How to know if a new project is profitable? ——


Are you unfamiliar with the concepts of cryptocurrency and token economics? Well, you missed a huge potential. 2020 is the year we saw the collapse of global financial markets. However, this is also a year in which the crypto world has advanced by leaps and bounds. Interestingly, during the months of the pandemic, a large number of new investors saw cryptocurrencies as another profitable investment.

Now, as 2021 is coming to an end, the rising value of the cryptocurrency market is still the topic of the town. New DeFi projects continue to emerge in this field every day. In such a highly competitive market, it may be difficult for a new investor like you to decide which cryptocurrency to invest in. So, how do you identify the value of a particular cryptocurrency?The token economics of cryptocurrencies can help you better understand Blockchain platform.

Tokenomics-first lead!

You recently discovered a promising project, and it’s done well. But what should you learn before diving in? How do you ensure that the project is not a scam? The best way to determine the growth potential of a project is to study its token economics. In-depth knowledge will help you skip projects with no future.

As of the current time of writing the blog, the total encryption cap is 10267 million U.S. dollars. Do you want to get a piece of the pie? Well, teach yourself before entering the new world.

There are various tokens with various tokenomics (token models). By knowing what to search for, you can increase your chances of choosing a good item. So, let’s dig deeper.

Token economics is a fusion of two words-“economics” and “tokens”.Basically, this term refers to a detailed analysis of how the digital currency works Blockchain developmentThe study evaluated the factors behind the supply and demand of encrypted tokens.Know your Crypto token Correctly, you must consider everything, including the creation, quality and distribution of cryptocurrencies.

How does the token work?

Some examples of tangible tokens are −

  • Your driver’s license means you are a trained and certified driver
  • Your gym membership represents your subscription
  • Your hotel key card shows that you paid for the room and other services

Similarly, in Blockchain platform, Tokens represent specific shares, value, voting rights, or anything. It is never limited to one specific thing. Moreover, token economics is the quality of tokens that investors are interested in. So, you may ask what is the quality of the token? In short, anything that affects the value of encrypted tokens is part of the token economy.

Tokenomics is very important when you analyze the fundamentals of cryptocurrencies. At this time, there are many tokens available on the network. The best part is that you will see more in the coming future. This is why it is impossible for humans to find a single method to evaluate these assets.

Tokenomics emerged as a solution to this problem. The main purpose is to help you understand the value of digital coins. Once you understand the principles and nature of digital assets, you will seamlessly figure out its prospects before investing.

So how to learn token economics?

When you are trying to analyze, researching tokenomics is an indispensable part of your analysis Learn blockchain. Detailed and powerful tokenomics can break or achieve the future of your new project. So you never want to risk investing in a project with poor token economics. First, your new project needs to have a tokenomics section. So how to find brownie points in new projects? Let us discuss the following basic factors:

Check the funding goals behind the project

Keep in mind that each project does not require $10 million in the initial phase. If you plan to invest in a large technology company. First look at their project goals. They may not look for the interest of a large number of investors, but you still need to be cautious.

Understanding token distribution

Each project must have a specific token distribution chart. Check whether the project team holds some tokens. But remember, the allocation should not be like 60%. Please pay attention to the team that holds most of the tokens, as this is a red flag. It is also necessary to ensure that public investors have access to most of the project’s tokens. For example, public investors in Crypto Crops can obtain nearly 39% of the tokens through mining.

View project attribution schedule

Make sure that your new project has four rounds of attribution—a) start-up round, b) strategic round, c) private, and d) public. In each round, the value of investors’ tokens should increase, just like you!

Assess the use of tokens

So, how to use the token? Now you cannot produce tokens just to store your value. It must have more uses. Once again, let us take the Crypto Crops token as an example, which is an in-game currency system. Another good example of an excellent project is Helium HNT, an IoT network with a wide range of users around the world.

What is the goal of the project?

Does your new project clearly define the set goals? A well-planned encryption project must have a detailed set of goals and a roadmap with appropriate deadlines. If it is not arranged, it is a red flag for you. A promising project always solves some real goals with key goals and consistency. Even if it is a money system in a game, it is also a form of entertainment that is in great demand. Therefore, longevity can always ensure that your income grows and prove that this is not a skyrocketing situation.

Don’t miss the inspection team leader

Find a fund manager and check their LinkedIn page. Yes, you must wholeheartedly evaluate the project before trading, which requires a lot of work. Try to measure whether the team has enough experience to add value to your new project. According to the goals of the project, does the team leader have relevant expertise in business development or management? If not, it is not your game!

So you see, checking the prospects of a new project is to evaluate and understand the basic parameters of how the crypto world works. Studying tokenomics means that you have actually invested in the development of new projects. Interestingly, it makes you satisfied because you are actually digging deeper to understand the effectiveness of your encrypted game.There is nothing more satisfying than being yourself brain Behind your success.Therefore, please stop following others and use the right tools to create your own encryption strategy Blockchain platform.

Does understanding tokenomics really help make more money?

An excellent team, detailed plans, project sustainability, clear business goals and clear roadmaps mean stable and strong growth. Therefore, looking forward to the sustainable development of your project is a healthy sign. Profitable long-term projects are always better than sudden short-term gains. Therefore, when investing in cryptocurrencies, always look for healthy market activities and action plans.

Many investors are looking for scenarios of skyrocketing and falling, because it is always a temptation to become a millionaire overnight. In addition, it is not untrue. However, this should not be a healthy norm for investment. Your investment should always have long-term growth and viability.

Final thoughts

It is not easy to understand tokenomics in one day now.You may need appropriate Online blockchain course In order to become an expert in analyzing your own transactions. The crypto world is full of scams. Therefore, you must be careful when navigating new projects. If you do not have the right knowledge, it is more dangerous than playing with fire!

Therefore, when you are a beginner, you must accept the guidance of professionals.Yes we are talking about investing in Blockchain authentication From a well-known blockchain expert. Choose wisely and grow for a better and brighter future. For more useful information and daily inspiration, please follow our blog page.


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