With over 10,000 coins that you can invest in (even more if you consider the huge numbers of pump-and-dumps on BSC and other chains), how can you make a decision as to which coin you should invest in? Way too many teams in the crypto-sphere promise too much and deliver too little, resulting in coin values that lose over 99% of their value in short periods of time. How can you be sure that what you're buying will result in a profit? Here are some principles that I think might help you make better decisions.

Community

^{Source: Unsplash}

Pick coins with a strong community behind them.

The community behind any coin is one of the most valuable things that a coin can have. We've seen the astronomic rise of Dogecoin and Shiba Inu in the past, and more than anything, their success was pinned on how big and how frenetic their communities were. You had people who were crazed about them and honestly, flat-out delusional. However, it did wonders for their price.

If this has taught us anything, it's that crazed communities (to the point that they're genuinely delusional) play a big part in increasing coin prices. I'd liken it to obsessed fans of brands like Apple. Regardless of how good or how bad the underlying coin is, having obsessed fans that turn into evangelists is always a positive sign.

Builders

^{Source: Unsplash}

Pick coins that have dedicated and experienced builders.

Many successful coins involve successful builders that are toiling day and night to produce a perfect product. The better the builders are, the more successful the coin will be - mostly. If you have the technical expertise to understand when a team is underdelivering, that's even better. I understand that not everyone has enough technical expertise to judge if a certain team's builders are good, but you can often tell when a team isn't doing well if they're constantly delaying, have bugs that are easily fixable, or continue to promise the world but deliver nothing.

Personally, I've witnessed tons of community members of various coins have wool pulled over their eyes and not know that a coin's developers and builders have absolutely no skill and will never live up to whatever they promise. This doesn't mean that the coin will never experience a pump, but rather that the coin is almost destined to fail in the long term without intervention.

Tokenomics

^{Source: Unsplash}

Pick coins that have decent tokenomics.

You can have the best utility coin in the world, but if the supply inflates at 100% a year, it will not be profitable to buy and hold it for the long term. Tokenomics are important - knowing where the supply goes and how it can sustain the coin's growth is important. And one of the most important parts of a coin's tokenomics is how it plans to generate demand for it. Distribution, locking, dev funds - all these don't matter if no one wants the token. Ensure that the team has a plan in place and that they are accountable to the plan.

Following these, I'd believe that you'd have a way smaller chance to get rugged or end up with tons of useless coins. All that being said, things can always seem unpredictable in the crypto-sphere. Always be receptive to change, and keep notes on the ever-changing landscape.

Posted Using LeoFinance ^Beta