In this article, I’ll explain to you how to invest in cryptocurrency safely by staying away from scam projects. Read the crypto investment guide 2024 and save your hard-earned money.
Being a blockchain consultant I have been actively working with multiple cryptocurrency projects around the world and I have seen multiple scam projects fooling new crypto investors easily. Henceforth I wanted to write this article in detail so that you can save $ by following this guide. This crypto investment guide has been written with standards as per 2024.
The Goal : Verify authenticity of the project and potential in market
Checklist for how to invest in cryptocurrency –
- Check the project website
Check if the project has a proper decent website. Website development costs a bit of money and at least as a step 1 good projects will have it. Check if they have an SSL certificate installed on the website. i.e, the site loads through HTTPS secure.
2. Read the whitepaper or Light paper of the project
The whitepaper is the core documentation of the crypto project. A good white paper will have pieces of information like what problem or value they bring in, team information, tokenomics information (Usage of Funds), Roadmap of the project (Future scope of what they are building). Verify these and see if they are satisfactory.
Additionally, Try understanding the scope of the project and if it has potential in the market before investing so that you are safer in the long run. It is recommended to Consult with a Blockchain Consultant before investing to understand the project and verify.
3. Verify the Team members
If you find the team member’s information on the project website or whitepaper straightaway verify them on Linkedin which is a professional social platform. You can also reach out to the project owners in the project’s telegram or discord to discuss with them. Also, see their background, and if they have any previous successful project history. Surprisingly most projects fail in this step.
4. Check the Advisors & Partnerships of the project
A good cryptocurrency project will generally have a list of quality well-known advisors in the blockchain/crypto industry. These quality advisors will only be involved in quality projects. Hence a good crypto token project will have good advisors helping them out. Also check the partnerships which the project has with other companies in the industry. This increases the reputation as well.
5. Verify the Community Engagement of the Project
Check if the token project is active across social mediums like X (Twitter), Telegram, Discord etc. Also, see if the project is responding to the investor’s questions across these channels.
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6. Smart Contract Audit
Smart Contract Auditing is a process of verifying if the token or dapp smart contract has any vulnerabilities and if it is safe for transactions. Note – Make sure the audit of the smart contract is done by leading Smart Contract Audit companies like Certik, CypherShield, Hacken etc. This is a technical verification before investing.
7. Verify Tokenomics & Token Distribution
Check the tokenomics of the project if the distribution is even and not in favour of the project. If the token owner has a large % on hand, eventually there are high chances for the token project to sell off the tokens (It’s called Rug Pool) and scam the investors.
8. Roadmap
Check if the token project has a good roadmap for development and marketing activities. This is much required for the token price to increase in future. A project with strong roadmap has good future.
9. Regulatory Compliance
Most token projects are non-regulated. But if you come across a registered crypto project, then this increases the trustability of the project.
10. Hire Blockchain Consultant
Lastly, Hire a Blockchain consultant to understand the project in detail. The blockchain consultant will verify all of the above steps for you and also see the technical stuff behind the project i.e, verify github codes of the token project. This assures you 100% safeness of your investment. Get in touch with me on chat OR email to [email protected] if you are looking to consult with a Blockchain Consultant.
I hope by following this How to invest in Cryptocurrency Guide 2024 you can make safer investments. Cryptocurrencies are risky investments and trade with caution.
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