How to Research a Crypto Coin Before Investing
With thousands of cryptocurrencies on the market, it can be overwhelming to know which ones are worth your time and money. Some projects bring real innovation, while others are little more than hype. The key to making safe decisions is learning how to research before you invest.
1. Start with the Basics
Look at the project’s website. Does it clearly explain what the coin does, who it’s for, and why it exists? A professional, transparent presentation is often the first sign of credibility.
2. Understand the Team
Reputable projects usually highlight the developers and advisors. Take time to research their professional backgrounds on platforms like LinkedIn. If the team is hard to verify, that’s worth questioning.
3. Read the Whitepaper
Every legitimate crypto project should publish a whitepaper — a document that explains the technology, the purpose, and the long-term vision. If a project lacks this or if it feels vague, copied, or overly promotional, that’s a concern.
4. Analyze Market Activity
Coins listed on established exchanges with consistent trading volume are generally safer than those only found on small or unknown platforms. Look at how much liquidity the coin has, and whether trading looks natural or artificially inflated.
5. Look at Real-World Utility
Does the coin solve a problem or bring something new to the crypto space? Many projects launch coins without a clear purpose beyond raising money. Be cautious of promises that sound too good to be true.
6. Case Example: MyBLT
Take a coin like MyBLT as an example. Before investing, ask yourself:
Who is behind it?
Does it have a whitepaper and clear roadmap?
Is it listed on major exchanges?
What problem does it actually solve?
Here is a quick search on MyBLT:
Reddit: MyBLT Scam?
CoinDaddy: MyBLT Scam?
Counterparty: How to convert MyBLT token?
It appears that the MyBLT coin has been sold since at least 2019 with a promise of launching (which it hasn’t) and is still not on a major exchange. As of today, the coin appears to be worthless.
Applying these questions can give you a clearer picture of whether a coin is credible or simply speculative.
Final Thought:
In crypto, knowledge is your best defense. By following a structured research process, you’ll be less likely to fall into traps and more likely to find genuine opportunities. Always remember the golden rule: Do Your Own Research (DYOR).
Helpful Resources
Investopedia - How to research cryptocurrency investments
CoinGecko — Check crypto prices, market cap, and volume.
CryptoCompare — Research tools for coins and exchanges.