Steps to analyze a crypto project

• Overview Introduction
• Detailed steps in the project analysis process
• Step 1: Capture the basic indicators of the project
• Step 2: Review the community's assessment of the project
• Step 3: Expand information search to all sources
• Step 4: Create a project analysis checklist
• Step 5. Create a folder to track the project
• Step 6. Ask the project developer questions
• Why step by step project analysis?
• Know the basic information, do not confuse to another project
• Access project information from general to detailed
• Save time and comprehensively evaluate the project
• Remove inaccurate information and update new information
• Conclude

The cryptocurrency market has tens of thousands of projects and new projects appear every day. In order to select the potential projects among those countless projects, investors need to be able to analyze and evaluate a project accurately. So how to analyze a crypto project? Join us in the article below to understand the overview as well as learn in detail the specific steps to conduct an analysis of a cryptocurrency project!

Overview Introduction

In this article, we will discuss the exact process to help investors research a project better. Thereby helping investors have a more perspective on the analysis of the project before deciding to put down money.

Analyzing a crypto project will focus on two important parts. The first part will focus on collecting useful resources, while the second part will revolve around analyzing and evaluating the collected information sources. These contents will be introduced in detail in the steps to perform an analysis of a cryptocurrency project. 

Detailed steps in the project analysis process

Here are the specific steps to analyze a crypto project.

Step 1: Capture the basic indicators of the project

First, investors need to learn the basic information and indicators of the project such as project introduction, price movements in the market, total supply or total circulating supply, capitalization, etc. You can find this basic information through the two websites CoinMarketCap and CoinGecko . This information will help investors have initial judgments about the coin/token they are looking for. 

Step 2: Review the community's assessment of the project

After having basic data about the project in the first step, investors need to expand information sources through social networking sites such as Blog, Twitter... This is also an important source to help traders update information. Latest and review community response and project evaluation. 

In addition, these sources also help investors grasp the important characteristics and terminology of the project being studied. In addition, Twitter or other social networks also provide information, helping investors assess whether the project is going according to the committed schedule or not. 

Step 3: Expand information search across all sources

At this step, investors need to find out information from all other official sources to fully understand the project such as website, Github, Podcast, Youtube....

Website

This is the most basic channel to help investors review the detailed content of a project. Is the project's website well-invested? Is the content on the website complete and updated regularly?… Not all projects that have been heavily invested in marketing and website by the development team are successful, but most of the projects have a foothold in the market. are full of information and regularly updated for investors to believe in money. 

Many subjective investors do not study the website of a project but focus on price movements in the market leading to investment losses or money being stolen because of the rug pull development team.

Whitepaper 

This is an extremely important information channel to help investors understand the details of the project they are looking for. The development team is responsible for drafting and describing the project in detail from the reason for the project's formation, how the project works, the mission, etc. to help investors understand the project thoroughly before making a decision. investment decision. 

To write an honest and attractive whitepaper to investors, the writer needs to have a deep understanding of the project, blockchain technology or the economic situation in the market. Therefore, this is also a channel to help investors evaluate the project as well as the important characters that make up the project. 

Github, Postcast, Youtube and other channels

These are also information channels that help investors check a lot of information about the project, the development team, the team's working process, etc. After collecting data and finding out project information in many places, different sources of information, investors should aggregate into a list for easy tracking.

Step 4: Create a project analysis checklist

After you have found enough information sources, the next step investors need to care about is to create a checklist to analyze the project. This checklist includes the following information:

• Brief summary of project information: Project highlights and risks.
• Answer important questions: What is the project about? What are the characteristics of the project and how does it work?
• Evaluate project architecture: How the project plans to deliver solutions through technology.
• Find out the solution of the project: What problems does the project solve and bring solutions to the community?
• Evaluation of project applications: Does the project have any practical applications?
• What is the project's competitive advantage?
• Competitor analysis: Research and evaluate similar projects in the same segment.  
• Detailed analysis of project tokenomics information: Coin/token supply, market cap and FDV (Fully Diluted Valuation), token governance, token allocation…
• Learn the milestones in the project's roadmap. 
• Find out the price history of coin/token on the market. 
• Find out information about the project's development team. 
• Find out information about strategic partners, investors of the project.
• Review and evaluate the project's interactive channels: Review the interaction of articles posted on social networks by the project. 
• Summarize all the information and write down your feelings and reviews about the project you are looking for. 

Step 5. Create a folder to track the project

Besides creating a checklist to summarize information, investors should create a folder on the computer to store information about the project. This helps investors easily update new information or correct inaccurate information of the project. 

Step 6. Ask the project developer questions

After thoroughly researching the project, if investors have any questions about the project, please find a way to contact and discuss with the project's development team to find a reasonable answer. We believe that a good project will certainly take care of investors' questions and concerns and find ways to answer them.

Why step by step project analysis?

Surely many investors will wonder why it is necessary to perform such a complicated step-by-step project analysis. In fact, this helps research projects save time and more effective. Here are the reasons why investors should analyze the project step by step. 

Know the basic information, do not confuse to another project

Using specific and clear steps helps investors understand the project's information and not be confused with other projects. Besides, the information in the form of data such as tokenomics , price movements, market capitalization, etc., helps investors easily compare and visualize with similar projects in the same segment. 

Access project information from general to detailed 

Blogs like Medium or information on social networks help investors have an overview of the project before digging into details. Often, the content on these platforms is broken down more simply than you can read in the Whitepaper. After having an initial understanding of the project, it will support investors to do in-depth research through sources such as Whitepaper, website ... more effectively. Therefore, dividing the steps to approach the project makes it easier for investors to learn and understand the project more deeply. 

Save time and comprehensively evaluate the project

Finding information without a system makes investors waste time and not achieve high efficiency. On the contrary, studying the project through clear specific steps, helps traders visualize the clear roadmap and saves time. 

Besides, collecting information on a large scale and then using a checklist is an important step to help the research be effective and the information is concretized and clear. Each project has a separate expression, so it is compiled in the form of checklists with a familiar structure to help investors easily understand, evaluate and compare projects with each other. 

Remove inaccurate information and update new information

Information about the project on the internet is quite diverse and there are many cases where the content is outdated or inaccurate. Therefore, analyzing a cryptocurrency project through clear specific steps helps investors to synthesize, update the latest information and remove information that is outdated or inaccurate. 

Conclude

Above is an article that shares how to analyze a cryptocurrency project with specific steps to help investors choose potential projects. The careful analysis of the project is the foundation to help investors make accurate investment decisions. 

Therefore, investors must spend a lot of time to learn and research information about the project from many aspects to help identify the project objectively, multidimensionally and more accurately. Hopefully, through the article, you can practice research to choose potential cryptocurrency investment projects. Good luck!

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