Crypto Talk #7 What do you need to know before investing in ICO (Initial Coin Offering)?

mann (61)in #crypto • 7 years ago (edited)

The buzz word in the financial sector is all crypto now, and everyone wants to invest. Similar to an IPO (Initial Public Offering), in case of an ICO, a company can raise funds by offering shares for cryptocurrencies like Bitcoin and Ether.
The significant difference, however, is the way the ICO is conducted.

It is not as regulated, and there are not many checks done on the companies offering ICO, unlike the IPO which undergoes strict regulations. The profit potential is quite high, and anybody can invest in an ICO.

Of course, this is also the reason why you need to be careful while investing in ICOs. Here are some checkpoints that will help you to make the right choice for investing in ICOs.

White paper evaluation should be the first step in any investment, and for ICO, this will be the pitch of the company offering the shares. You have to know what the company offers, how are their operations planned, the stakeholders involved, their mission and vision, etc.

Unless you are clear on what the white paper states, it is better to avoid investing in that company. It is also necessary that you check the facts quoted for their genuineness.

Researching is the crucial aspect of success in any investment. Research well about the company and the shareholders to know their backgrounds.

Sometimes you will be surprised to see that they have more experience and it is worth taking the risk and at other times, you might find something that is not in their favor. Either way, researching well will help you to rely on the company.
It is not just the startups that offer ICO but even established enterprises offer this as a way of accelerating their capital, or when they are launching a new venture.

In such cases, it will be easy to gather information about the company and look at past performances before venturing into the ICO.

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If there are companies which do not have the explicit list of team members or their designations, then it is a strict NO to invest in them.

Long-term benefits of the tokens that you buy are also to be taken into account. If you are only going to gain resale value and no other benefits from purchasing this token, then you may want to reconsider your choice. Quite a few companies will allow you to reap benefits regarding availing their specific services or products or offer you a deal on their services. This way even if your token price gets stagnant, you are making the profit with the additional benefits.

Check if the company has a clear roadmap and plan for future. You have the right to know the details of the project from the inception to the end date of what is expected. If there are no future investments in the pipeline for increasing the token value, then you might not be looking at the amount increasing or reselling at a profit in the future.

Apart from the above, you should also know the customer reviews of the company and check out their website and how it works, etc. before making a decision. And of course lastly, trust your instinct before making a decision.

Interested in my previous blogs:

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#currency #blog #money #ico

7 years ago in #crypto by mann (61)

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abrahem (38) 7 years ago

best tips that i found here. must implement it next time thanks dude @mann really thanks man for your points.

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jhon-rumbya (42) 7 years ago

thanks to very good post friends, incredible information, as the economy improves, and increases in the income of the affluent, time becomes more valuable: every bitcoin hour is profitable for us.

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