Factors To Consider Before Investing In ICO - Sourajit Saha

Friday, 5 January 2018

Factors To Consider Before Investing In ICO

Crypto News: The internet has been crawling with ICOs for a while now and a lot of people are looking to make investments that will yield substantial returns in the future. While this is a good thing to do, there are some things you need to put into consideration before investing in an initial coin offering. The ICO trend has gotten bigger, and as more people are getting to know what the cryptocurrency world is about, the more ICOs will be established.

Most people are looking to take advantage of ICOs in order to make quick and easy cash. That is why a lot of companies are coming out with different ICOs on industries and programs, feeding on the eagerness and enthusiasm of people to make quick money. While there have been really successful ICOs, like Ethereum, there are also cases where something happened along the line and the whole project collapsed. Take DAO for instance; after raising about a hundred million dollars during their ICO campaign, it was reported that a hacker got into the system and carted away millions of dollars, which made DAO bankrupt, unable to repay their supporters, and unable to complete the project. There have also been cases where ICOs were launched only for the campaign to end and people realized they had been defrauded. And since there's no particular body regulating the crowdsales, investors are usually left at a loss.
Factors To Consider Before Investing In ICO
What we hope to do in this article is provide you with the right information on what to look for before investing in an ICO. This way, you'll be protected from fraudulent activities disguised as ICOs, and you'll be able to make careful considerations on the initial coin offerings that will provide you with good returns. So without further ado, let's take a look at some of the factors to consider before making an ICO investment.

THE MAIN PROJECT

There are questions about the project you need to ask yourself before investing in its ICO. Like what exactly is the project about? How did you come about the project? What are the future plans of the project? How much impact is the project going to make in the industry? Is the cryptocurrency community you are involved with talking about the project? All of these questions should be put into consideration before you buy in. If everyone is talking about the ICO, but they do not know what the project itself stands for, then you might want to throw the project in a closet. Even if you believe the project is legitimate, you still need to make your research in order to know if the idea behind the project can be a successful one or if it's going to go down the drain few months after the ICO. Ensure that you do not invest your money until you are 100% sure that your investment is going to be safe.

THE WHITEPAPER

Most ICO campaigns come with a whitepaper. A whitepaper is a document that explains everything a project is about to an investor. You'll get to know the problems the project is aimed to solve, why it is a credible investment, and how the company plans to make the project grow in the coming months and years after. The information written in the whitepaper is often an easy language, which means, you'll be able to understand what it says. It might be lengthy but it will do you a lot of good if you can read through and understand what the paper is talking about. A good whitepaper must contain real, specific figures, and statistics that are presentable and are from credible sources. If you finish reading the whitepaper and the information is too general, like it could have been written by anybody, then it's better you let your money rest in your bank account.

SUBSTANTIAL BACKING

It is true that the presence or absence of a credible organization support does not actually translate to the success of an ICO, but still, it provides a safe environment to invest in. Not every project is owned by a new company. Some of these blockchain projects are from companies that have been around for a long time. They are realizing how good the blockchain can be and are also launching different projects based on the same technology. Therefore, if the project you are looking to buy its ICO has got credible backing, then you can invest your money with peace of mind.

THE ICO PLATFORM

Another factor you need to carefully consider is the platform on which the ICO is being offered. For instance, a Canadian ICO being hosted by a Singaporean platform is a complete no-no. It only makes sense that a Canadian project takes on a Canadian hosting. Ensure that you check the credibility of the platform before you invest your money. Once you see that the platform is insecure or completely unknown, or they haven't been used to host any ICO in the past, then it's best you look for other investments.

SUMMARY


You can make a lot of future profit when you invest in an ICO. But ensure that you find out everything you can about the project before investing your cash. There are a lot of scammers on the internet, and with every technology revolution comes a different type of scam. So you need to be really careful when investing in an ICO.
.................................................................................
Crypto News: The internet has been crawling with ICOs for a while now and a lot of people are looking to make investments that will yield substantial returns in the future. While this is a good thing to do, there are some things you need to put into consideration before investing in an initial coin offering. The ICO trend has gotten bigger, and as more people are getting to know what the cryptocurrency world is about, the more ICOs will be established.

Most people are looking to take advantage of ICOs in order to make quick and easy cash. That is why a lot of companies are coming out with different ICOs on industries and programs, feeding on the eagerness and enthusiasm of people to make quick money. While there have been really successful ICOs, like Ethereum, there are also cases where something happened along the line and the whole project collapsed. Take DAO for instance; after raising about a hundred million dollars during their ICO campaign, it was reported that a hacker got into the system and carted away millions of dollars, which made DAO bankrupt, unable to repay their supporters, and unable to complete the project. There have also been cases where ICOs were launched only for the campaign to end and people realized they had been defrauded. And since there's no particular body regulating the crowdsales, investors are usually left at a loss.
Factors To Consider Before Investing In ICO
What we hope to do in this article is provide you with the right information on what to look for before investing in an ICO. This way, you'll be protected from fraudulent activities disguised as ICOs, and you'll be able to make careful considerations on the initial coin offerings that will provide you with good returns. So without further ado, let's take a look at some of the factors to consider before making an ICO investment.

THE MAIN PROJECT

There are questions about the project you need to ask yourself before investing in its ICO. Like what exactly is the project about? How did you come about the project? What are the future plans of the project? How much impact is the project going to make in the industry? Is the cryptocurrency community you are involved with talking about the project? All of these questions should be put into consideration before you buy in. If everyone is talking about the ICO, but they do not know what the project itself stands for, then you might want to throw the project in a closet. Even if you believe the project is legitimate, you still need to make your research in order to know if the idea behind the project can be a successful one or if it's going to go down the drain few months after the ICO. Ensure that you do not invest your money until you are 100% sure that your investment is going to be safe.

THE WHITEPAPER

Most ICO campaigns come with a whitepaper. A whitepaper is a document that explains everything a project is about to an investor. You'll get to know the problems the project is aimed to solve, why it is a credible investment, and how the company plans to make the project grow in the coming months and years after. The information written in the whitepaper is often an easy language, which means, you'll be able to understand what it says. It might be lengthy but it will do you a lot of good if you can read through and understand what the paper is talking about. A good whitepaper must contain real, specific figures, and statistics that are presentable and are from credible sources. If you finish reading the whitepaper and the information is too general, like it could have been written by anybody, then it's better you let your money rest in your bank account.

SUBSTANTIAL BACKING

It is true that the presence or absence of a credible organization support does not actually translate to the success of an ICO, but still, it provides a safe environment to invest in. Not every project is owned by a new company. Some of these blockchain projects are from companies that have been around for a long time. They are realizing how good the blockchain can be and are also launching different projects based on the same technology. Therefore, if the project you are looking to buy its ICO has got credible backing, then you can invest your money with peace of mind.

THE ICO PLATFORM

Another factor you need to carefully consider is the platform on which the ICO is being offered. For instance, a Canadian ICO being hosted by a Singaporean platform is a complete no-no. It only makes sense that a Canadian project takes on a Canadian hosting. Ensure that you check the credibility of the platform before you invest your money. Once you see that the platform is insecure or completely unknown, or they haven't been used to host any ICO in the past, then it's best you look for other investments.

SUMMARY


You can make a lot of future profit when you invest in an ICO. But ensure that you find out everything you can about the project before investing your cash. There are a lot of scammers on the internet, and with every technology revolution comes a different type of scam. So you need to be really careful when investing in an ICO.
.................................................................................

1 comment:

Sourajit_Saha
Hi, I’m Sourajit Saha, An Online Marketer & Cryptocurrency Spectator From Kolkata, India. I Have Been Blogging Since Last Quarter Of 2010. I Started Blogging As A Hobby, And Soon It Turned Into Passion And Later Profession. Click Here To Know About Me!

I'M ON SOCIAL MEDIA

  • Get All Updates

    FEEDS FROM TWITTER