There is one extremely important point that I often wrote about in passing, implying that it is obvious, and now I decided to highlight this important point.
How to choose a project?
You heard about some project, for example, 'lox', from bloggers, friends, from grandmothers on benches, you dreamed of the name or a million other options, and what to do next?
Enter in Google 'what is the lox token' 😀🤷
This could be where I end, referring to a bunch of my posts about analysis, but since this is a separate post, I won't end here anyway )
You need to read the description on one of the first resources that come up and answer yourself simple questions: 'what will this be needed for in the world?' 'why will this coin be bought?' 'what functions will the project perform?'
If the answer to the first question is 'idk', the second is 'idk', and the third is 'idk'
Then you need to ask yourself one more question: 'why will the price show growth?' and if the answer is 'because Archibald said so on YouTube with bulging eyes', you should not buy this coin and try to find out what their situation is, who invested, etc.
In order for the portfolio not to consist of humus, you need to ask yourself these questions before buying each asset and get specific answers to them, for example:
1 - it is the token of the most used wallet, and soon there will be an update where this token will be involved.
2 - it is the only ECO blockchain in the world, the project has support from the UN, and when the world remembers again that crypto harms the environment, with such support and such a reason in the information field, the coin has huge prospects.
There can be many more examples, but the essence is the same; the answer to the listed questions must be there, and the explanation must be understandable even to a child. If the answer includes some obscure words that a talking head utters - it is just another piece of trash, buying which has no better chances of success than in a casino.
And only after answering these questions should you proceed to full analysis 🦾
