- Look for real-world use cases: Cryptocurrencies with strong utility in solving real-world problems tend to have better long-term potential. Examples include Ethereum (smart contracts), Chainlink (oracles), and Stellar (cross-border payments). Ask yourself: What problem does this cryptocurrency solve, and is it scalable?
- Evaluate the team: The experience and reputation of the developers behind a project are key indicators of its potential success. Look for teams with a strong track record in blockchain development and industry knowledge. Public profiles, open-source contributions, and transparent project management are signs of legitimacy.
- Adoption potential: Consider how widely the cryptocurrency is being used or adopted. Partnerships with big companies or platforms can boost a project’s legitimacy and growth prospects. For example, Ethereum has strong use cases in decentralized finance (DeFi), NFTs, and enterprise blockchain solutions, making it highly attractive to developers and businesses.
Focus on Long-Term Value and Utility