I watched a number of over enthusiastic to over cautious YouTube videos of investors and traders in the Cryptocurrencies.
Below is a checklist I came up with to go through before investing in a new alt Cryptocurrency.
Find out if it is a project looking to solve problems not being solved by others.
Go through the white paper and have a basic understanding of what is the timeline and exact technologies they are using. And if they are clear about their objectives and short term goals.
A breakthrough or innovation which gives it distinct advantage over existing coins.
If the currency has some sort of deal with already established multinational giants.
Has use for an industry with great money minting potential Banking, Retail, Social network, Operations, E-commerce etc.
Targets a section which is vulnerable to tech innovation with a consumer base ready for adoption.
Diversify, so even if all your bets do not yield high profits some which do are able to make up for the loss in others.
Have star computer scientists, industry veterans, financial bankers and investors behind the project.
Undervalued currencies: if all the above factors are true and there has not been any setback to the coin, buy when they are off there highs during dips.
Do not invest your retirement fund/ rent money.