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How to Understand White Papers for Altcoins like DasCoin

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Cryptocurrency is gaining popularity, and while Bitcoin is still leading in the market, people are looking into altcoins to find out if they can get in on the success of “the next Bitcoin.” The term ‘altcoin’ is term derived from “alternative coin” and pertains to any cryptocurrency alternative of Bitcoin. There are hundreds of altcoins currently in the market gaining popularity like DasCoin, Ripple, NEO, and others.

Before participating in the world of altcoins, there are several factors that you need to check. Try to do extensive research on the particular coin that you are interested in. The altcoin website or whitepaper would be a first place to start. Exploring the coin’s online community is a great way to get more information.

The White Paper is the Framework of a Cryptocurrency

In order to truly understand the purpose behind the coin and the relevant information, it is important to read the white paper for the particular cryptocurrency. The white paper describes the project, what they are trying to solve, the team, their accomplishments, a roadmap for the coin, as well as financial and technical details.

Browsing through the entire document can be a hassle, as it can be more than 30 pages long in most cases. With any money-related matter, whether for business or for personal use, it’s important to know where you are putting your money.

Things to Look Out for in a White Paper for Altcoins like DasCoin

1 – The Problem: For example, it may be aimed at decentralizing the money chain or eliminating the third party by doing peer-to-peer transactions.

2 – Is there a need for this project? This is a direct result of the solution being offered and the problem it tries to overcome. There is no reason to have a solution that will not be used by anyone. Look for the importance the project holds for the community.

3 – Token Implementation: This section talks about the actual implementation of the particular coin and how it works to solve the problem. The token’s deployment plan may also come under this section. This section might also provide an answer to when the cryptocurrency will get listed on an exchange.

4 – The Roadmap: There should be clear and concise roadmap presented for the project, like the one found for DasCoin. The project should define the goals that they are trying to meet and when they plan to meet them. If the project is established, you should look as to whether the project has achieved its goals. This roadmap should be closely related to the main objective of the token.

5 – Development Team: Have a look at the development team behind the project. Look for their details on LinkedIn and other social profiles. Take a look at their previous work. Also, take a look at whether the team has worked on any previous projects. Getting all this data is really helpful as you get to know the capacity and experience of the team.

The whitepaper is an important part of any cryptocurrency. It is the document which contains all the information you need in order to make decisions regarding a particular currency. Take the time to read it before you decide on whether a certain coin deserves your support.

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