How To Make A Good Crypto Investment Starting From Presale (with a real example)

Making a good crypto investment requires guts, brains, and – most of all – your analysis. You might have heard the following phrase thrown around in the crypto community;

“Do your own research” or “DYOR.” 

It’s something you really shouldn’t overlook. 

Many people have been burnt buying into projects without looking at technical or fundamental metrics. However, the problem is that most people don’t know where to start when making a good crypto investment – regardless of whether it’s a presale.

In this piece, we will teach you a handful of excellent methods in looking for a good crypto investment starting from a presale. Additionally, we will use Dash 2 Trade – a new world-class crypto analytics and intelligence platform – as a real-world example of how to make a good crypto investment. 

Take an Overview of the Entire Project

The first thing to do is to step back and look at the project from a top-down approach. 

You need to assess what the project is and if it has a place in the market. Additionally, you need to understand where the project might be able to generate revenue or value because a project that can’t generate revenue doesn’t have any long-term future. For example, the value generated from Ethereum is through the transactions created by all the projects deployed on its network – this is where the revenue is generated for Ethereum.

Another overview aspect to contemplate is if the project will be a fad or if it has a solid foundation to stick around in the future. Plenty of hot cryptocurrencies have been fads that haven’t survived in today’s market – think about the countless NFTs that launched regularly over the past two years. 

Dash 2 Trade has a perfect place in the market as it helps traders identify trading opportunities and execute them accordingly. We already know how many traders there are, and all these guys undoubtedly need help. Dash 2 Trade is a world-class crypto analytics and intelligence platform that helps traders take their profitability to the next level. The platform offers crypto trading signals, predictions, and social analysis to help traders make informed decisions. 

The in-depth market insights can quickly help traders outperform the market – something they’re already attempting to do daily. 

Analyze the Whitepaper

The next thing is to analyze the whitepaper for the project. The whitepaper often provides the most intricate details, and it’s where you should be able to find elements that aren’t easily accessible on the project’s website. 

If a project doesn’t have a whitepaper, it raises red flags. Also, if the whitepaper is just one page, it should raise some concerns. 

However, suppose a whitepaper is detailed and provides an in-depth outline of the project’s future direction. In that case, you should receive some comfort in knowing that the project leaders are competent, as they have put effort into publicly detailing the project as much as possible.

The Dash 2 Trade whitepaper is a perfect example of everything a whitepaper needs to be. The whitepaper isn’t too long at 16 pages, but it skips all the technical jargon that is often not required for investors to decide if they want to buy.

Their whitepaper contains all the information a serious investor would need to know before deciding to buy into the project. It covers everything from the product’s features to the future roadmap and marketing strategy.

Look Into the Community

The following important factor to consider is the community of the project.

A project could be one of the most groundbreaking technological advancements in the industry but will still go nowhere without a solid community championing the project.

If a project has promise, it will attract people. If the community is large, you can be sure that there is a reason that they have attracted a significant number of people. But, more importantly, that large community is sticking around for a reason, and it’s your job to figure out why.

Furthermore, the community must be welcoming, with as little toxicity toward new members as possible. 

Great places to research the community are Telegram and Discord groups. Additionally, checking official Twitter pages to see if they receive likes/retweets is often an excellent social metric.

Dash 2 Trade excels in this area, already having over 20,000 followers on Twitter and 9,000 in its Telegram group. 

However, more importantly, the overall community for the project has 70,000 traders. The community was established from its sister project, Learn 2 Trade, a successfully running trading signals project since 2017. Therefore, Dash 2 Trade can easily leverage its previous community to get its latest product up and running. 

With such a large community, it makes sense that Dash 2 Trade has some of the most vital resources to become successful.

Analyze the Team’s Capabilities

The following important factor to consider is who is creating the project and what sort of advisors are helping.

The main goal is to assess whether the team has the right experience and expertise to push the project forward.

There have been plenty of cases of fantastic cryptocurrency project concepts gaining traction quickly – only to fail down the line because the team could not bring the idea to fruition. Furthermore, many projects managed to raise millions in funding over time, but developers are still “working” on the project – even years later. 

An excellent method of researching the team is looking at their LinkedIn track record. For example, if the team is relatively young, they might have the technical expertise to create the product but lack the business experience to market it to an audience. On the other side, if the team is full of business people, they are likely to outsource the technical development for the project – which typically never ends well.

Dash 2 Trade won’t have any problem bringing their intuitive concept to fruition. The team is highly experienced and ultimately successful in creating businesses and projects. They are the same team that created Learn 2 Trade, which attracted over 70,000 users. So, you can be sure that the team is quite capable of bringing Dash 2 Trade to reality. 

The head of Product is Duco van Rossem, a previous associate and quantitative researcher at J.P Morgan. He also has experience setting up machine learning-driven prediction products from Relay42 and earned a master’s degree in Financial Econometrics from the University of Amsterdam. 

Orlando Gutierrez is the Head Trader for Dash 2 Trade. Gutierrez has been trading forex and futures since 2010 and served as the Head of FX at Tradimo Interactive. 

Has the Contract Code Been Audited?

Another important factor to assess is if the contracts have been audited by a third-party service for bugs and backdoors. Although developers are usually experts in their field, they can still make mistakes. Therefore, it’s always essential to have an outside party analyze the code for additional security to prevent potential hacks. 

Some of the top auditing companies in the industry include Hacken, Certik, SolidProof, and Quantstamp. 

Furthermore, anonymous teams might seem pretty cool, but it opens the door to “rug-pulls,” where teams dump all their tokens and cease development. Third-party services can verify anonymous (and public-facing) teams to ensure that there is somebody to contact in an emergency.

Dash 2 Trade has all bases covered in this regard, as SolidProof thoroughly audits its contracts, and Coinsniper verifies the team. 

Look into the roadmap.

Another fundamental metric to look at is the roadmap. A roadmap is designed to show all potential investors what can be expected from the team in the coming months.

If a project doesn’t have a roadmap, many investors often see that as quite concerning. It shows that the team doesn’t care to keep the community informed about the subsequent upcoming developments for the project. 

A roadmap gives confidence to investors that the team is ready to lead the project in a specific direction rather than testing multiple avenues to see which sticks better. A project without a roadmap could end up flip-flopping around and might never achieve its full potential.

The roadmap for Dash 2 Trade is a perfect example of everything a roadmap needs. You can find it on their homepage and it outlines the team’s extensive plans for the project. The roadmap starts in the current quarter (Q4 2022) and continues to Q4 2024, showing a clearly thought-out long-term trajectory. 

Here are some of the significant bits from the roadmap;

Q4 2022

• VC investment to build the dashboard
• Audit
• Release website, whitepaper, and tokenomics.

Q1 2023

• Dashboard Launch and Beta Testing
• CEX and DEX Listings for D2T Token

Q4 2023

• Backtester
• Risk Profiler
• Trading competition launch
• Trader AMA’s

Q2 2024

• Additional on-chain Metrics
• Auto-trader

Q4 2024

• Charting tools
• Wisdom of the crowds
• D2T Social Trading Features
• Community feedback features
• Further CEX listings

Take a Look at the Tokenomics

The last thing to analyze when researching a potential investment is the tokenomics of a project. 

A project could be one of the best concepts in the industry but could quickly fail with extremely poor tokenomics.

For example, if 50% of the tokens are held in the hands of the team, it should raise red flags. One primary example of this was the recent Aptos launch, in which public investors could only purchase 13.5% of all the tokens – the rest were in the hands of the foundation and the team.

Still, brilliant tokenomics doesn’t mean that 100% of all the tokens are available for the public to purchase. Instead, a balance is required between how much the team can reserve for future development and how much is sold to the public.

Dash 2 Trade is a prime example of a project with golden tokenomics. According to its website, 66.5% of the D2T tokens will be sold in a public sale. Then, 15% is held for project growth and development, 5% is used for talent acquisition, and 5% is reserved for the competition pool – all of these come vested linearly over five years. In addition, another 5% will be used for liquidity when D2T is listed on tier-1 exchanges. 

Conclusion

As you can see, a lot goes into making a good crypto investment, starting from the presale stages. First, you must do your own research – with a goal to get to the bottom of the project’s mission and figure out for yourself if you believe the team has the required skills to bring the project to fruition.

We used Dash 2 Trade as an example in this piece because of its brilliant product, extensive track record, and perfect tokenomics. We’ve demonstrated the future potential for this token, and if you’re interested, it’s currently sailing through its presale much faster than expected.