1. Analyze the technology: Research the team, partners, codebase and development progress of the cryptocurrency project. Analyse whether the currency is built with an innovative technology and the vision and mission of the project.
2. Examine the market trends: Evaluate the current and expected market situation in which the cryptocurrency will exist. Check what kind of competitors the cryptocurrency faces and what kind of advantages it offers over them.
3. Assess the community support: Pay attention to the community support for the cryptocurrency. How engaged are the users with the project? Is there a strong online presence with active conversations and contributions?
4. Investigate the partnerships: Examine the partnerships that the project has established. Many projects rely on working relationships with businesses or other tech projects to grow their user base and expand their potential.
5. Assess the liquidity: Determining the liquidity is essential for any asset, including cryptocurrencies. Consider how quickly the currency can be exchanged for cash, and the market depth (number of buy/sell orders), spread (difference between bid and ask price) and volatility of the cryptocurrency.