How to confirm Crypto by looking at Cryptocurrency Character?
How to ensure crypto or not, this problem is not difficult for those who already understand how cryptocurrency works. In contrast to people who do not really understand how cryptocurrency works.
Its very easy to fall for a fraud in the Crypto-Currency Market. Right now their are more than 2000 Crypto-Currencies in the market. To help me decide what to bet on and what to leave, I have a fixed set of criteria's, which are the following-
1.)Is the crypto-currency Mine-able ?? If yes Then I proceed with my next set of enquiries. The only exception to this rule is Ripple.
2.)Try and understand what the team aims to achieve. If I don't understand what a project is aiming to achieve I wont my money in it.
3.)Once I understand what the objective of a certain project is, I try and find its current competitors. Its better to understand how they plan to be better than the current competition. For Eg if Musing was to launch a coin I would check how its Better than Quora i.e. its current rival, or Zappl or Twetter.
4.)What is the total supply of a particular Crypto-currency ?
5.)Also check the wallet distribution of the Crypto, it shall give you an idea about the number of people who support or have invested in the project.
6.)The team behind a project does matter. However for me that is not a big deal breaker. New talent at times is more innovative than the existing people.
7.)Make sure it does not sound like a pyramid or ponzi scheme. Always make sure its not something similar to BitConnect.