Every day new crypto projects are launched and people do invest in them, but do you really know which crypto projects you should choose to invest in?
Today, tens of crypto projects are launched daily, some are launched through various platforms, and many are raising funds via private sale or directly from new investors who can spend from $10 to whatever an investor can put in.
Many crypto projects in order to deter whale (big) investors keep a tap on per investor who can purchase tokens, while many others don’t have such rules and regulations.
Many crypto projects do give out details about what their project is about and why the project was launched and what they are going to achieve from this project, in other words, what problem they are solving.
Let’s now understand how to invest early in crypto projects. Or let me say this way, how to identify a project that you can invest in early.
- First of all the user needs to read about the crypto project in which they want to invest in. You can always read the whitepaper of that crypto project.
- Websites like coinmarketcap.com, coingecho.com, watcher.guru, coinmooner.com, pinksale.finance are some of the examples where you can check which crypto projects are launched or going to be launched. Once you identify the project, check the website link.
- You should always check the website of the crypto project. If the website link is not working, avoid that project.
- Check the look and feel of the crypt project. What is the crypto project trying to do? Which real use cases are they providing?
- Is there a good team behind the project? See if they have been given information about themselves. There are many projects, where we don’t get clear details about who is behind them, and avoid those projects.
- Check the total token supply and maximum supply: Because many projects do say about total circulating supply, but leave out maximum token supply. In this scenario, the crypto project can add any number of tokens, so avoid such projects.
- If both the total and maximum supply is given, check how the token is distributed among team members, users, and the development team.
- Check whether the project gives out any details on the team vesting their tokens, if yes, check for the period the tokens will be vested.
- Avoid meme tokens that are built for fun and have no proper use cases. There are thousands of crypto projects based on memes, which are just made for fun, but very few like Dogecoin (DOGE) or Shiba Inu (SHIB).
- If the project has any investors, always cross the information with the investor’s portfolio.
- If a crypto project is invested by venture capital companies or well-known investors, you can take your first move and go ahead with your investment. Always remember, though: even if they have investors’ money, that doesn’t mean that they can give you good returns.
- Always check crypto websites and social media platforms to get community sentiments.
- Many times, you find that prices do fall after the tokens get listed on the exchanges. So once you have decided to invest in a crypto project, try to stagger your investments. For example: If you have $1000, invest $500 during the initial token sale and invest $500 once it is listed on the exchange.
- If the prices fall after exchanges listing, you can buy more tokens and minimize the loss, if the prices are up, you can sell the tokens and you have more money to invest in other tokens.
- Just like you do in researching shares, company bonds or mutual funds of the companies, always do your research before investing in any crypto projects.
- Never go by a word of mouth for investment in any crypto project, because the person might have some vested interest in giving you this information.
- Investing early has its own benefits and risks. If the project is adopted by many, you can make good money, but if it fails to attract more users, you can lose your money too. But, as said, every investment is subject to market risk, which is also written in all the share prospectus you buy from the market.
Some success stories
Shiba Inu (SHIB) and ApeCoin (APE) are the two cryptocurrencies that stand out on the list that have given good returns to early investors in these projects.
Let’s first speak about the SHIB, which has given over 1000X returns to its early investors. The meme token based on a dog that was pegged as a Dogecoin killer gained traction in early 2021 and within a few months, its traded volumes which were under a million in April 2021 at $0.00000005, touch a new high of $0.00008 with trading volume exceeding $35 billion.
Initially, there were 1 quadrillion tokens of SHIB, of which 500 trillion tokens were sent to the Ethereum founder. ETH founder burnt 400 trillion, kept few, and donated the balance to fighting covid, this caused the attention of users and prices skyrocketed providing 1000X return to early adopters. There is around over 589 trillion supply of SHIB tokens of which over 549 trillion tokens are in circulating supply.
Another coin is APE, which was launched in the first quarter of 2022 with a price of $7 per APE token with a daily trading volume of close to $650 million touched a new high in just 45 days touched $26.19 per APE token giving close to 4X return, which is stunning. However, the token has again come to the same level as its launch, but it gives a signal that it can touch a new high.
There is only 1 billion maximum and the total supply of APE of which over 292 million are circulating supply.
Crypto investment is always a high-risk investment. The recent case of Terra (LUNA) is the classic example of how Binance’s investment in LUNA worth $1.6 billion is now valued at just $3000, after the price per LUNA which was trading at $82 on 6 May 2022 is now trading at $0.0001933 on 18 May 2022.
This caused the crypto market to tumble to $1.29 trillion on 18 May 2022 from $1.67 trillion on 6 May 2022. The market even touched $1.15 on 12 May 2022.
Investment in crypto is a quality that very few people have and this quality can be developed by constant research and knowledge about the sector.
As the crypto industry is at the nascent stage, it is the right time to invest and select good projects that are working to bring change in the lives of the common men.