Like the title says, how would you decide to invest in a coin or not especially a new one with a low cap marketcap. What information about crypto should you know before you look into these new / low cap coins too? And what would you look into these coins to know they are good to invest in.
Any guidance is appreciated.
My crypto positions are not very substantial, to be honest. Generally, I have no problem playing in this space, and I am comfortable with the risks involved in these markets. However, I am aware of the fact that new cryptocurrencies are created every single day, and these coins have no reputation whatsoever.
Since I have seen so many huge "pump and dump" events in these markets, I am much more cautious in this space, especially with very low-cap coins. Every time I am introduced to a new coin, I spend some time reading about the coin and searching around about the team behind the coin. Who does it belong to? What does it stand for? What is their background?
If I like the project and the idea behind it , I will usually do some further research into the team to get an idea of how legit and stable the project is. I've found it's often really helpful to read some of their social media accounts on Facebook, Twitter and LinkedIn. The fakes are usually very easily spotted. Also, I think whitepaper is very important for any new project, if developers do not write a whitepaper explaining the concept and fundamentals behind the coin then I usually skip it.