How do you know if a Cryptocurrency is Viable? There are hundreds of cryptocurrencies in the market, and it’s hard to know which ones will stand the test of time and prove to be viable.
If you wish to invest in cryptocurrency, it is important to do your due diligence on the given coin. One of the most overlooked methods of doing this is checking for a coin’s viability.
It may be hard to figure out which coins are viable at first, but there are some things that you can look for.
There are some coins that may seem like they have a lot of potentials, but they’re really just copies of already existing cryptocurrency models.
But there are some telltale signs that will help you determine if a cryptocurrency is really worth your money or not.
How to know if a Cryptocurrency is Viable?
Coin viability can be established by focusing on a number of factors including:
1. The coin’s actual use case.
While some coins do not have an actual use case (which shows they may be more of a speculative investment), others do.
Cryptocurrency use cases are best understood by seeing them in action. This is why many of the most successful use cases are still centralized platforms that have incorporated cryptocurrency payments.
Most Token use case is to make it easier for customers to buy products and services, but far from that, many tokens have gone beyond aiding transactions.
A lot of times when people create a token, they think about the technology behind it. Technology is important, no doubt, but it’s not the most important thing. The most important thing is how it will be used by the customer.
To examine the viability of a token, it is important you examine the use case of the token.
Examine the white paper for the token, it contains the team’s goals for the project as well as the token’s use cases.
As a result, you’ll be able to tell if your objectives are realistic, double-check that they weren’t plucked from the pages of another project’s white paper.
This has happened many times, some token creators lift the white paper of an existing token, you need to be sure of what you are dealing with.
What problem is the token trying to solve?
What does it offer the crypto-ecosystem?
How relevant is the use case?
Dogecoin for instance used as a tipping service, which is one of its most popular applications.
Users will tip other users for postings or efforts they consider are deserving of praise. It’s akin to a “like,” but more powerful.
The greater the use cases of a coin, the more in-demand the coin could potentially become with time.
2. The Development plan
Cryptocurrencies have the potential to solve many of the problems that plague our modern society.
But, how can we get there? To get to that point, it will take an entire ecosystem, or crypto development plan.
Every new cryptocurrency project should have a solid development plan to keep it going.
This involves planning for everything from the type of software, it will use to build its product to the hiring process, compensation strategy, and many more.
Studying a token’s development plan can prove helpful in determining how viable a token will be.
You can research the development plan of a particular cryptocurrency by checking out their official website.
The plans are usually detailed in the roadmap section, along with detailed information about each component, and why it’s important for the cryptocurrency to succeed.
3. The core team
The crypto world has been rising to fame at a tremendous rate and it is no surprise that many people want to invest in them.
However, for one to be able to invest in cryptocurrency, it is crucial for one to understand the team behind a particular cryptocurrency.
The team behind a cryptocurrency will help an individual make informed decisions as they can check out what a particular person or a group of people have been doing in the past and if they are capable of delivering on their promises.
The team consists of individuals who coded the currency, created the blockchain, and hold the currency – they play a vital role in the stability and success of the currency.
Before investing in a cryptocurrency, make sure you find out as much as you can about the team behind the currency.
What is the track record of the team members?
What have they done before?
Are they capable of delivering on their promise?
You need to have as many facts as possible. Someone who has got NO track record on any crypto-related project is unlikely to deliver on a promise no matter how juicy the project promise may be.
You should understand how these people work together, what kind of experience they have, and where they come from.
This will help you to know if a Cryptocurrency is Viable or it’s just another pump and dump coin.
4. Examine the project social presence
Investing in cryptocurrencies is a very exciting prospect. The idea behind these coins is that they are decentralized, and as such cannot be controlled by governments or banks.
That’s a really appealing concept for a lot of people, but the reality is that even though the currency itself might be decentralized, the community surrounding it isn’t always.
One of the most important factors in successfully investing in cryptocurrency is understanding the social presence of a particular cryptocurrency.
For example, if the social presence is light or non-existent, then that is a good indication that they are not worth investing in.
If you are looking to invest in cryptocurrency and wish to know if a Cryptocurrency is Viable, it is imperative that you understand the social presence of a particular cryptocurrency before you do.
5. Examine if the token is solving a critical problem
Understanding market opportunities is critical in most business endeavors, but especially so in the cryptocurrency space.
When it comes to making money in cryptocurrency, you have to understand the unique opportunity of each currency.
The best way to do this is to find out if there are any problems that cryptocurrency is solving.
If you can figure out how a currency solves a problem, you can use that information to predict its future price.
This will help you identify which currencies are good investments and which ones aren’t worth your time.
If you’ve ever wondered if a cryptocurrency is more than just a pump and dump token. Or you want to know if a Cryptocurrency is Viable, there’s a very simple way to find out.
All you need to do is ask yourself one question: Can you explain what the token is supposed to do? If yes, then that means that the token solves a problem.
And if it solves a problem, that means that the token has value and is more than just a pump and dump.
Any Blockchain project that solves a major problem in a unique way will see an increase in demand, enhancing the trading value of their token.
6. Examine the user community
With the popularity of cryptocurrencies skyrocketing, many people are looking for ways to get in on the action.
However, not everyone is familiar with how to pick a cryptocurrency that will make their investment worthwhile.
The best thing you can do to ensure that your investment will be successful is to research the community of users that are supporting that specific cryptocurrency.
If you want to know if a Cryptocurrency is Viable, Before investing in such cryptocurrency, you must know its community.
The community is extremely important when it comes to cryptocurrencies because knowing the community will help you understand if the currency will be around for a long time.
Wrapping up how to know if a Cryptocurrency is Viable
In the growing competitive world of cryptocurrencies, it is important to know how to vet a cryptocurrency before investing in it.
If you want to know if a Cryptocurrency is Viable before you invest.
Understanding whether or not a cryptocurrency is viable requires looking at several factors.
You will need to consider the project target (what problem is the coin trying to solve),
There are some coins that may seem like they have a lot of potentials. But they’re really just copies of already existing cryptocurrency models.
Examine the development of its technology, and how it compares to similar cryptocurrencies in terms of price and use cases.
You can also examine what they are offering in the cryptocurrency space.
Other components of a cryptocurrency that you should keep in mind in vetting the viability of a coin include
The strengths and weaknesses of the team.
The market for its currency.
What metrics are being used to determine growth potential
Hey, it’s important to be logical and factual in your research to avoid being swayed by what a coin’s promotional team is saying.
If you are interested in learning more about different cryptocurrencies on the market today. Be sure to check out our website often for even more info!