Jumping on the trend of digital money might seem exciting. Investing in crypto, which has seemingly taken the world by storm, might feel like a game to you. While it does have rules, and there are winners and losers, crypto investments are far from a weekend hobby. With tons of research and a little help from industry experts, you can dip your toe in and test the waters at your own pace.
Jon Lee, an acclaimed blockchain and crypto investor and co-founder of BXV.co, gives you access to his gold mine of research and years of experience. Read on for his list of 3 things he considers before backing any crypto or blockchain project.
The Team/People Behind the Project
Do your research on the team backing this particular project. Do you see any trusted, reputable names on the list? Study their credentials like you would when hiring a candidate for a job.
Why should you do this? “Because it is crucial to know if these are the kinds of people who are qualified enough to take care of your potential investment. Or if they are mere crypto wannabes on the lookout for their next victim,” explains Jon.
The Community
Scope out fellow investors or the token’s community. That should give you a fair idea about the type of backing this project has.
Also, Jon Lee says that it is always good to be aware of what the people are saying about the crypto token. Use social media extensively for this purpose. Pay close attention to the reviews. While those can be bought, it couldn’t hurt to become a part of and keep an eye on the online community backing the token.
The Product/Idea Itself
Finally, it would help if you were sure that the product or idea is solid and has a bright potential. Well, how could you be sure whether a project has a bright future? Jon Lee suggests that a giveaway is to see what change the idea could bring about. Is it a token that will fill a utility gap in the market? Is it something that solves a big problem or makes life easy?
“If you find that the product has a real purpose worth noting, chances are, it will experience good demand. And that should reflect in its tradable value,” shares Jon.
As you might have realized, investing in crypto, NFTs, and other blockchain assets isn’t that simple. However, Jon Lee’s quick advice is worth considering before venturing into the decentralized world.
