When I first got into crypto I saw ‘do your own due diligence’ alot. I knew it meant research the coin but what was I supposed to be looking for. What things did I need to find out to know if a coin was good?
Here is a list of things that I look for right now:
- Look at the coinmarketcap charts, historical data, and what markets are selling it. Historical data I look at all time and see how the price moved. This will also tells me how long the coin has been on the market. If it is on only smaller markets this can be a good thing. When I got in on power ledger it was only on Kucoin. Make sure it is a reputable exchange. Since power ledger was only on Kucoin, the potential for when it would hit bigger exchanges made it a no-brainer that prices would rice.
2. Make sure the coin has a website.
3. What problem is it looking to solve? Is it a problem that even needs to be solved?
4. Is it actually trying to do something useful for many people or only in a niche market?
5. Does it have a working product? This is a big thing. Most coins don’t have a working product and are only ideas.
6. Does the coin have a white paper? Many people will read these entirely through.
7. Do they have a clear vision on what they are trying to do? Are they focusing on just one thing or several?
8. Look at the team behind the coin. You will probably not know any of them. You just want to see if they actually have experience with what they are trying to do. Look at credentials. Check their linkedin account.
9. Check forums, search engines, websites and what others are saying about the coin.
10. Join their telegram or slack channels and watch for activity from the coins team.
11. Check github to see how active they are updating. I like to see weekly updates but if what they are working on takes a long time updates can be a little less often. You don’t want to check and see their last update was a year ago.
12. Do they have any partnerships with other companies?
13. Who or what is their competition?
These are some of the questions I look to answer. Most times not all of them will check out but most of them should. If they don’t really make sure you feel strongly about the coin before investing.
I am always tweaking these questions the more I learn so I would love to hear some of the things you look for.