📘 How to evaluate an altcoin (without falling for the hype)
Before buying an altcoin, it is advisable to ask yourself some basic questions.
The price alone does not say anything if you do not understand what is behind it.
1️⃣ What problem does it solve
An altcoin must have a clear use.
📌 Examples:
ETH: smart contracts and decentralized applications
LINK: external data for blockchains
ZIL: scalability via sharding
👉 If you don't know what it's for, that's a red flag.
2️⃣ Activity and adoption
Look for:
developers active
projects built on top
real use of the network
📌 Example:
SOL has high activity in DeFi and memecoins, which creates demand for the token.
3️⃣ Tokenomics
It matters how many tokens exist and how they are released.
📌 Examples:
BTC: limited supply → scarcity
Tokens with high inflation: constant selling pressure
👉 It's not just about the price, it's about the number of tokens circulating.
4️⃣ Price behavior
See how it reacts in different contexts.
📌 Example:
ETH falls less than memecoins during corrections
DOGE rises and falls almost solely based on sentiment
5️⃣ Risk vs reward
Altcoins can rise a lot… or fall hard.
📌 Simple rule:
Greater promise of profit = greater risk.
🎯 Final thought
A good altcoin is not the one that rises the most today, but the one that makes sense tomorrow.
👉 Evaluating reduces risk, it does not guarantee profits.
