5 Tips for Choosing an ICO Right for Investing

how to store cryptocurrency Initial Coin Offering (ICO) is a method of fundraising in the form of selling the crypto-currencies that have short-term liquidity to investors. Recently, the phenomenon of ICO is gaining more and more popularity as a fundraising strategy because it makes it possible for both small and large investors to invest in interesting projects and then support them. Although it is indeed possible at present to capture an impressive amount of projects started with the help of ICO, the ICO is a relatively risky way of investing: conservative investors assume 99% of projects with ICO that they would fail. In fact, the opposite is the case. In this article, the reader will discover a bunch of advice that will guide you in examining.

 

1.The project choice must be conditioned by the fact that you can fully understand and understand the idea. In the first line, one should choose from a plethora of projects the project in which one would be willing to invest. Apart from the fact that the project should be of great interest to you, you also need to understand the concept of the project, among other things with regard to charity – and in relation to today. Therefore, it is recommended to invest only in the projects which you can fully understand the concept.

2. Position paper .After the project has been selected, it is very important to deal with the corresponding position paper, which is called “white paper” in English. A position paper represents a kind of business plan of the project, which lists the concept, necessary funds, the number of coins the developers would leave, deadlines for the fundraising campaign, information about the team and so on. It is recommended that you take a serious look at the position paper so that you can better prepare yourself in case you finally decide to invest in the project. In addition, check the authenticity of the information given in the whitepaper. The first things that can make you suspect is the fact that you get the feeling

3. Viewing the information related to the project team. It is necessary to learn as much as possible about the project team: through developers and through the advisory board. It is recommended to pay close attention to the professional experience of the developers who have gathered the cryptocurrency stakeholders and the nature of the projects they have been involved in. You can screen your profiles on LinkedIn, GitHub or Twitter. Of course, it is considered a very good sign when the team members can ever present a successful participation in startup projects. Check the relevant information in the profiles by using such sources as SimilarWeb, Boost VC or com use: for example, the proven success of the company, the traffic of the website, the quality of the team that has gathered the developers for cooperation.

In addition, you will be looking at the profiles of the project’s advisers: if you discover familiar names underneath, you can take that as a good sign. Make sure the team has provided all the contact information: via Slack, Telegram us-w. Otherwise it would be considered a doubtful warning signal.

 

4. Initiate your own investigation. Once you have learned about the project concept and the responsible team and have made sure of their seriousness, it is advisable to take a look at the corresponding forums and the news including comments (ANN). The most popular sources where ANNs are released are org and reddit, or else slak. Read carefully all the Timeline messages, because the answers to your questions and even your questions could be there. It is important to pay more attention to the reports of official developers. You can also send them private messages to check the frequency of their feedback. If the developers deviate from their questions or refuse any kind of cooperation, then it is highly suspicious.

Keep in mind that dealing with the ads and the forums in which the project is discussed can be very helpful and can play a crucial role in evaluating token security. At the beginning you should rather be too skeptical: the faster you research the background, the greater the likelihood that you will not lose your money when participating in projects that are doomed to failure. When evaluating the token, you should make sure that it is able to handle the tasks listed in the whitepaper. The easiest way to do this is to search for the project name plus the signal words “scam”, “hack”, “petty criminal” and so on. at на BitcoinTalk or at another resource.

 

5. Do not put everything you have at stake on the game.Although ICO is always a believer in fundraising, keep in mind that it still carries a high level of risk. Evaluate the project and your financial resources that you want to invest in the project realistically. As with traditional investment methods, it is advisable not to invest more than the amount they could spare. In addition, one should be aware of the risks. Not just to invest in a cryptocurrency: with new changes in the crypto market, the creation of the Ethereum Enterprise Alliance, significant cryptocurrencies are being accepted by such market leaders as Microsoft and Intel. It would be a good idea to do an advanced search for trusted cryptocurrencies, to pick five best ones,

Although ICO is, at first glance, a very quick and easy way of investing and raising capital, one must not forget that in reality it has many pitfalls and its test procedure, whether due to reliability or legitimacy of the project, the tokens and the Teams could take a lot of time. If you have decided to invest in the ICO, the first thing to do is to find out as much as possible about the advantages and disadvantages before initiating the direct investment. The listed steps can help you save your own resources and find your own – indeed reliable and trustworthy – project.

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