1. Project fundamentals: You should review the project’s white paper, roadmap, technology, team, and use-case to assess the value of the cryptocurrency.
2. Supply and demand: Analyze market sentiment and use technical analysis to determine whether the supply and demand levels are healthy for investing in the cryptocurrency.
3. Regulatory environment: Investing in cryptocurrencies is largely unregulated and it is important to understand the various regulations that exist or may be proposed in the near future.
4. Risk/reward profile: You should assess the potential return on investment against the risk associated with investing in a particular cryptocurrency.
5. Liquidity: It is important to research how liquid a particular cryptocurrency is so that you can quickly convert it into cash if you need to.
6. Storage: Make sure to check how secure the wallet and storage options are when investing in cryptocurrency since there is a high risk of theft.