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A quick tour of the crypto world, or what to watch out for when investing in cryptocurrencies. WARNING!

Investing in crypto projects may seem very attractive at first glance, but we must not forget that this is the riskiest asset class in the world. Some cryptocurrencies can grow by hundreds of percent overnight, but they can just as quickly fall to zero. To help you protect your hard-earned money and avoid common beginner mistakes, we have compiled a list of 5 key areas that every project should meet!

1. Website and transparency

  • Every project should have a modern and easy-to-use website that does not trigger antivirus warnings about a breach of security. Outdated and unupdated information can be the first warning sign.
  • E.g. ✅ www.maitcoin.com/cs
  • Every project should have publicly available information about team members, their experience, and qualifications, for example through external links such as LinkedIn. All individuals should also be easy to find on the internet.
  • E.g. ✅ maitreja.org/cs/o-nas
  • Every project should clearly state on its website what its cryptocurrency is used for, what problems it solves, and what the current value of the token is.
  • E.g. ✅ mait.me/token#getmait
  • Every project should have a white paper, which is a business plan in the field of cryptocurrencies. This key document describes the goals, strategies, and economics of the project in detail and should be easily available for download or reading.
  • E.g. ✅ www.maitcoin.com/blog/whitepaper

2. Whitepaper and technology

  • Every project should clearly define the problem it is trying to solve or has already successfully solved. At the same time, it is important to consider whether this goal is sufficiently innovative and achievable.
  • E.g. ✅ www.maitcoin.com/blog/whitepaper
  • Every project should have a clearly defined plan, a so-called roadmap, which describes in detail the individual phases of growth and development. It thus provides an overview of long-term goals and key milestones.
  • E.g. ✅ www.maitcoin.com/blog/whitepaper
  • Each project should clearly state the usability of the token so that it is clear how it is or will be used in the project ecosystem. At the same time, it is important to consider whether its use is sufficient to support demand and growth in the value of the token.
  • E.g. ✅ www.maitcoin.com/blog/whitepaper
  • Each project should have a carefully thought-out distribution of tokens to the market. The white paper should clearly explain how and when the tokens will be released and for what purposes the individual parts will be allocated. Consider whether you find this model fair and sufficiently transparent.
  • E.g. ✅ www.maitcoin.com/blog/whitepaper

3. Social media and community

4. Other important information

  • Each project should be listed either on a decentralized exchange (e.g., Uniswap) or a centralized exchange (e.g., Binance, Kraken, Coinbase, Bybit, and others) to ensure that you will be able to sell the tokens you purchase later. Pay attention to liquidity—without it, you won't be able to sell your tokens. Liquidity determines how easily tokens can be bought and sold without significantly affecting their price. Look for projects with high liquidity and always check that you will have somewhere to sell your tokens.
  • For example, ✅ https://app.uniswap.org/explore/pools/ethereum/0x315A14AdDD9be1f944e4fbF7e0ce376d23E1613c
  • Every project should have a clearly defined number of tokens or a predefined plan for issuing them. Tokens without a fixed maximum amount are not necessarily bad, but it is important to realize that the development team can "print" new tokens at any time – similar to the Czech National Bank printing new Masaryk banknotes. Therefore, focus on tokens with a fixed and finite amount, such as Bitcoin.
  • For example, ✅ www.maitcoin.com/cs
  • Every project faces some form of competition. If you come across a project that claims to be unique and unrivaled in its field, be cautious. Thoroughly analyze the demand for the product or service it offers and verify that it really has no competition – SWOT analysis. Projects with a unique solution or significant competitive advantage have a better chance of long-term success.
  • E.g. ✅ www.maitcoin.com/blog/whitepaper
  • Every project should be checked (its smart contracts) by an independent external auditing firm specializing in cryptocurrencies (CerTik, Ackee, PeckShield, Quantstamp, etc.). This ensures maximum security and credibility for the entire project. Carefully consider whether you really want to invest in projects that have not yet undergone any official review.
  • For example, ✅ mait.me/token
  • Every project should already have some kind of product, even if only in the initial phase. As they say, promises are cheap, but it is important to see that the development teams are actually working and that their efforts are already showing visible results. Projects that offer functional solutions, applications, or anything you can try out and start using are one of the best signals you can get. The most valuable ones are those in which you are not only an investor but also an active user—but there are only a handful of those.
  • For example, ✅ mait.me/token
  • Every project should have established partnerships, because without external support it is difficult, especially in the early stages. Research the project's partners, verify their credibility, and conduct an in-depth analysis, just as you would with any other company. Find out if the information provided is true and if these are real companies. You can also confirm the legitimacy of the project by contacting the partners directly or, if possible, visiting the address provided.
  • E.g. ✅ www.maitcoin.com/blog/whitepaper

5. Market metrics (explained using Bitcoin)

Kapitalizace

  • Market capitalization (market cap)
  • Market capitalization shows the relative size and stability of a cryptocurrency. Higher capitalization can be a positive signal, but it is important to consider other factors as well. It represents the total market value of tokens in circulation, similar to stocks.
  • The calculation is simple: Market cap = Current price × Number of tokens in circulation.
  • Trading volume
  • This reflects investor activity. Higher volume usually means better liquidity and less price volatility. It indicates the value of tokens traded in the last 24 hours.
  • Supply metrics and FDV
  • Circulating, total, and maximum supply of tokens. Circulating supply represents the number of tokens that have already been released for purchase and sale and directly affects the total market capitalization. Total supply includes all tokens mined or created to date, while maximum supply determines the final number of tokens that will ever exist. If the circulating supply is significantly less than the maximum, a gradual release of new tokens can be expected, which may lead to a decrease in market price due to lower scarcity. FDV represents the market capitalization if all tokens were in circulation.
  • Liquidity, volume/market cap
  • A daily liquidity indicator. The higher this ratio, the more liquid the cryptocurrency is, making it easier to buy and sell on the exchange at a price close to its current value. Cryptocurrencies with a low ratio are less liquid, which can mean greater price fluctuations and a less stable market.

Investing in cryptocurrencies requires careful consideration of many factors, just like any other financial asset. By using this guide, you can reduce some of the risks and make more informed decisions. Always remember that the cryptocurrency market is dynamic and volatile, so it is important to keep a close eye on its development.

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