Greetings to everyone on Leo Finance. This is my first post on Leo and so far I am impressed by the site and community. I've spent the last year helping various crypto projects to get going and grow via the Digital Marketing company I run called Crucial Web (@crucialweb), so I have been diving into ever wider areas of research and look forward to sharing some of what I have learned here.
As the De-Fi movement gains momentum, I am seeing more and more projects springing up from people who have only recently got into cryptocurrency and realise it's potential to solve problems in their own industries. From promotions to pensions it seems that every possible niche is being filled with interesting crypto solutions. So how do we know which ones to support or explore?
Obviously, this is the 64 Trillion Dollar question, with perhaps the bulk of the world's industry and finance on the line, there are a wide array of methods for assessing the future success of projects. While some may have the air of scientific authority, just as with most other areas of research, they often come down to being little more than the modern day equivalent of throwing rune stones! I don't claim to have all the answers and I haven't become fabulously wealthy, but I'll throw in my 2 Satoshis here, all the same. ;)
Most investors will agree that regardless of the type of project, one of the most important factors in whether or not you generate big returns on your investment is whether or not you buy in to the project early enough on that the token price can relatively skyrocket or perhaps that you collect the gains before competition is too fierce (in the case of projects that pay out based on some kind of financial activity beyond merely holding tokens).
With so many competing projects emerging constantly and with many of them likely to go nowhere or even be scams, what are some of the logical steps we can take to make good decisions?
Remain neutral. Many of us hold belief systems so strongly that we will allow them to direct our logical thinking, even in unlogical ways - just because we 'want' something to be true. It doesn't matter how much you want velvet flared trousers to make a comeback, it's unlikely to happen just because someone launches a 70s Fashion crypto project. Research and neutral analysis needs to overcome entrenched thinking patterns!
Winning Team? Regardless of a project's goals or mission statement, it won't be likely to be successful in the long term unless it has a reliable and effective team behind it. Having a great idea is one thing, but having the experience and problem solving ability to stay the course in such a complex world is something quite different and much rarer. If a project doesn't even list it's team's names and history then I would personally steer clear. Somewhat counter intuitively, if a team has key members who have previously run some failed projects, this can actually be a good thing as they have learned the lessons of failure prior to coming to their present enterprise!
The Big Picture. While it is totally possible that you can find a project that returns huge gains over a short period of time, it's generally a wise move to take some time to keep up with what's happening in the rest of the world if you want to pick projects that will be around for a long period - consistently making gains. The world is complicated and just as with traditional shares and business ventures, seemingly unconnected events can influence a crypto project's successes. Whether it be government regulation of an industry, a war, an invention or some other world event - it pays to be on the pulse of things globally.
Think big.. or small! Many of the world's 'legacy' industries and systems can be converted into blockchain equivalents (in general, attempts at most of them have already been made or are in progress). Focusing on a small niche interest project can reap great rewards due to phenomena that may be heard to discern at first - however, projects that aim to solve big global problems have the potential to go stratospheric if they go mainstream. It's likely that we will be seeing more and more well planned projects gaining mainstream traction in coming years, so don't discount that possibility. Simultaneously, pay attention to forums and discussions online relating to smaller projects that might manage to tap into a lucrative niche (but don't forget your due dilligence research and the first 3 points!).
I'm currently looking at a wide variety of projects and listening to advice from trusted sources. In general, I am looking to try to support disruptive technology that aims to free up humanity and help to make life better. At the same time I will consider less evolutionary projects if they stand to generate strong returns in a short space of time that I can then fund directly into ethical projects.
Got any tips for us - Let us know in the comments below!
Note: This is not 'financial advice'. If you want that stuff, find a financial advisor.
Wishing you well,
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