What to know before investing in an ICO? [Answered]
Investing in ICO assuming the least possible risks. Below I will briefly explain each tip that must be taken into account when investing in a cryptocurrency or ICO:
What To Know Before Investing In An ICO
The team is fundamental when it comes to selecting ICO from the ICO List. They are the ones who will move and develop the project. If the project is of quality, but the team is not, it is more likely to fall than a project that has no quality with a team that does.
Popular Member In The Sector
For many, there is an expert member in Blockchain plus another expert in the field in which the ICO is developed, such as real state, end tech, social network. I think it is a crucial point for the success of any idea, project, company or startup.
Known Partners, Advisors And Investors
Knowing the partners or advisors are recognized much better, although it is not something important. But it is worth taking it into account.
Project achievable, scalable and realistic.
The project must have these characteristics in order to achieve medium-long-term growth. It has to be realistic but with news or some differentiation regarding how the problem is currently solved. Do not invest in an ICO that promises to be immortal.
Roadmap And WhitePaper
See your timeline. What milestones do you have? Is it realistic? Reachable? Are there agreements with partners? With exchanges? When do you get the Beta? And the final product?
Ask yourself these questions and try to answer them with your roadmap and whitepaper, if you cannot, run away.
Supply Or Quantity Of Tokens
Some friends have told me that they have bought Ripple (XMR) because it is cheap, about $ 0.18, thinking that if it reaches $1000 they would be millionaires, this does not make any sense. The price of the low tokens does not mean that the value of the cryptocurrency is low. Since it is not the same as the cryptocurrency has a supply of 100,000,000,000 than 1,000,000 tokens.
In this case the cryptocurrency and worth Ten times the X. And that if we look at the price of the tokens of the A is worth 100 times more than the tokens of the cryptocurrency Y.
If you still do not clarify, write a comment and we will get you out of doubt.
An active and faithful community is fundamental for the success of the project, a community that bets for the ICO can get and force the project to go forward without almost help from the team because we cannot fool ourselves word of mouth will not disappear nor the online world.
Active Social Networks
Check the social networks, look at their followers, do not trust if they have many followers but with little activity, since followers can be bought. So, you have to examine the social networks at your fingertips, get in the profiles of the followers, look for them in Google to check that they are real people if you discover that these people are from the sector of the ICO or the Blockchain ecosystem, better than more points. Everything counts!
Press Releases In Relevant Media
Search the name of the cryptocurrency or ICO in Google and see if relevant means of the ecosystem such as Coindesk, CoinTelegraph, GuiaBitcoin or conventional newspapers talk about the project. If they talk about the project, it gives you more confidence.
Whenever you invest in an ICO, I advise you to write to one of the members, see how long it takes, the way you respond, with this you will discover if the team is communicative. A project in which the team does not communicate adequately with investors will not reach any port.
The Telegram group of the project is a pretty good filter. If you join the group and see that it has not been written for several days or that it talks about any topic other than the project, do not invest in that project because the community is not faithful.
If you have any queries about this post feel free to ask me by comment section or contact page.