How to Analyze a Crypto Project Before Investing | BPAYNEWS Learn
The best defense against losses is a disciplined research process. Use this framework to evaluate fundamentals, token design, and on-chain signals before you invest.
Core Fundamentals
- Problem & product fit: Is the project solving a real problem with clear users?
- Team & transparency: Backgrounds, prior exits, public activity, investors.
- Roadmap & shipping: Demos, testnet/mainnet milestones, code commits.
Tokenomics Checklist
- Supply: Circulating vs total vs max; emissions, burn, or buybacks.
- Utility: Governance, staking, payments, collateral, access.
- Distribution: Team/investor allocations, cliffs, vesting schedule.
- Liquidity: DEX/CEX liquidity depth; lock status; market maker behavior.
Red Flags
- Anonymous team with aggressive promises and no code.
- Unclear token utility; disproportionate allocations to insiders.
- Guaranteed returns, fake partnerships, plagiarized whitepapers.
Quick Process
- Skim website + docs; verify contracts and audits.
- Check social metrics quality (engagement > follower count).
- Review liquidity, volume, and price history.
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Written by BPAYNEWS Learn | Category: Research / How-To
