would ring alarm bells for me.

First you should analyze the project team and its features. Because this is a very important factor. New ones are added to the crypto money market every day. Most of these additions are in pursuit of defrauding people because they are after making short-term money. If you do not see any problems in the project team, then check their social media accounts. Because social media is the most important element for a project and team to do business. Because the more active social media is, the more people it can reach. The most important point is that you do not invest according to the opinions of others. Otherwise, you may lose your assets. Always do your own analysis.

hugeblack pretty much summed up all the things you need, OP.
To add up to the "Developer Team" part, check their Github repositories or at least activity in the past months. You don't need to know how to code to check that in Github as you can check the project being developed there. It is open for anybody. Check also their LinkedIn pages, which are commonly noted on their past employment history though don't rely in it too much as it can be faked out sometimes.

Out of those things, I would say famous people are the least important part. I get that because of Elon Musk many people think that viral marketing is possible via other famous people but we had so many celebs going out of their way to promote projects all the time and it ended up not being that great.

This is enough proof that celebs promoting a project is not enough at all, it is something that you should not rely on while you are investing. Aside from that, fundamentals, roadmap, code, media coverage, community, and so forth are all great parts of it and I definitely agree that you should check them out before you make an investment.

Crypto investments are not an easy undertaking especially if you going for coins off the top 100 or generally those not listed on coin marketcap or coingecko... But the basics of giving it a litmus test still stands, you can check their socials and see if they are organically active and not just some bots interacting with people, secondly check if coin has been listed on a reputable exchange as others scam exit with phony exchanges which is a big red flag. And lastly check for authenticity of white paper and team and once or these are all good you can pick your project.

Advice on what to consider when making an investment?
My advice, there are many things to consider when choosing a trading platform for crypto assets, including;
In choosing an exchange, the thing that must be considered is security. Check if the exchange offers two-factor authentication (2FA) security which is standard security.
Then choose an exchange with a payment method that suits your needs.
Furthermore, checking the details about fees is an important factor to look at if you want to choose a platform for buying and selling Bitcoin.
And also before you invest in a cryptocurrency, check the historical price of the coin and analyze whether it is in an up or down trend.
good luck

Therefore, before going further to invest having basic knowledge is the main thing. In so many ways nowadays there is no need to worry anymore as long as the OP is a loyal reader and applies it to the project he wants. Selling in a panic, not only beginners but sometimes we are also often exposed to issues that always make us decide to sell. Plus investing in projects that initially went well but along the way their team encountered many problems which eventually hampered the project. So the best decision is not to hold their coins too long.

The important factors that you need to consider before investing is really few but unfortunately these days devs are too smart hence they will easily convince you to go investing with them. So, the better option for you must be, avoiding new projects but investing into bitcoin and major coins like BNB and ETH. This way, you may save your time and more importantly you will easily get good profits. Now decide, how many more videos that you need to watch.

There cannot be any definite answer for this because coins with different approaches have succeeded hence these cannot help you to filter out.

I hope that OP is still following this thread and have some glimpse.

I am afraid that he made a step without learning about crypto and much more without listening to the people around him. As to learn investment is not all about money and how much we are able to get but it was more important to know or have the knowledge of what we are doing. Or else, we expect losses as the opposite results from what we aim for.

I suggest to OP to have more time in the forum for the sake of gaining some ideas and lastly, to be aware of the situation. As nothing will happen to us if we just neglect all of these things.

Having enough knowledge about crypto investment including its risks, the coin that you're investing with, and the team behind it as well as your target goal are some of the things that you have to consider before investing. It could be a long process of learning but being knowledgeable about what you're doing is always an advantage. You must be emotionally prepared to face the risks of investing because the market flow is like a roller coaster ride.

Very good question for anyone who looking for investment in a project. If you look at cryptocurrency history first thing you have to be patient without this you can't get big profits. Other thing project should be legit project or have large usecase project, if project became a scam then you will not get a penny. Community should be good because in today's world everything goes on hype if community is big then your investment can go big. Legit project with big community and holding power will make you a big investor.

When looking for an investment opportunity, I would focus on the following things: media coverage, community, finances, famous people or companies behind the project. 5 years ago I would've said that you should look at their whitepaper, but now I think it's a waste of time. It might be an unpopular opinion, but I believe that the concepts don't matter if there's no way the team will actually succeed in implementing them, and projects that are very similar but have lots of funding can become successful even if they're not original.
So skip the whitepaper, and start with their social media. How many followers do they have, compared to numbers of followers of some projects that became very successful? How many likes and other engagements are available? This stuff can be bought, but if they have the money and willingness to invest in marketing, it's a good sign.
Then look at the media coverage. Have any famous news outlets written about them? Again, you can choose a successful project and compare with its coverage at the time when it was a new one.
Another very important thing is the team. Is there anyone famous there, and what are they famous for? Keep in mind that ICOs might lie about their team members, so make sure to fact-check if a certain person indeed has anything to do with some project.
As for the financial part, I wouldn't trust the mere numbers on their official website or media profiles, as those can be fake. What counts, instead, is any big companies or famous investors giving money to this project.

Collection of comprehensive guides on identify and avoid scam projects

That will help you identify all the red flags that a project can have especially on its initial stage of ICO/IDO and the likes. There is also an interesting post on reddit that discusses the technicalities of finding a gem on a sea of shitcoins.

On a related note, are there any profits to be made from investing in ICOs? As far as I can tell, whitelisting and investing in NFT projects appears to be a replacement for ICOs in which, instead of purchasing their token, you are purchasing a jpg that claims to have a real usecase that generates their value.

Telegram interactions can be engineered these days, you must be cautious too. Dubious projects can recruit multiple users to push conversation on their channels, Interactions on telegram and discord channels are indications of good projects but not full assurance. If you feel that you may be biased in your research and decision, that is unsure of your judgement after researching, employ the help of a third party professional whose judgement is sound to help in your decision making process.

You must put your attention to the fundamental of project. To be honest TA doesn't matter a lot when the project didn't have a fundamental. The top coins have very good fundamental and that was making them all worth billions valuation right now. We can learn a lot from there if the project with a good fundamental can sustain for long term unlike the project that being used as a way to make fast money from the market. This project will be alive only for short term. You can use this as a key to determine which project is worth to invest during the bearish trend right now.
i can't deny the fact that if any coin can be profitable once the bearish trend will end and recovery will happen.

Usually check each of their social media platforms if they've got a lot of users, the real users with interaction. Like in their telegram channel or discord server.

You'll eventually get to see if the interactions are for real and they're really answering questions that should be brought as communication is very important while they're starting out.

As for the token distribution, it's always that the devs have part of it. Look if the cut they have is justifiable and the utility of that token is also important.

There is no clear cut way to find out what are the projects will become successful in future because future is unpredictable so all you can do is to pick the best out of the available with the futuristic vision. But for me all the new projects are scam no matter they are coming with new ideas, new technology, better and faster, etc...

1. Look into the project utility, this is what will determine its adoption and also it's future

2. Make sure the teams are real and not anonymous, this days we don't need teams to be anonymous unless the project is a privacy coin like Monero

3. Invest only what you can afford to lose because even good projects have unfortunate turn outs, things can go wrong so no project is 100% guaranteed

I always try to go social media first because that's where people share their knowledge after research. You will find economists, mathematicians, and a lot of different type of people sharing their opinion about the project they are trying to invest with.
This is the fastest way but if you really want to go deep then you can go ask them yourself using platforms like Telegram or Discord where support are lively to encourage investors to buy their tokens. After that, it's up to you if you think they are telling you the truth or not. Because there is no way you could tell a project will be 100 percent successful. That's the risk in this industry.