Doing research is very difficult, especially if the research you are doing is on a very new-age topic which has come into existence recently like cryptocurrencies/blockchain. There is information everywhere in the internet. However, not in a structured format, not in a format that can help us make better decisions. Today, there are thousands of new tokens/coins existing, thousands are being created everyday. In this article I have tried to list out some of the most important points to look out for while researching (Not in any specific order). This list is divided into 5 major categories as listed below:
• Coin/Token Information:
1. Coin/Token Name
2. Who are the Founders of the Token/Coin
3. What is the background of the founders, their previous experiences
4. Total Supply
5. Current Market Cap
6. Is it an inflationary token?
7. Maximum Transactions Per Second
8. What kind of token is is it? (Meme/Utility/stable coin/Altcoins)
9. Consensus protocol
10. Underlying Blockchain technology
11. If its a Proof of Stake Token, then what is the liquidity of major pools?
• Token Reach/Public perception:
1. No. Of followers on Social media platforms
2. No. Of Active followers
3. User base
4. Availability in various exchanges
5. How active are the Founders & Promoters of the Token
• The problem that the token is trying to solve:
1. White Paper
2. Underlying use case
3. Partnerships
4. Vision & Mission of the Founders
5. What is the utility of the token, if any
• Competition:
1. Any competition tokens?
2. What are the areas in which this token is better than the competition?
3. What are the areas in which the competition is better?
• Project Information:
1. Which phase is the project in?
2. How many phases are there?
3. What is the timeline of executing each phase?
4. Past record of executing the phase on time?
After gathering the information, Analyse the risks involved (considering the fact that the blockchain technology & cryptocurrencies are high volatile investments) and take better informed decision. Thank You.
Do let me know in the comments if I have missed any important points while doing research.