(Please note that ads placed on this site were not pre-selected. Please use caution when following unfamiliar links.)
I get asked about what projects to invest in a LOT. It was also the first big mystery that plagued me when deciding what projects were worth their hype. Over the years, I've come to appreciate the following evaluation methods, all of which you can learn more details about throughout this site:
How many exchanges is it listed on? How easy is it for capital to find it?
How active are the code repositories that support it? Is there a lot of innovation and development activity?
How large and active is the community? Discord, Twitter, reddit, etc.
How dependent are other systems or businesses on it? If it's a platform like Ethereum, how many other projects are built on it?
How secure is the network? What type of consensus does it have? Are there a lot of validators/full nodes? Do validators need central approval? "Are we decentralized yet" is a great initial snapshot for network security and price stability.
How many wallet holders control majority of the circulating currency supply? How many wales are there?
What's the supply cap? Do you think the community will change it?
What's the leadership like?
Where is it located/domiciled? Is the country favorable to blockchain and digital currency?
Does it satisfy a want that people have? What's the mission?
Is the platform easy to use? Easy to adopt?
OTHER RISKS INVOLVED
I've found the criteria above to be extra helpful when looking at specific crypto projects, but please keep in mind the more general risks involved in investing, such as:
Market risk. Just like with the stock market, big fluctuations in price can happen, that you don't foresee.
Personal security risks. Keep your keys, wallet, and all data associated with it, as secure as possible. See the personal security section for more details.
User errors. Know what you are doing with trading and transferring funds before you do it! Practice with small test amounts.
Crypto exchanges are not FDIC/SIPC insured.
Laws, regulation, and compliance. Know how your country treats crypto-related activities.
The best investing advice I've ever followed is- only invest what you can afford to lose.