A beginner-friendly process (Tokenomics • Team • Roadmap • On-chain basics) — simple checks that help you avoid hype traps.
Disclaimer: Educational content only. Not financial advice. Crypto markets are risky and losses are possible.
Most people lose money in crypto for one simple reason: they buy first and research later. The goal here isn’t to become a blockchain expert — it’s to do a basic, practical review so you can avoid low-quality projects and obvious risk.
Below is a 30-minute process you can repeat for any token. It’s designed for beginners and written in simple English.
30-minute research map (beginner-proof)
Use this like a timer. If you’re short on time, do Steps 1–4 first — they catch most problems.
Project snapshot dashboard (example)
This is a visual way to summarize what you find. The values below are examples — replace them with real numbers from the project.
Step 1 (0–5 min): Purpose check — can you explain it simply?
Go to the project’s official site and ask one simple question: “What does this project do in one sentence?”
- Clear problem + clear solution
- Explains user benefit (not just tech)
- Shows real product or demo
- Only buzzwords (AI + Web3 + Metaverse)
- Mostly price talk or “next 100x”
- No product, only future promises
If you can’t explain it simply, it’s usually because the project itself isn’t clear — or it’s trying to look advanced to hide the lack of substance.
Step 2 (5–10 min): Team check — who’s behind it?
You’re not looking for “famous founders.” You’re looking for accountability. Real teams leave a trail: profiles, past work, interviews, GitHub contributions, or public history.
- Do founders have real LinkedIn profiles?
- Do the profiles show real history (not created last week)?
- Do they appear in interviews or AMA recordings?
- Fake photos / stock images
- No verifiable names + heavy marketing
- Community questions get deleted
Step 3 (10–17 min): Tokenomics — how the token is designed
Tokenomics is where many projects fail. A project can have good ideas but still collapse if the token design encourages dumping. You want to understand: who owns the supply, when it unlocks, and why the token exists.
Token allocation (example visual)
What you’re looking for: team/investor tokens should have vesting or lockups. Sudden unlocks often cause big dumps.
Vesting timeline (example)
If vesting is unclear, that’s a risk. Here’s how a healthy vesting schedule might look.
Step 4 (17–22 min): Roadmap & execution — do they actually build?
Roadmaps are easy to write. Execution is the hard part. Don’t judge the project by what it plans — judge it by what it has already delivered.
Roadmap progress (example)
If everything is “coming soon” and nothing is shipped, treat it as higher risk.
Step 5 (22–27 min): On-chain basics — holders, liquidity, and wallet risk
You don’t need to be an on-chain analyst. Just do a few basic checks that catch most rugpull-style risks: holder concentration, liquidity status, and unusual transaction patterns.
Holder concentration (example)
If a few wallets hold a huge % of supply, price can crash fast.
Beginner tip: extremely high concentration can be a red flag, especially for new coins.
Liquidity status (simple view)
If liquidity isn’t locked (or lock proof is missing), rug risk is higher.
If a project refuses to share LP details, that’s not “security” — it’s usually hiding something.
Step 6 (27–30 min): Make a simple decision
Don’t overthink. Most beginners get hurt because they “hope” the project is good. Use a simple decision bucket:
Final beginner checklist (copy this)
If you only remember one thing: slow down and complete this checklist before you buy anything.
- Can I explain the project in 1 sentence?
- Is there a real product or demo?
- Is the team accountable (even if not famous)?
- Do updates look consistent (not just marketing)?
- Is token allocation reasonable?
- Are team/investor tokens vested or locked?
- Is liquidity locked with proof?
- Is supply extremely concentrated?
Reminder: Research doesn’t guarantee profit. It simply reduces avoidable mistakes and helps you avoid obvious traps.
FAQ (quick answers)
How do beginners research a crypto project?
Use a repeatable checklist: purpose, team, tokenomics, roadmap progress, and simple on-chain checks like holders and liquidity.
What matters most: tokenomics or hype?
Tokenomics matters more. Hype fades quickly, but bad allocation and unlock schedules can destroy price even if the idea is good.
Is it okay to invest without understanding everything?
It’s better to understand the basics first. If a project is too confusing to explain simply, consider waiting or avoiding it.
