Step-by-step framework to evaluate altcoins: on-chain data, tokenomics, team vetting & risk management. Used by pros to spot winners before the crowd.
What Are Altcoins?
Altcoins refer to all cryptocurrencies other than Bitcoin, including Ethereum, SOL, BNB, and thousands of smaller tokens.
How to Evaluate Altcoins
Fundamental Analysis
- Team Background: Research the development team's experience
- Whitepaper: Understand the problem and technical solution
- Tokenomics: Supply, distribution, unlock schedule
- Community Activity: GitHub commits, community size
On-Chain Data
- Active Addresses: Reflects actual user count
- TVL: DeFi project capital scale
- Trading Volume: Market attention and liquidity
Investment Strategies
Diversify: Don't go all-in on a single altcoin
Major First: 70% BTC/ETH, 30% altcoins
Set Stop-Loss: Altcoins are volatile
Scale In: Avoid one-time heavy positions
Risk Warning
- Altcoin liquidity may be insufficient
- Projects may be abandoned
- Small coins are easily manipulated
- DYOR (Do Your Own Research)