What problem(s) does the project solve?

Is the product useful? Useful for who and at what scale?

Are there other projects competing for the same uses?

These are all the types of questions an investor should find the answers for.

Ultimately, if there are not strong use cases for the project, it’s a pointless investment.

Bonus points for solving unique problems or improving on previously succesul protocols.

Tokenomics (token + economics) is a term that encompasses all the aspects that make up the supply and demand of any particular crypto token.

By understanding the supply and demand of a cryptocurrency, we can make educated estimates about how much future buying and selling pressure there might be.

Decentralization is about dispersing the power of a system so that no one has to trust any person, company, or institution to act honestly to execute the system.

Decentralization is the core concept of cryptocurrency and the more decentralized a project is, the more secure it is.

We also group the general security of the project in this category.

This includes smart contract code security (audits are the best), community exploits, and any other potential vulnerabilities.

Where there are users, there are investors.

Where there are investors, there is money.

Where there is money, there are developers.

Where there are developers, the project and ecosystem grows.

You can see how a large network effect and high adoption rate can turn into a perpetual cycle of development and growth.

The opposite is also true.

The team is the driving force behind any project.

Ideally, the team leaders have a track record of bootstrapping an idea and seeing it through until it becomes a profitable product.

Experience and a track record are certainly beneficial, but don’t completely ignore a newer team that shows plenty of hunger, tenacity, communication, and technical skills.