FIVE TIPS FOR INVESTING IN ICO'S
Right now, ICOs are a dime a dozen and all of them want your money. Sadly, there is a very small, minute percentage of them which are feasible and have a future. The rest are mostly marketing gimmicks that will leave you holding a bag of tokens worth nothing. Which is why I have brought up these 5 tips for investing in initial coin offerings.
1. It’s About All the Team
The first and foremost thing you have to do is look into the team behind the project. This is where most ICOs are filtered out if you are careful. Go to their website, look at their about page, note down names of all developers, executives, and advisors.
2. Scan Bitcointalk Forum
On the forum, there is a lot of fake information, so it is best to go over comments from older, reputable members. Look for questions and how the development team has answered them. Also, be on the lookout for any red flags – terms such as ‘scam’, ‘pre-mine’, ‘mlm’ etc. Going over the ICOs Bitcointalk thread will give you a good descriptions to help you understand the project better.
3. Read the Whitepaper
You have to understand that no project is going to make you rich overnight unless it has actual potential, usability and the team backing it to make the vision a reality. A lot of things come together for investing in an ICO to gain value in the market and a lot of times what you will read will sound too good to be true. Don’t be afraid to pull out if you are not satisfied.
4. Check Out the Community
Community support is key, not only for a successful ICO but growth afterwards. Most ICOs today have community hubs on popular platforms like Reddit, Slack and Telegram. Visit all these communities and observe the conversations.
5. Don’t Risk Everything and Don’t Sell at the First Opportunity
Yes, the ICO may go big, and yes you will regret not going all in, but there is a bigger chance that it might not turn out to be everything it promised – in which case you will have wiped yourself out completely. In this highly volatile market, you cannot afford to risk everything. If you really want to be successful investing in ICOs, you have to live through a rough patch to fight another day.
Finally, the golden rule. Don’t invest what you can’t afford to lose.
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