The most important thing when it comes to making money in altcoins is which project you're choosing and what its financials actually look like.

By financials, I mean simple things:

  • How much money is the project making?

  • What products or protocols does it have?

  • Where is the money coming from?

  • And most importantly, is the project actually generating revenue?

Think About the Stock Market

If you're investing in a company, one of the first things you look at is its financials. How much revenue is it generating? How much profit? How many assets does it have? What does its quarterly, monthly and yearly revenue look like?

Then you look at the products the company offers and whether those products are actually benefiting the business.

The exact same logic applies to crypto.

Most People Just Gamble

Unfortunately, a lot of people in crypto just gamble. They see someone talking about an altcoin on social media, buy it, and don't even know what the project actually does.

They don't know where the money comes from. They don't know how much revenue it generates. They don't know if the project is making any money at all.

Let me share some of the altcoins recent revenue figures, and you'd be surprised how many popular projects are barely making anything. Some are making less than $100 in revenue.

Movement - $0.07 revenue in 24h

Polygon - $79

sophon - $0

Manta - (-$22)

Lisk - $2

Hemi - $12

Scroll - (-$11)

Metis - $31

Soneium - $6

Zora - (-$2.85)

Lumia - $0

And I'm not even talking about random shitcoins. I'm talking about projects people actually know, projects that have raised millions of dollars and have a lot of attention around them. But when you look under the hood, the revenue is basically nothing.

What to Check Before Holding Long Term?

So if your plan is to hold an altcoin for the long term, one of the first things you should do is look at the project's financials.

  • What products does it have?

  • Are those products actually generating revenue?

  • Is some of that revenue being used to benefit the token?

If the project is making money and has a strong revenue stream, that's obviously a good sign.

But if the project itself isn't making anything, then ask yourself: what exactly is going to make the token valuable in the long run?

Look Under the Hood

You don't need to blindly buy something just because everyone is talking about it. Look under the hood.

If the project isn't making money, it's very unlikely that it's going to make money for you either.

Keep that in mind whenever you're investing in altcoins.

Good Luck..!