I think it’s important to have a solid method to research any cryptocurrency in order to evaluate whether or not to invest. In this article I will highlight some things that an investor may want to look for in a digital currency that can help to identify good investments. This can be applied to the Afrostar token or any other cryptocurrency to help you make a decision about where to put your money.
1. Have a look at the website.
Go to the cryptocurrencies website and see it is professional looking. Is it well put together and easy to navigate? Can you find the information you are looking for easily? Does everything work on the site or are their broken links etc.
2. Who is part of the team?
Is the team doxxed or are they keeping their identities a secret? Are they well known and well respected? Do they have experience in this type of project?
3. Has the project been audited?
Techrate is one firm that audits digital currency projects. Go find the audit and read the findings if they have one. If they don’t have one this may not be a good sign.
4. Are they spending money on marketing?
Look at the website to see if they mention what they are doing for marketing. Use Google to search the coin name to see what comes up.
5. Is there a whitepaper?
Every project should have whitepaper. Go find the whitepaper for your prospect and read it thoroughly. It is a detailed business plan and the most important component for a startup. It will provide a lot of good information about what to expect from the project in the future.
6. Does the project have a roadmap?
The roadmap is a systematic scenario for implementing a project on an ICO and has fixed deadlines. This allows investors to see a detailed schedule of all stages, key periods of development and financial components.
7. What sector is the prospect project in?
Is the sector hot/up and coming? There are literally dozens of different sectors/categories within crypto. From exchanges to blockchain and wallets to gaming. Identify what sector your prospect is in and then look to see where that sector is in the current economic cycle.
8. Is the liquidity pool locked?
Liquidity is locked by renouncing the ownership of liquidity pool (LP) tokens for a fixed time period, by sending them to a time-lock smart contract. Without ownership of LP tokens, developers cannot get liquidity pool funds back. If liquidity is unlocked, then the token developers can do what is infamously known as “rugpull”. Which means developers can withdraw this liquidity from the exchange, cash in all the value and run off with it.
9. Does the Crypto have holders’ rewards?
Holders’ rewards are paid to investors that hold their coins or tokens instead of trading. Holders’ rewards can provide a decent ROI on their own.
10. Is there a buyback fund?
Some projects have a buyback fund similar to companies that buy their own stock back. The additional buying helps increase the price and the burn reduces the supply making the token deflationary and gives the price a further boost.
11. Does the crypto have a whale tax?
By taxing sellers the idea is to help protect against sudden price drops and aims to reduce price volatility.
12. Does the project have bot killer smart code?
There are an infinite number of scammers in this industry and they use bots to manipulate prices. Bot killer smart code helps protect against trading bots that try to manipulate crypto prices.
13. Does the Cryptocurrency have a multi signature wallet?
A multi signature wallet provides protection from a single person unlocking the angel wallet and stealing all the cryptocurrency. This protection applies against hackers but also disgruntled ex-employees.
The Afrostar token project meets all of the above criteria. Whether or not this means that the project will be successful or not remains to be seen. This should give you a good start on your research for cryptocurrencies to invest in. Good luck in your quest to find the next Bitcoin!
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. The Crypto market is high-risk, with high-risk and unproven projects. Readers should do their own research and consult a professional financial advisor before making any investment decisions.