A Comprehensive Guide to Evaluate Crypto Projects

Zebpay
4 min readMay 13, 2024

Crypto fundamental analysis

Crypto fundamental analysis involves evaluating the most intrinsic factors affecting the value of crypto projects. Similar to the traditional financial analysis used for the stock market, it analyses the unique features of crypto assets. Most new crypto investors do not know how to evaluate crypto tokens. The objective of crypto fundamental analysis is to find the correct value of a crypto token and check if it is overvalued or undervalued. This process involves researching many factors, like evaluating the white papers of crypto projects, teams, tokenomics, communities, and others.

Understanding these factors will help determine the long-term viability of crypto projects. They will help you decide to invest or sell a particular crypto token. It is vital to understand that the crypto market is volatile and that the value of crypto can experience significant price swings.

How to research new crypto projects?

It is hard to keep track of all crypto news, as there are thousands of crypto tokens available on the market. There are many crypto projects that either go bust or turn out to be scams. So it is essential to know how to research crypto tokens to familiarize yourself with various crypto features before investing in crypto projects. Here are a few factors to consider when researching new crypto projects:

Team background

One of the vital factors to consider is the team behind crypto projects. The people working on the project will ultimately make it a success or failure. You need to look at their history, experience, and how cohesive they are as a team to achieve project goals.

Read the white paper

It is essential to evaluate the white papers of crypto projects so you can determine if the crypto fundamentals are strong. It outlines the strategies and goals of a crypto project. It is usually the first thing that investors read before allocating money, as it serves as a road map for the crypto token.

State of the crypto project

Check if the project is already running a blockchain network, has an MVP, or has built a proof of concept. The current state of the project can be determined by the maturity of its technology. Try to determine if they have started developing the product and have beta testers. You should avoid investing in crypto projects that have not started development, as many past projects promised high-value features but never delivered.

Check out the crypto project’s website and social media

It is essential to visit the website of the project to understand its main features and offerings. Check if the website is clean and functional, sharing all relevant information. Avoid investing in projects that do not have a reliable website or do not have information on their main features. You should also look at its social media to analyze how well it interacts with its community. You can check social media platforms like Twitter, Reddit, or Discord to find out how they engage with their communities.

Potential market and use cases

It is vital to consider the potential market for a crypto project. You can determine if there is a need for the solution or technology the crypto project is offering. Avoid investing in projects trying to solve an issue that does not exist or has already been solved. It is also vital to think about the potential use cases of crypto projects. For example, the market for a project will be limited if it solves an issue that concerns only a small number of people.

Tokenomics

The rules that dictate the minting, burning, and circulation of crypto tokens are known as their tokenomics. This is also an essential factor, as you can determine if the project has a small number of tokens or an unlimited supply. Evaluating tokenomics can help you know the demand and supply of a project.

Price History

Finally, the price history of crypto projects can give you insights into the past performance of all the previously mentioned factors. Check for any sudden spikes or dips in the past and evaluate what events led to the change. This feature can help you assess the risk and predict future spikes or dips in the value of the project.

Conclusion

It is vital to evaluate a few factors when evaluating crypto projects. Factors like researching the team behind the project, the whitepaper, the website, tokenomics, and others can help you determine the correct value of a project. Crypto is a volatile asset class, and it is essential to do your research before investing. It is also a good practice to get in touch with more experienced crypto investors to ask for their opinions and thoughts on various crypto projects. Evaluating the above-mentioned factors can simplify the research process and help you make the right investment decisions.

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Each investor must do his/her own research or seek independent advice if necessary before initiating any transactions in crypto products and NFTs. The views, thoughts, and opinions expressed in the article belong solely to the author, and not to ZebPay or the author’s employer or other groups or individuals. ZebPay shall not be held liable for any acts or omissions, or losses incurred by the investors. ZebPay has not received any compensation in cash or kind for the above article and the article is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information.

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