Few points to consider while purchasing any crypto coin and tokens in 2023.
So with the recent pump of Bitcoin to above 34K USD after making so many attempts to cross to $30K USD and slipping back, it looks like the Crypto community can now hope for a strong bull market. A bull market also elevates the interest of other non-crypto users as well and dormant users which further helps in reaching new highs and prolonging bull effects. But with more interest, you can not escape the negative effects, like more activity of scammers and bad actors that is now not linked towards hacking, phishing or stealing but it can be a complex scheme where you can be hyped to buy useless coins and tokens that were specially launched to fool the users.
I guess , if someone is going to invest in a brand new project or any existing project should at least consider the following points.
1. Fair launch.
Is coin/ token really launched fairly without giving undue advantage to the development team? In the case of coin, it is like too much premine, ninja mine or any unfair tactics that give the dev team an upper hand in getting a too-strong stake. In case of token, there can be too much allocation to the dev team or some specific wallets/entities that look suspicious.
2. Trustable team.
You should know the credentials of the team before investing your money. Do not invest "all of your savings" in some random projects where you have no idea who are the people behind the project and what actually are their intentions.
3. Supply and Inflation.
One should pay attention to all of the parameters like the current supply of the coin/tokens, the Overall supply of the token, and the yearly inflation. For ex. let's say a coin launched at $1 price has 1 Trillion coins minted, make an overall market cap of 1 Trillion. It is very hard to have a 1 trillion market cap without any solid project and you will see that how inflated the coin price is in this case.
4. Total addressable Market and market cap.
If you check the current market cap of the coin /token (price of 1 coin * total number of coin in circulation= market cap of the coin) and see the total market cap of the field in which the coin is providing utility, you will be able to make a quick judgment if it is an overhyped project or under the radar project.
5. Utility and Sustainability.
If there is no utility associated with coin/token and there is no roadmap that can explain how the coin/token can help in creating sustainable tokenomics then one should stay away from these projects as in the long run they are destined to fail.
I hope that you might agree with those points and will like to share your parameters for checking whether to invest in a particular coin and tokens.
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