Given all the hype in the industry, an ICO investment might seem like a good idea, but choosing the right ICO for your next investment is not always easy. I probably do not need to explain why should you spend considerable time, and even money, to Research about an ICO before starting to invest in it.
Cryptocurrency is still a very new and volatile industry that could vanish in the thin air at any time. So, you should be very careful while choosing an ICO for investing your hard earned money.
In any case, you must always follow the first golden rule of risk investments — Do not invest more money than what you can afford to lose.
Here are some ideas to help you make the right ICO selection.
Tips to find the right ICO to invest in
ICO industry is too volatile, mainly because most of the ICOs running out there are likely to fail or turn out to be a scam eventually. You do not want to get involved with such projects.
Here are a few ways to evaluate the legitimacy of an ICO.
The Website is the first thing you will see, and most things will become clear right here. A good and clean website with proper information about the project, the team, the roadmap, and the ICO, along with security provisions, is what makes a great blockchain project.
The White paper is another crucial aspect of a good ICO project. Make sure to read the complete white paper and analyse it carefully to see how and whether the project solves any real problem, what is the role of blockchain and how does the token work and benefit the users.
The team is an important part of any project. In addition to providing all the necessary technical and human support needed for the project, it also helps to build a trust among the users and investors. So, research the ICO team members, their knowledge and experience before you invest.
The idea is the foundation of a great project. A realistic idea that has a demand in the market can only contribute to the success of an ICO.
The roadmap is the procedure/course that the particular project is going to take over the months of its development. This will also contain the ICO and token distribution schedule.
Identifying a bad ICO
The best way to spot a scam blockchain project is by finding out everything possible about the team behind that project. A good ICO will certainly have a team of skilled individuals who have the knowledge and experience in their respective industry and the skills to finish the project.
On the other hand, if the ICO team members are completely anonymous, that should be treated as a red flag. If you can get your hands on the names of the team members, make sure to research about them properly to ensure that they actually exist and are part of the team.
Besides the team, you should also check what or if people are talking about that project in the popular crypto communities and media. Blockchain communities are probably the best place to find good and reliable new ICOs.
If you are prepared to invest in a reliable and transparent ICO project, you should find out more about Ez Cash, which is a blockchain-based C2C marketplace.
