Updated: Apr 8, 2018
Before you invest in anything, you need to put some time in doing research. You cannot rely on someone else for their opinion and you cannot take a single source as fact.
Researching coins has become one of my favorite things to do. I really enjoy learning about a company, reading their whitepapers, and trying to find out what they have to offer. While there's no guarantee on whether or not a coin will be successful, if you follow a few simple steps, it will help you gain insight into whether they are legitimate and whether or not you want to invest your hard earned money. Here are some tips to get you started.
EVERY company should have a website. If they don't...in my opinion, stop and move onto a different one that does. Communication is key. A good company of any kind, crypto or not, will keep you updated with news, events and progress. Here are some things you should check or ask yourself.
Do they have a whitepaper? (a whitepaper explains a vision for the company, including their purpose) This is where I learn most about the company.
Do they have contact information? I know this seems simple, but I've actually seen websites with NO way of contacting them.
Does the coin have a real purpose or vision? This is very important. Anyone can create a coin but where does the value lie?
What does their team look like? You definitely want to make sure their team is made up of knowledgeable people. Most officers have a bio on Linkedin that you can check. Where have they worked? Do they have the experience necessary?
Do they have a roadmap? (a roadmap explains the goals for the coin/company)
Does the company have a presence on social media? This includes Facebook, Twitter, YouTube and Reddit. If they do, give them a follow. Make sure they are regularly updating their sites.
What are people saying on bitcointalk.org? You may find a million different opinions, but it's a good place to see what people are saying and weigh them against each other.
What/how any exchanges is the coin listed on?
Look at the chart for the coin. Has there been growth since the coin started?
I think when you pull all of this information together, you should have a better understanding of whether or not the coin is something you want to invest in.
In addition to following the company on social media, I suggest going to Coinmarketcal where you can sign up to receive email alerts for upcoming dates for an individual coin. Never invest in something only because someone tells you to. It's good to take suggestions, but then follow it up with your due diligence.