Some fundamentals for evaluating coins:
What was the initial distribution of the coin?
How are new coins created?
Is there a max cap? If so, what % of coins are created already? If not, oh boy… What is the inflation schedule?
What is the market cap?
How centralized/decentralized is the coin? Is it decentralized at all? Could someone turn it “off” if they wanted to?
What is the purpose of the coin? Even if it’s a cool idea, what gives the token value?
Any coin that has these features:
- promises ridiculous things they definitely can’t keep – it is impossible to guarantee anything, especially in a nascent industry like crypto
- anonymous teams with no names on the website – why would a legit business have an anonymous team?
- Poor validation method
- Clueless leadership
- Lack of community participation in development
- Poor transaction volume and market capitalization
- Lack of industry participation
- No proper security
- No definite usability
- Mediocre technical features
- Untraceable growth
- Too many legal risks
- Slow estimated time of arrival.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com