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DYOR: How to Research Crypto Projects

DYOR: How to Research Crypto Projects

By SimpleSwap | SimpleSwap Blog | 17 Jun 2023


A simple rule: if you invest money in everything you see without doing any research, – you are more likely to become broke than to stumble upon a profit. In the crypto market, as in chess, in order to win, you need to have strategy, show intelligence and know the theory perfectly. 

Places to know

In order not to waste time and energy, you should understand what to invest in. When it comes to crypto projects, you need not only be able to hunt them, but also know how to select them.

Research takes a lot of work. It includes a search for information about the project and an analysis of its strengths and weaknesses, all available nuances, prospects. The main goal of the research is to make a list of profitable projects, in which you could invest.

Different kinds of crypto projects require different research methods. For example, in the NFT market, it would be much more reasonable to focus on the quality of art and the mint process, while in fundamental projects, we should be interested in the activity of a team and in tokenomics.

In this article SimpleSwap introduces methods for research that can (and should) be used for a crypto project of any type:

  • Twitter project analysis
  • Site analysis
  • Studying the project team
  • Studying the topic of the project, understanding the ideas
  • Research of trends, funds and competitors

Let’s dive into these points in more detail.

Twitter research

Usually, a crypto project’s team creates accounts on social networks at the very beginning. And the most popular platform is Twitter. You should start your research with it. Don’t forget that the number of subscribers is not the main thing. After all, most of them may turn out to be bots. It’s better to check if there are world-famous influencers among the subscribers of a new project, businessmen or some other significant people. In that case the likelihood that in the future this project will shoot increases. 

There are special tools, like TweetScout, that help to analyze Twitter accounts. Usually, it is enough to enter the name of the project into the platform's search box to instantly get all the necessary information about it.

It is also important to look at what the project account itself is subscribed to. Often, that helps to find the developers, which is an information treasure – it’ll help to learn more details about the project. 

Site research

Twitter accounts sometimes have links to the project 's official site. But some developers do not want to show the site in advance, so you can go the other way. Here are convenient tools, like LXRMarketplace, for example. It is enough to type in the name of the project into its search, and it’ll show all domains ever registered in this name.

You can analyze the site according to the following parameters:

  • design of the main page (the first impression is very important);
  • everything works properly, there are no lags;
  • there are links to the social networks of the project team;
  • websites are translated into several languages, including English – an international language.

Project team research

It is important to remember – the team members will be entrusted with investor capital. In the event of a failure or a success, it is they who will be responsible for everything that happens. Therefore, it is nice to understand who you have to deal with. The best outcome is when there are links to the developers' accounts on Twitter and LinkedIn. On LinkedIn, you can easily learn what other crypto projects the developer was involved in. 

Project idea research

Before investing in something, you need to understand the idea behind it. You should find answers to two basic questions: why is the project being developed and how is it being implemented? Crypto projects are designed to solve the problems of the digital space, and a competent crypto project clearly explains what it is fighting against and by what means. 

Trends, funds, competitors research

At this stage of the research, it is important to understand:

- Does the project fall under the current trend in the market? If yes, then it could become popular.

- Where will the project get funds? Any information is useful here: how much money is already in the project, who invested, how many tokens are planned to be released into circulation, etc. Note that in the majority of cases, initial investments are attracted as discreetly as possible.

- What is the percentage of competition? If the idea is good and relevant, then few teams will think about it at once. Market research of project competitors often gives an understanding of the overall picture of the situation on the market, and in comparison, all weaknesses and strengths might be revealed.

Conclusion

There you go! Now you know some life hacks about how to research crypto projects before investing in some. Of course, that’s not everything you need to check out, there are also roadmaps, whitepaper, etc. But that’s where you can start doing your research.

As you can see, you will have to spend a lot of time on theory, but the information that you’ll find will help you to make a good decision. How do you do your research on crypto projects? What methods do you use? Share your life hacks in the comments below.

If you want to learn more interesting facts about crypto then check out our blog! You might like our articles “Between FOMO And JOMO” and “New Metaverse Projects”.

The easiest way to buy, sell or exchange coins is to use SimpleSwap services.
SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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