The golden rule: invest in what you understand. Sounds logical, right? There are quite a few people who know how to evaluate ideas using a scientific approach — studying markets, digging deep into technology, and identifying systemic miscalculations. However, if the scope of a project overlaps with your competencies, then you already know the market from the inside, and you are able to assess the possible success of a project. This is a rule worth using.
Pay attention to these key questions:
1. How effective is the idea?
2. Does the product solve real problems?
3. Is the source of profit clear?
How can you learn the answers to these questions? Project websites often just say something like, “Everything’s gonna be okay!” This is not entirely reassuring.
First, look at the project team. If the team has already developed a product, this is a big plus (although many successful projects have been launched without this prior experience.) Check if there are any founders, if they are on social networks, and if they answer questions. Regarding those who are identified as project advisers: are they aware of the existence of the project? You would not believe how often it turns out that they aren’t.
Share the project idea with friends and colleagues. Try to sell them on the idea. Explain to them why you think it will work, and answer their questions. If they buy the idea, this is a pretty good sign that you understand the investment. The golden rule: invest in what you understand.
Our pre-ICO will begin soon. The Digmus team is ready and well prepared! Learn everything about the project at: www.digmus.io. And then let’s talk.
