How We Review Cryptocurrencies

ReadWrite prides itself on impartiality, accuracy, and transparency, particularly when addressing complex and high-risk assets like cryptocurrencies.

We aim to equip readers with the knowledge needed to make informed decisions in the ever-evolving cryptocurrency landscape, covering everything from initial coin offerings and decentralized finance to top cryptocurrencies to consider.

Continue reading to learn how we review cryptocurrencies at ReadWrite.

• Legitimacy of the Project

The sheer number of cryptocurrencies created in recent years makes it impossible to keep track, and most should be avoided due to safety concerns or lack of purpose.

It’s essential to choose a legitimate cryptocurrency, and we recommend reliable, trustworthy operators. At a minimum, projects should have their smart contracts audited by a reputable firm before launch to protect investors from common scams like rug pulls.

• Project Team

Anyone can now create a cryptocurrency or crypto asset, with the process becoming significantly easier in recent years. Founders no longer need blockchain development skills, programming knowledge, or expertise in smart contracts.

Instead, plug-and-play platforms allow projects to launch in minutes. Given this, we prioritize evaluating the core team, particularly their experience in the blockchain space.

Ideally, teams should have a proven track record in their field and a solid public reputation. However, many cryptocurrencies, including billion-dollar projects like Shiba Inu, FLOKI, and Bitcoin, launch with anonymous teams. This lack of accountability is factored into our cryptocurrency ratings as a potential risk.

• Price Potential

ReadWrite also assesses the price potential when reviewing cryptocurrencies. After all, this is the primary goal when investing in a crypto project. The upside potential is determined by multiple factors, including the market capitalization.

For example, some investors are more risk-averse than others. They prefer established and large-cap cryptocurrencies like Bitcoin, Ethereum, and BNB. These cryptocurrencies offer a more modest price upside when compared to new projects with a smaller market capitalization.

• Liquidity and Trading Volume

Beginners often overlook liquidity and trading volume when evaluating cryptocurrencies. Liquidity refers to how easily a cryptocurrency can be traded, determined by the amount of capital in the market, while volume measures how much is traded over a specific period.

These metrics are crucial when researching digital currencies. For example, large-cap projects like Bitcoin have no issues with liquidity or trading volume—selling $10,000 worth of Bitcoin won’t affect the market. However, low liquidity can make it difficult to exit positions in smaller projects, potentially crashing the price when selling significant amounts.

For instance, selling $10,000 in a cryptocurrency with a $1 million market capitalization may dramatically drop its price, forcing the investor to accept a lower valuation to complete the sale.

• Use Cases

ReadWrite’s cryptocurrency team prefers projects with at least one use case. Put simply, this means the native cryptocurrency token is purchased for reasons other than just financial speculation.

• For example, ETH is required when deploying smart contracts on the Ethereum blockchain. Without ETH, leading Ethereum projects like Uniswap, Decentraland, and Aave wouldn’t be able to function.
• Similarly, banks and other financial institutions need XRP when using the Ripple network. This digital currency enables parties to send and receive cross-border payments at incredibly low fees.

That said, one of the fastest-growing and most relevant cryptocurrency niches, meme coins, is notorious for not having any use cases. The ReadWrite team still considers these projects, but is clear to outline the added risks.

• Community and Support

The best cryptocurrencies tend to have large, active communities, often with millions of unique token holders, which helps create a long-term ecosystem of loyal supporters. At ReadWrite, we assess the size and strength of these communities in several ways.

For instance, we examine the project’s follower count on social media platforms like X, Facebook, Instagram, and TikTok. We also evaluate engagement levels, including the average number of views, comments, and shares on posts.

High engagement indicates that the community is made up of real people rather than automated bots. The ReadWrite team also monitors platforms like Telegram and Discord, where communities can discuss and share ideas in real time, often interacting directly with the support team.

Importantly, large, engaged communities serve as free marketing channels for the project, with holders actively promoting their cryptocurrency investments in their spare time.

• Roadmap Objectives

Credible cryptocurrency projects have an easily accessible roadmap. This is usually displayed on the project’s website and/or whitepaper. Roadmaps are a timeline of objectives the project aims to achieve.

This could include development goals, such as releasing its mainnet protocol, or performance metrics, like hitting 1 million followers on X or surpassing a $1 billion market capitalization. Either way, projects must hit their roadmap objectives on time. This instills confidence in existing and potential new investors.

Conversely, missing roadmap deadlines almost always has a detrimental impact on the cryptocurrency’s value. For example, in 2024, Uniswap announced a delay to its governance vote. The vote proposed a revenue share for UNI holders. The delay resulted in a temporary sell-off.

• Price History

ReadWrite places significant emphasis on price history when reviewing and rating cryptocurrencies. While past performance doesn’t predict future outcomes, it offers insights into how cryptocurrencies behave during key market cycles.

For instance, during the 2020-2021 bull market, many cryptocurrencies hit new all-time highs—Bitcoin surged from under $5,000 in 2020 to over $68,000 in 2021, with Ethereum, BNB, and Dogecoin experiencing even larger gains. However, not all cryptocurrencies followed this trend; XRP, for example, failed to surpass its 2018 peak of $3.84.

We also analyze price performance during bearish markets. If the broader market is down 40%, but a project grows by 150%, it signals not only outperformance but also resilience during tough market conditions.

• Market Sentiment

Broader market sentiment plays a crucial role in driving trends, similar to traditional assets like stocks and gold. Positive sentiment can fuel extended bull runs, hype, and FOMO, particularly in specific cryptocurrency ecosystems.

For instance, meme coins on the Solana blockchain saw explosive growth in early 2024, with coins like Bonk, dogwifhat, and BOOK OF MEME—despite lacking use cases—surging due to large communities. Similarly, cryptocurrencies tied to the artificial intelligence (AI) narrative enjoyed sustained growth throughout 2023.

• Compliance

ReadWrite also evaluates compliance when exploring cryptocurrencies. This ensures readers only consider projects that meet all relevant legal and regulatory requirements.

For example, the U.S. Securities and Exchange Commission (SEC) has issued substantial fines for non-compliant projects. This includes an $18.5 million fine issued to Telegram for its 2020 ICO. Fortunately for ICO investors, the $1.2 billion raised was returned in full.

However, this won’t always be the case — particularly when investing in cryptocurrencies with anonymous teams. It’s important to remember that for many cryptocurrencies, you won’t have any financial protection if things go sideways.

• Risks of Investment

All cryptocurrency investments carry inherent risk, though the level of risk can vary significantly between projects.

For example, Bitcoin and Ethereum are considered among the least risky due to their established status, mega-cap valuations, millions of token holders, and proven use cases. As market capitalization decreases, the investment risks rise, with smaller projects—such as those valued under $10 million—being particularly prone to extreme volatility from large trades.

The same applies to newer cryptocurrencies with limited track records. However, higher risk often comes with greater upside potential, aligning with the traditional ‘risk vs reward’ principle.

• Ethics

ReadWrite also evaluates ethics when reviewing cryptocurrencies. The research team avoids projects with a discrimination ethos, especially those negatively linked to race, gender, and religion. We also evaluate how projects respect privacy and holder rights.

What’s more, we never consider cryptocurrencies that make misleading claims. For instance, those promising investors that they’ll make 50x returns. Projects themselves should be upfront about the risks of investing and the lack of intrinsic value when buying their tokens.

How We Keep Our Reviews Current and Accurate

The cryptocurrency market is a rapidly evolving industry. What’s relevant today might be redundant tomorrow. This is why ReadWrite regularly updates its cryptocurrency reviews and analysis to reflect current market trends and sentiment. For example, we mentioned that Solana meme coins witnessed a bull run in 2024. However, the meme coin markets often shift to other popular ecosystems such as Base and TON.

Ultimately, the ReadWrite team works around the clock to ensure readers stay informed.

Why Reviewing Cryptocurrencies is so Important

Cryptocurrencies are part of one of the fastest-growing markets in history. Investing in them today is comparable to investing in the internet or mobile phones in the 1990s, offering the opportunity to get involved in revolutionary technology before it fully matures.

While the total value of cryptocurrencies exceeds $2 trillion, only a small fraction of the global population owns digital assets, suggesting significant future growth, especially as inflation and poor central bank policies persist. However, navigating the crypto market as a beginner can be daunting, with millions of options and many scams.

Additionally, crypto assets are highly volatile, driven largely by speculation and hype, making it difficult to identify the next big project. This is why thorough cryptocurrency reviews are essential at ReadWrite, helping readers make informed decisions.