Crypto Basics

How to Evaluate New Crypto Projects Before Investing?

Learn key strategies to assess new cryptocurrencies effectively. Ensure your investments are informed with our comprehensive guide on crypto evaluation.
Marcus K
5 Minutes
MIN

In the fast-paced world of cryptocurrency, it's essential to thoroughly evaluate a project before investing your hard-earned money. 

With thousands of cryptocurrencies flooding the market, it can be challenging to determine which ones hold promise and which ones are destined to fade away. 

This comprehensive guide will walk you through the process of evaluating cryptocurrencies, so you can make informed investment decisions and maximize your chances of success.

Explore the Project's Website

A cryptocurrency project worth considering should have a well-designed and informative website. Start your evaluation by visiting the project's website and looking for the following key elements:

  • Up-to-date and user-friendly: A reputable project will keep its website current and easy to navigate. Outdated information or a poorly designed site could be a red flag.
  • Team information: Look for details about the project's team members. A transparent and trustworthy project will introduce its team and their qualifications.
  • Token's objective: The website should clearly define the objective of the cryptocurrency token. Does it solve a particular problem or provide a unique value proposition?
  • White paper availability: A white paper is a crucial document that outlines the project's goals, strategies, and tokenomics. Make sure the website provides a downloadable white paper for further analysis.

Dive into the White Paper

The white paper serves as the backbone of a cryptocurrency project. It provides detailed information about the project's vision, utility, and tokenomics.

While some white papers can be technical, understanding the key aspects is essential. Pay attention to these important elements:

  • Problem-solving capabilities: The white paper should clearly state the problem the project aims to solve. Evaluate whether the proposed solution is innovative and feasible.
  • Roadmap: Look for a roadmap that outlines the project's expected stages of growth and development. This will give you an idea of the project's long-term plans and potential milestones.
  • Token utility: Understand how the tokens will be used within the project's ecosystem. Is there a clear utility and demand for the tokens?
  • Token distribution: The white paper should provide details about how tokens will be distributed among investors. Assess if the distribution model is fair and transparent.

Evaluate Social Media and News Presence

A cryptocurrency's social media and news presence can give you valuable insights into its community engagement and overall sentiment. 

Consider the following factors when assessing a project's social media and news presence:

Community engagement: Visit the project's social media channels like Twitter, Discord, or Reddit. Look for active community moderators and meaningful interactions among community members. A strong and engaged community is a positive sign.

News mentions: Determine the project's visibility in the news. Positive mentions and coverage can indicate growing interest and potential investment opportunities. However, be cautious of excessive hype without substance.

Analyze the Project Team and Partnerships

The success of a cryptocurrency project often hinges on the capabilities and experience of its team members. Assess the project team and any partnerships they have established:

Team expertise: Research the background and qualifications of the team members. Look for relevant experience in the blockchain industry or related fields. A team with a strong track record is likelier to deliver on their promises.

Industry partnerships: Check if the project has established partnerships with reputable brands or organizations. These partnerships can provide valuable support and credibility to the project.

Examine Market Metrics

Market metrics provide insights into a cryptocurrency's performance and potential. Consider the following metrics when evaluating a cryptocurrency:

  • Market capitalization: Market capitalization indicates a cryptocurrency's relative size and stability. While a high market cap can be a positive sign, it's also important to consider other factors.
  • Trading volume: Trading volume reflects the level of investor activity in a cryptocurrency. Higher trading volume generally indicates greater liquidity and price stability.
  • Supply metrics: Assess the coin's supply metrics, such as circulating supply and total supply. Understanding the scarcity or abundance of a coin can impact its value and future price potential.
  • Token ratings: Consult platforms that provide ratings for cryptocurrencies, such as Token Metrics or TokenInsight. These ratings can offer insights into the risks and prospects associated with a particular coin.

Note - Remember to conduct thorough research, read financial blogs, stay updated with the latest news and developments, and consider your own financial goals and risk tolerance.

Study Price History

Analyzing a cryptocurrency's price history can provide valuable insights into its volatility and overall trajectory. 

While past performance does not indicate future results, understanding price trends can help you make more informed investment decisions. 

Look for gradual and steady price increases rather than erratic spikes followed by sharp declines, which may indicate pump-and-dump schemes.

Determine Utility and Potential for Adoption

Evaluate the cryptocurrency's utility and its potential for widespread adoption. Consider whether the project solves a real-world problem or offers value within the blockchain ecosystem.

Cryptocurrencies with practical use cases and strong adoption potential are more likely to retain their value over time. Look for projects that have partnerships with established businesses or offer unique features that set them apart from competitors.

By following this comprehensive evaluation guide, you can make more informed decisions when investing in cryptocurrencies.

Cryptocurrency investments can be highly rewarding, but they require careful analysis and due diligence to maximize your chances of success.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other advice, and you should not treat any of the website's content as such.

Token Metrics does not recommend buying, selling, or holding any cryptocurrency. Conduct your due diligence and consult your financial advisor before making investment decisions.

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Token Metrics Team
Token Metrics Team

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From Retail to Institutions: Who’s Driving the Crypto Market in 2025?

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Crypto markets are evolving — and fast. In the early days, retail investors dominated the space. But by 2025, the tides are shifting. Institutional investors, family offices, and algorithmic funds are entering the market at scale. This blog explores the growing divide — and how it’s reshaping opportunities for everyday traders.

The Rise of Institutional Money in Crypto
Over the last year, a new class of investors has emerged: professional firms with deep pockets and long-term horizons. They're no longer just “exploring crypto” — they’re actively deploying capital.

Why now?

  • Regulatory clarity in major jurisdictions
  • Bitcoin ETF approvals and crypto fund launches
  • Better custody, risk management, and analytics tools (including Token Metrics)

What Are Institutions Buying?
Institutions tend to avoid meme coins and hyper-volatility. Instead, they focus on:

  • Layer 1 Infrastructure – Ethereum alternatives like Sui and Avalanche
  • AI Tokens – Leveraging real-world utility and strong narratives
  • DeFi Blue Chips – Projects with consistent TVL and governance upgrades
  • Stable Yield Strategies – On-chain bonds, staking, and real-world asset tokens

Token Metrics has seen a spike in institutional users filtering by Investor Grade and project fundamentals.

Retail Traders Still Dominate One Arena
Retail traders are far from out — they dominate high-volatility narratives:

  • Meme tokens
  • Social coin launches (e.g., Launchcoin)
  • Short-term speculation based on influencer sentiment

Retail’s edge? Speed, risk tolerance, and virality. Many of Token Metrics’ bold signals still originate from this activity before institutions catch on.

Token Metrics Bridging the Divide
What makes Token Metrics powerful in 2025 is its ability to serve both segments:

  • Institutions use it for due diligence, grades, and long-term planning.
  • Retail traders use it for short-term signals, alerts, and narrative tracking.

This dual capability creates a level playing field, where data, not capital, is the edge.

How to Trade Based on Who’s in Control

  1. When institutions lead – expect slower but more sustainable growth. Focus on high Investor Grade tokens.
  2. When retail leads – expect fast-moving pumps and dumps. Use high Trader Grade + bold signals.
  3. Hybrid phase (now) – Use both metrics to balance volatility and long-term conviction.

Market Behavior Patterns to Watch

  • Low volatility + high inflows → Institutional buildup
  • High volume + sudden spikes → Retail-driven narratives
  • Diverging BTC vs. altcoin trends → Mixed sentiment cycles

Conclusion
The crypto market in 2025 is being driven by both the old guard and the new wave. Institutions bring maturity. Retail brings momentum. Smart investors use tools like Token Metrics to read the room — and position themselves accordingly.

Research

Trader vs. Investor Grade: How to Use Both for Smarter Crypto Bets

Token Metrics Team
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Crypto trading success often boils down to timing. But how do you know when to enter — and when to stay long? Token Metrics solves this dilemma with a dual-grade system: Trader Grade and Investor Grade. Each grade serves a different investment goal, and together, they help you make more confident decisions, whether you’re day trading or holding for the long run.

What is the Trader Grade?
The Trader Grade measures short-term momentum. It uses AI to analyze price action, volume trends, technical indicators, and recent sentiment shifts. Scores range from 0 to 100, and a score above 80 signals strong short-term potential.

Use Case:

  • Perfect for swing traders and short-term opportunists.
  • Look for tokens with Trader Grade > 80 for potential breakout trades.
  • Example: Launchcoin had a Trader Grade above 90 before its 35x rally began.

What is the Investor Grade?
The Investor Grade focuses on long-term fundamentals. It’s designed for those who want to hold tokens for months or even years. This grade considers tokenomics, development activity, ecosystem strength, narrative alignment, and long-term price structure.

Use Case:

  • Ideal for long-term portfolio builders.
  • A token with Investor Grade > 80 is a strong candidate for accumulation.
  • AI infrastructure tokens and modular blockchains often rank high here.

Why Use Both?
Most traders fail by only looking at hype or short-term charts. Token Metrics lets you blend data:

  • High Trader Grade + Low Investor Grade? Consider a short-term trade, not a long hold.
  • High Investor Grade + Low Trader Grade? Consider waiting for a better entry point.
  • Both High? Green light for confidence in both entry and long-term performance.

Case Study: Balancing Your Portfolio with Grades
Users can use the dual-grade approach for smarter allocation:

  • 30% of capital to high Trader Grade tokens (short-term plays)
  • 70% to high Investor Grade tokens (long-term holds)

This method helps mitigate risk and improve overall ROI.

Where to Find the Grades
Both grades are displayed prominently across:

  • Token Detail Pages – Real-time grade updates with historical data
  • Market Page Filters – Sort tokens by grade thresholds
  • Portfolio Builder Tool – Automatically selects tokens with strong grades

Tips for Grade-Based Trading

  1. Use Trader Grade for volatile markets or when prices are accelerating.
  2. Use Investor Grade when building positions in strong narratives like AI, DeFi, or infrastructure.
  3. Avoid tokens with both grades below 60 unless you’re making a speculative bet.

Conclusion
Trading without context is gambling. Token Metrics’ Trader and Investor Grades give you a proven framework for assessing both momentum and fundamentals. Whether you’re here for a quick flip or a long-term bet, using the dual-grade system can level up your crypto strategy.

Announcements

Inside the Dashboard: How to Monitor API Key Activity and Monthly Usage in Real Time

Token Metrics Team
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The power of any great API isn’t just in the data it provides — it’s also in the control, visibility, and accountability it gives developers. That’s why the Token Metrics API Dashboard is more than just a place to generate keys — it’s your real-time command center for monitoring API key usage, managing access, and optimizing performance.

In this article, we’ll explore how to use the Token Metrics API Dashboard to stay in control of your app’s data usage, track request history, and ensure your integrations remain secure and efficient.

📍 Where to Find It

To access the dashboard:

  1. Log in to your Token Metrics account.
  2. Go to: https://app.tokenmetrics.com/en/api
  3. Navigate to the API Keys and API Usage sections.

🔐 View and Manage API Keys

The API Keys section gives you a complete overview of every active key associated with your account. For each key, you’ll see:

  • Key Name: Descriptive labels like "Bot A" or "Staging Server"
  • Created Date: When the key was generated
  • Last Used: Timestamp of the most recent request
  • Status: Active or inactive toggle
  • Actions: Trash icon to instantly delete a key

💡 Why It Matters:

  • Spot unused or stale keys that may pose a security risk
  • Instantly disable or delete a key if it’s compromised
  • Monitor which app or environment is making the most requests

📊 Monitor API Usage in Real-Time

In the Usage Dashboard, Token Metrics gives you deep insights into how your API credits are being used.

Key metrics include:

  • API Calls Graph
    A daily call volume chart so you can identify peaks in usage, anomalies, or unexpected surges.

  • Total Monthly API Calls
    Example:
    8,750 / 20,000
    See how much of your monthly quota you’ve used — and when it resets.

  • Remaining API Credits
    Know exactly how many calls you have left in your current cycle.

  • API Call Statistics Table
    Each row includes:

    • Endpoint accessed (e.g., /trader-grade)
    • Timestamp of the request
    • Status code (200 = success, 401 = unauthorized, etc.)
    • Originating IP address
    • Success/failure response

🔄 Debugging & Insights Made Easy

This dashboard doesn’t just monitor—it helps you debug and optimize.

  • Quickly identify if your integration is repeatedly hitting 400 or 403 errors
  • Check whether a specific key is being overused or underused
  • Pinpoint spikes in usage that may indicate unauthorized access
  • See which endpoints are called most often — and consider caching results

⚠️ Avoid Rate Limit Surprises

If you’re on a Basic or Advanced plan, you’ll have a rate limit (e.g., 1 req/min for free users, up to 600 req/min for VIPs). The dashboard helps ensure you stay within your limits — and scale appropriately when needed.

🚀 Build Better with Transparency

In a production environment, visibility into API activity is critical. With Token Metrics, you’re never flying blind. You always know:

  • Which app is using which key
  • How many credits you’re using
  • When to optimize or upgrade

From security to scaling, the Token Metrics API Dashboard gives you the insight you need to build with clarity and control.

👉 Launch Your API Dashboard Now → tokenmetrics.com/api

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