Start Smart FA Series - Lesson 12: Crypto Project Due Diligence Checklist, A Full Fundamental Analysis

Key Points

• A full crypto fundamental analysis is a repeatable workflow, not a one-off opinion.
• Start with the use case and the user, then verify whether anything real exists beyond the pitch.
• Combine multiple proof types: product evidence, tokenomics, team credibility, adoption, and risk.
• Most mistakes come from skipping steps, especially supply and unlocks, incentives, and regulatory surface area.
• A crypto project due diligence checklist keeps every altcoin judged consistently, even when excitement is high.
• You do not need perfect information… you need a process that filters weak projects quickly.
• If any terms feel unfamiliar, use the Crypto Glossary for quick definitions, then return to this lesson.

Quick Answer

To do fundamental analysis on a crypto project, define the real-world use case and target user, verify the product and documentation, assess tokenomics and supply risks, evaluate the team and incentives, check adoption evidence, review security and regulatory risks, then compare competitors. Use a crypto project due diligence checklist so you can repeat the same process across every altcoin.

Where This Lesson Fits

Lessons 1 to 11 broke fundamental analysis into parts: market cap, tokenomics, whitepapers, team, partnerships, on-chain signals, adoption, regulation, community, and competitors. Lesson 12 combines everything into one workflow you can use on any altcoin.

This lesson is part of the Fundamental Analysis for Beginners series. For the full lesson map and all supporting guides, visit the Fundamental Analysis hub.

The Full Fundamental Analysis Workflow

Think of this as two passes:

• Pass one (fast filter): eliminate weak projects quickly
• Pass two (deep dive): only do this if the project survives the filter

Once you’ve run this a few times, Pass one can take under an hour.

Pass One, The Fast Filter

Step 1: Define The Use Case And The User

Write one sentence for each:

• Use case: what problem is being solved?
• User: who is it for?
• Why crypto: why is a blockchain needed instead of a normal system?

If you cannot answer these clearly, pause here.

Step 2: Verify The Product Exists

Look for evidence of shipping, not promises:

• Working product: can it be used today?
• Docs: do they match what is live?
• Recent updates: does progress show up publicly?

Common trap: confusing a roadmap for a product.

Step 3: Read The Whitepaper With A Purpose

You are extracting answers, not enjoying a story:

• What is being built?
• How does it work?
• What is the token for?
• What trade-offs and risks are admitted?

If the whitepaper cannot explain the token’s job, downgrade it.

Step 4: Check Market Cap And Supply Reality

Market cap is a surface check… supply is where risk hides.

Confirm:

• Circulating supply
• Total supply and max supply
• Unlock schedule and emissions
• Team and investor allocations

If future supply is heavy, your risk picture changes immediately.

Step 5: Evaluate The Team And Accountability

You are looking for execution and responsibility:

• Clear roles: who owns delivery and security?
• Proof of shipping: verifiable outputs
• Consistency: claims match public evidence
• Behaviour under pressure: calm, transparent communication

If it relies on borrowed credibility while avoiding accountability, downgrade it.

Step 6: Verify Partnerships And Backers Properly

Treat partnerships and investors as claims:

• Both sides confirm it (not one-sided announcements)
• Scope is clear: integration, commercial, programme, or marketing
• Proof exists: something changed in product, docs, or distribution

If it cannot be verified from the other side, ignore it.

Step 7: Look For Adoption Evidence That Matches The Use Case

Adoption means repeat usage with staying power.

Pick metrics that match the category:

• Trading: sustained fees and volume that persists
• Payments: stablecoin liquidity and repeated transfer behaviour
• Infrastructure: integrations, developer usage, recurring demand

Common trap: incentives-led spikes that fade when rewards drop.

If you want Bitcoin-specific on-chain indicators, use the separate Bitcoin on-chain hub instead.

Step 8: Identify Security And Operational Risk

You are not auditing… you are checking obvious fragilities:

• Audits: what has been reviewed, by whom?
• Upgrade controls: who can change critical contracts?
• Bridge exposure: if liquidity depends on bridging, how is it secured?
• Incident history: what broke before, and how did the team respond?

If the project claims perfection and never discusses risk, that is information.

Step 9: Evaluate Regulatory Surface Area

Regulatory risk becomes market access risk.

Check:

• Jurisdictions: where it operates, where it restricts access
• High sensitivity features: privacy tooling, leveraged products, stablecoin rails, custody
• Disclosure maturity: terms, risk notices, responsible language

Common trap: assuming a token is safe because it is listed today.

Step 10: Compare Competitors

Ask whether the project is replaceable.

Compare:

• Direct competitors: same user problem
• Edge: measurable advantage, not a slogan
• Distribution: how users arrive without incentives
• Liquidity and network effects: where relevant
• Developer gravity: builder ecosystem proof
• Token value capture: what value the token actually captures

If the edge is only narrative, it is fragile.

Pass Two, The Deep Dive

If a project passes pass one, deepen your work:

• Validate claims across multiple sources
• Look for inconsistencies between docs, tokenomics, and behaviour
• Track progress over time rather than relying on one research session
• Use case studies to compare the same project at two different points in time

The One Page Crypto Project Due Diligence Checklist

Here is the checklist template to reuse on any project:

Project basics
✅ Project name and category
✅ Use case and target user
✅ What is live today
✅ Token purpose (one sentence)

Supply and tokenomics
✅ Circulating / total / max supply
✅ Unlocks and emissions
✅ Largest supply risk

Team and credibility
✅ Who owns delivery and security
✅ Proof of shipping
✅ Accountability and communication quality

Partnerships and backers
✅ Claims verified from both sides
✅ What changed because of each relationship

Adoption
✅ Metrics that match the use case
✅ Evidence of repeat usage
✅ Evidence of paid usage or persistent liquidity

Security and operational risk
✅ Audit coverage and key risks
✅ Upgrade control and bridge risk
✅ Incident history and response quality

Regulatory risk
✅ Jurisdictions served and restricted
✅ High sensitivity features, if any
✅ Biggest regulatory event that could break adoption

Competitors
✅ Direct competitors
✅ Measurable edge
✅ Why users choose it today
✅ What must be true for it to win

Conclusion
✅ Best reason to be interested
✅ Biggest reason to avoid
✅ What you need to see next

Common Traps When Putting It All Together

• Skipping tokenomics and unlocks because the product sounds exciting
• Overweighting partnerships without verifying scope
• Mistaking incentives-led usage for adoption
• Ignoring security and upgrade control risk because the narrative is strong
• Comparing projects in the wrong category, which creates false conclusions

A checklist prevents most of these mistakes.

Mini FAQs

How to do fundamental analysis on crypto?
Define the use case and user, verify the product and docs, assess tokenomics and supply, evaluate the team, check adoption proof, review risks, then compare competitors.

What is a crypto project due diligence checklist?
A repeatable set of checks that covers product, tokenomics, team, adoption, risk, regulation, and competitors so you can judge projects consistently.

How to evaluate a crypto project fundamentals?
Focus on what exists today, what the token does, how supply works, whether users return, and what risks could stop adoption or listings.

What should beginners focus on first?
Start with use case clarity, supply reality, and evidence of shipping. Those three filters remove most weak projects quickly.

Why do good projects still fail?
Execution risk, poor incentives, security incidents, regulatory issues, and weak distribution can break adoption even if the idea is strong.

Next Lesson

In Lesson 13 you will learn how to use case studies for practical application, including how to run the same checklist on real projects and compare outcomes over time.

For the full lesson map and all supporting guides, visit the Fundamental Analysis hub.

If this lesson helped you build a repeatable crypto project due diligence checklist, Alpha Insider is where the same workflow is applied consistently, with examples that show what strong research looks like in practice.

Alpha Insider members get:

➡️ Kairos timing windows to plan entries before the crowd moves
➡️ A full DCA Targets page with levels mapped for this cycle
➡️ Exclusive member videos breaking down charts in clear, simple terms
➡️ A private Telegram community where conviction is shared daily

A repeatable process… not a lucky pick.

Legal And Risk Notice

This content is for education and information only and should not be considered financial, legal, or tax advice. Crypto assets are volatile and high risk. Regulations change and vary by jurisdiction. You are responsible for your own research and decisions, and you should consider seeking independent professional advice where appropriate.