On the contrary, private blockchains are more suited for companies, and they might be faster and more privacy-focused, even if more centralized. Can the blockchain handle an increasing number of transactions without compromising speed or cost, for example, with layer 2 scaling solutions? Another important factor to be analyzed when evaluating the potential of technology is scalability and interoperability. There are various methods by which blockchain networks achieve consensus, such as Proof of Work (PoW), like Bitcoin; Proof of Stake (PoS), like Solana, or other minor consensus protocols, such as Delegated Proof of Stake (DPos), for example.

Fundamental and technical analysis.

Crypto trading can be a profitable job, and in the past few years, a lot of people have reached financial freedom thanks to cryptocurrencies. However, there are various risks, and only a small percentage of traders are consistently profitable over long periods. Most traders are not profitable for various reasons, including lack of: knowledge, skills, a clear trading strategy, or emotional control. While technical analysis focuses on market data and technical indicators to try to predict short-term movements, fundamental analysis focuses on the underlying value of the project and its growth potential by analyzing various economic factors, such as the underlying technology, revenue incomes, the team, the competitors, and more. Most importantly, they do not analyze projects carefully before investing. There are two main ways to analyze crypto projects: Fundamental and technical analysis. But why are most traders not profitable?

Before investing in the project, research and answer the following questions: What problem does the project aim to solve? The token economy is the economic model that governs a crypto project, determining the utility, value, and long-term sustainability of the token. How do its solutions differ from existing ones? A successful crypto project must create value by solving demanding problems. Many financial experts argue the US dollar will collapse because its supply is unlimited and not managed in a transparent way. In this way, it can generate a return by providing useful solutions that are valuable, consequently setting the basis for long-term sustainable growth. The first element of the token economy is the supply: the total circulating supply of a token determines the scarcity and the potential value.

Conversely, cryptocurrencies usually have a capped supply, like Bitcoin, and it means the tokens can be seen as deflationary, as their scarcity relative to fiat money increases over time, driving up the price. Another important factor you must verify in the token economy is the distribution model. How are tokens distributed initially? Is there a vesting period? Always check the total and circulating supply of a token to understand its long-term dynamics and growth potential.