1. Zhuang

1. Why do I put the dealer first? Because there are dealers behind almost all coins. You talk to me about decentralization and code is law. I want to say that the essence of writing code is to make money, and the purpose of all virtual currencies going online is also to make money.

The strength and pattern of the banker are always the most important

A banker with a big picture and strong strength who wants to make more money will not stop when he sees the good, nor is he afraid of losing a small amount of money. The banker chooses to take the long term, so you will not have short-term risks.

2. How to get information about the banker? You can search for the project's founder, investor, and promoter (caller)

As for their financial situation, to put it simply, the more money they have in their pockets, the better. If they are not short of money, they will not harvest the profits early.

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2. Practicality

1. What is the purpose of this project and what problems can it solve?

Ethereum can be used as a handling fee;

Or can privacy coins be transferred anonymously?

Or L2 can improve the efficiency of Ethereum mainnet

Or have the right to vote on a project

In other words, you can get a certain amount of project dividends

2. Then you need to know how many people are using this project now, how many real users there are, and how many people will use it in the future.

Simply put, the more people use it, the better, and the more urgent the problem it can solve, the better!

For example, Little Fox has more and more real users, which makes it a good project, but it does not issue coins.

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3. Technical Team

1. Technical background is also very important, such as being a member of the founding team of Bitcoin or Ethereum, or having developed well-known projects. In short, the more successful cases, the better!

2. Roadmap The update speed of a project, whether there is a long-term roadmap, and whether the established route is completed step by step are key indicators of how far a project can go.

As market competition becomes increasingly fierce, the most important thing is to keep pace with the times and constantly upgrade your products.

Many small projects don’t even update their codes after they go online. The future of such projects can be imagined.

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IV. Market value

1. The circulating market value has a great influence on the pull. BTC and ETH are both good projects, but their circulating market value is too high, and each doubling requires a lot of funds.

If the principal is relatively small, then it will be easier to double the capital for projects with a lower circulating market value and greater room for imagination.

2. Many projects have an unlocking cycle, that is, in addition to the circulation, there are a lot of additional issuances every year. The additional issuance will dilute the overall currency price. You need to know clearly how many new tokens a project will unlock and to whom it will be allocated at what time of year. If the unlocking amount is too large, you must carefully evaluate the risks.

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5. Market Heat

The exposure of a project on Twitter, DC, chat groups, and various information channels is very important. If everyone is discussing a project every day, then at the very least, the volatility of this project will be very large. As long as someone hypes it, someone will definitely buy it.

If a project was once famous but is now unknown, it is like a stagnant pool of water and there will be no fluctuations.

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6. Chip Distribution

Of course, a good project has chips that are as dispersed as possible, which means the project is highly decentralized.

But we are here to make money. Sometimes, the projects with more concentrated chips will perform more vigorously, because when the dealer wants to sell the goods, he must hype and pull up the price. When the price is pulled up, that is when you make money. It depends on the situation.

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I feel that many of my friends who follow me do not have a deep understanding of virtual currency, so I wrote this article. Maybe my understanding is not particularly in place, but I hope it will be helpful to everyone.