ICO – Initial Coin Offering has been a buzz word and every one with a mere concept are raising funds through ICOs also known as Crowdsale. Not everyone of them are going to hit the exchanges and increase X000% and give you 100X returns. You need to do your own research and have some knowledge about the domain in which the platform or company is raising funds. To help with that, we’ve tried to aggregate few criteria while choosing to invest in ICOs. Don’t rush and spend your ETH or BTC and repent later.
These points are only for your guidance and not an Investment advice. Even after following all the criteria, ICO might turn out to be a scam or an unsuccessful one. Even few ICOs get hacked and your money could be lost. So again DYOR (Do Your Own Research) and MYOD (Make Your Own Decision)
Here’s a simple selection criteria (We hope you find it useful):
- The company/team offering the crypto already has an up and running mature product (Kickico, Omisego etc)
- They have first mover advantage in the crypto space and a unique use case.
- The management team are experienced in cryptos or at least working with advisors who are experienced.
- You can easily understand what the crypto does and the management team can communicate that effectively.
- There are unique features of the crypto that can’t be easily mimicked by another future crypto.
- The crypto pays dividends, rewards, profits etc
- The management team aren’t taking an unrealistic portion of the coins/tokens.
- There isn’t 500 Trillion coins available.
- The pre-sale, ICO isn’t going on for 5 years.
- Compared to other cryptos, is there something that seems suspicious/fishy about the functionality of the crypto, the management team or anything else about the proposition.
Here are a few other things to bear in mind in addition to the above criteria:
- Not all crypto currencies are going to go up in value.
- You need to be mercenary with some of them. That is to say, shorter term trades if a situation changes about a cryptos competitive edge or unforeseen circumstances.
- Focusing on high quality cryptocurrencies will serve you much better in the long run than throwing spaghetti at the wall.
- A small amount of investment in an ICO can make huge profits, it’s quality, not quantity.
Lastly, make sure you’re on the correct website. Communicate with the team before you send ethereum or bitcoin.
Good luck out there!
Source: SteemIt Article