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Old 03-01-2018, 08:57 AM
moneytradecoin moneytradecoin is offline
Join Date: Dec 2017
Posts: 57
Default 4 points to remember before investing in ICOs

An Initial Coin Offering, commonly referred to as an ICO, is a new technique that is used to generate capital for cryptocurrencies. It is a fundraising mechanism in which new projects sell their underlying crypto tokens in exchange for Bitcoin and Ethereum. The idea is similar to that of IPOs where investors purchase shares of a company.
This idea of pre-sale coins of a particular cryptocurrency or token of a Blockchain project has evolved in a crazy and successful manner today.

Let us take a few points that should be kept in mind before you invest your hard earned money in Initial Coin Offerings.

1) Group Structure

It is essential to have complete knowledge about the team, in particular, the development team and the advisory board. Check with each team member, visit their social media profiles. Look up to their past experiences, if they have any crypto knowledge and most importantly, which projects were they a part of before, or ICOs they were involved and the impact they had.

2) Assess the Whitepaper

Whitepaper contains all the necessary information about the project, so to have complete knowledge of the ICO it is imperative to read through it.
It will help you to answer all the simple questions from the value of the project to its future potential.
This will give you an in and out to the project and thus make the picture clear in front of your eyes. Needless to say, white paper is the silver platter to potential investors.

3) The need for the tokens

ICOs generally imply the creation of a newly dedicated token for a project. The first question that comes to the mind is what is the token for, why is it necessary? The question that accompanies is how does the Blockchain technology work

4) Community and Media

For a successful business, it is essential to have a wide supporting community and to have a good presence in the media, be on social media or the traditional media. To know insights about the project, research and see their social media activities and the size of the community.

These are just a few steps that can be considered for fruitful and wise ICO investments. However, one should keep in mind that ICO is a volatile market and offers no stability.
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