Ray Odi Ray is an astute crypto writer that loves penning content on cryptos, DeFi and other blockchain-based platforms.

How To Research Altcoins: 8 Crucial Steps

3 min read

a magnifier researching coins on a tablet

When a crypto enthusiast is looking for altcoins to invest in or trade, it is wrong to jump into any project without researching the development or value that they add to the blockchain realm.
The crypto market is filled with thousands of altcoins with different projects and features. It is advisable to research different aspects of the project before incorporating them into your investment portfolio, in order not to waste your money. Potential investors in altcoins should look at features like the team behind, social media, community, technical analysis, future of the project, its thought process, supply of the altcoin, market cap, fundamentals, revolutionary technology that it offers, the last stint of the team, GitHub, chart, a solution that it offers in the crypto market, marketing number and much more. Intense research has to be carried out before an investment is made in altcoins.

Also read: How Does a Cryptocurrency Value Increase? 4 Major Reasons

Solid Features To Look Out Before Buying Into An Altcoin:

Whitepaper

A whitepaper states the solution and technology that crypto wants to create and inject into the crypto market. It analyses the fundamentals of the project, of the network. Astute investors look at the whitepaper to see if buying the crypto is the right course of action. During the research for valuable altcoins to add to an investment portfolio, the whitepaper should be examined.

Team History

When a crypto project has some team members highlighting or marketing their features, potential investors tend to take the project seriously because of the history of the said team members. If the likes of Buterin or other founding members of Ethereum spearhead a crypto platform, there is a great chance that many investors would want to add that altcoin into their investment portfolio because of the trust that the cryptocurrency community has for them.

Website

Heading to the website of the company behind the project is important. From the website, it is easy to find out tutorial videos surrounding its features; access to social media links like Reddit; scroll through articles; view technical analysis tools such as chart and Github. A potential investor can know more about the coin from the website.

Roadmap

Trading an altcoin without having access to the roadmap of the crypto may not be a good idea. It is important to research the new development that the teams behind the altcoins intend to inject into the community in the future. Will there be news of innovations trickling into the platform that could revolutionize the industry in the nearest future?

Maximum Supply

One mistake an investor can make while investing in coins is to not know the max volume of the said cryptos. Valuable and solid coins are usually relatively scarce compared to those that do not belong to this league. An example is Bitcoin with a total possible volume of 21 million coins.

Social Media

A platform that is shying away from marketing itself on social media may be a red flag. Is it active on Reddit? Do the teams behind the platform have any intention of marketing the tokens that you intend to buy? Marketing is important and has a crucial effect on the value of tokens.

There are also ways to keep track of the market of an altcoin such as looking into blogs and article pages that are updated regularly, such blog pages could be found on a comprehensive list on Feedspot’s top 100 Bitcoin RSS feeds.

Exchange

What exchange is the coin on? Has the coin been listed on reputable exchanges? Can trading activities of the coin be done on exchanges like Whalesheaven or do you access the market only on small exchanges?

​Market Cap

The market cap can intimate an investor on the current valuation of a platform and the possible growth level. Ignoring this feature may not be wise.

Look for a good crypto wallet or wallet extension

This is a bonus point that could make or mar one’s investments. Storing your coins in an unsafe wallet or using a poor wallet extension could defeat the purpose of the steps above. One crypto wallet or wallet extension that can be trusted is WH Cypher, created by notable exchange, WhalesHeaven.

This is an innovative multi-signature wallet extension launched by us at WhalesHeaven, and it is designed to solve the security challenges faced by many in the crypto space. As a multi-sig wallet extension, users can store, receive, and send, crypto transactions between multiple cosigners. It allows users to sign before a transaction occurs, choose the destination of their transaction and even trade on our exchange, WhalesHeaven and other exchanges without having to divulge any personal information.

This wallet extension is giving the power to users, as they can anonymously trade on any exchange after signing in, control what happens, and much more.

WH Cypher allows users to store different cryptocurrencies, initiate transactions, and receive coins from others. This feature is designed to improve the security of transactions in the crypto space. When two parties want to exchange cryptocurrency, they both have to join as co-signers, and approve the transaction. It is only when both participants have approved that the fund will be released.

Ray Odi Ray is an astute crypto writer that loves penning content on cryptos, DeFi and other blockchain-based platforms.