How to Research a Crypto Project in Thirty Minutes
You cannot evaluate everything, but half an hour of the right checks eliminates most of what should be eliminated.
Start with supply, because it is decisive and quick
Check circulating supply against total supply. If a small fraction is circulating, large scheduled unlocks are coming and every current holder is buying ahead of guaranteed future selling. Check the unlock schedule — it is usually published, and it explains a great deal of otherwise mysterious underperformance.
Then check holder concentration on a block explorer. If a handful of addresses hold most of the supply, the price is at the discretion of a few people regardless of what anyone else believes. Both checks take five minutes and regularly end the research right there.
Then look for evidence of actual use
Transaction counts and active addresses tell you whether anyone is using the thing, and whether that usage survives when incentive programmes taper. Usage that collapses the moment rewards stop was never usage; it was farming.
Developer activity is the other genuine signal. A public repository with steady commits from multiple contributors is meaningfully different from one that stopped eighteen months ago while marketing continued.
Finally, read the project's own words critically
Read the documentation, not the marketing site. What does it actually claim to do, and does that require the token, or has a token been attached to a product that would work without one? The latter is extremely common.
Then look for the argument against it. Search for criticism specifically. If you cannot find any considered objection to a project, you have not looked — and going in without knowing the strongest case against your position is the definition of an unexamined bet.
The mistakes that cost the most
Treating every notification as requiring a response. An alert is information, not an instruction, and most of them should end with you doing nothing.
Reacting to a move without checking what caused it. A fall that happens while the whole market falls is a different event from a fall that happens alone, and the correct response differs completely. Checking correlation first takes ten seconds and prevents most panic decisions.
Changing the plan mid-move. The level you chose while calm is better than the one you will choose while watching a candle. If you find yourself widening a stop or moving a target during volatility, that is the moment to close the app rather than the moment to act.
Never reviewing. Most people set up project due diligence once and never look at whether it worked. A short monthly review — what fired, what you did, what you would change — compounds faster than any refinement of the setup itself.
Never miss a move in the markets you follow
Set a price or percentage alert once and get a push notification the moment it triggers — free, with quiet hours so nothing wakes you at 3am.
- Fires about a second after the price hits
- Runs on our servers, so it reaches you with the app closed
- Free for 3 alerts — no card, no account
Download the app for real-time notifications
Frequently asked questions
Does this apply to stocks and commodities too?
The method does; the numbers do not. Levels, sizing and deciding in advance work identically across asset classes, but thresholds must be recalibrated — equities gap around earnings and only move during market hours, commodities trend more slowly, and currency pairs move a fraction of what crypto does, so a 1% move there is significant.
Set an alert for this: crypto price alerts, or every market and alert type. Choosing an app? How the alert apps compare, from their own pricing pages.
Keep reading
What Is Leverage? Definition, Example and Liquidation Math
Leverage is borrowed exposure that multiplies gains and losses. A worked example, where liquidation sits at 5x…
Trading basicsWhat Is Slippage? Definition, Example and How to Reduce It
Slippage is the gap between the price you expected and the price you got. Order-book example, DEX slippage tol…
Trading basicsWhat Is Market Cap? Formula, Example and Why Price Misleads
Market cap is price times circulating supply, the fair way to compare coins with different token counts. Formu…
Trading basicsAre Crypto Airdrops Worth Chasing?
Some have paid substantially. Most have not, and the ones that cost people money are usually not airdrops at a…
