Most of us fail to decide which ICO is good and which is worst? Specially at that situation when daily 2 to 3 ICOs are introduced to the market. Most of the investor or lets say beginner loss their money in the ICO for the greediness of getting 10X and 20X within a month or few month as a result the ICO collapse and we will not even get our money back. And I am also one of that person who lost money in some ICO.
So from my experience today I will tell some tips so that you can yourself decide whether the ICO is great or worst. So first of all I will make clear what is ICO.
What Is ICO?
ICO stands for (Initial Coin Offering ). In a simple word,It is the offering or pre selling of the coin to raise some fund for the further development of the token before listing it on major exchanges. In the ICO phase some percentage of coins are sold offering some bonus and the raised funds are utilized for the further progress of the token. Before introducing token as an ICO the developer should make a clear white paper, a road map, reveal developer team and should have clear vision of the project.
Investing in ICO will be much beneficial if the developer team is strong and if the project is unique than other coins. But if the developer team is not strong and the project idea is already In the other coins than that will be waste of investing in it.
What should we know before investing?
Before investing in ICO we should first see the developer team whether they are in the cryptocurrency field from long time or not. If they have the experience of crypto field and crypto market or not. If they have the idea of creating good platform or not if the team is strong than we will read their white paper.
A white paper is an authority or guide that helps reader to know the content of the body or anything to decide or solve the issue or problem or make decision. Simply, a white paper is a document determining the technology of the blockchain. This file contains a detailed description of the system and its interaction with users, as well as current market data and growth anticipations and requirements for the issue and the use of tokens. If the ICO that we are going to invest on has clear whitepaper with related contain than now we will see the Roadmap.
A Roadmap is a project management specified in the given date. In the road map all the project upcoming events and details are mentioned. It is mentioned in a road like figure so called road map. So after reading or viewing the road map we will ask ourself if the mentioned events are technically possible or not what is the gap between the events and if that time is sufficient for that events if you think yes than now we will see if the project plan are matching with other coin or not.
If the coin with the same project is already in the market than we will see if they can overtake them or not by compairing the developer team. If the team of the ICO are better performer than the already existing coin than now we are ready to invest on it from marketing view.
Than we will now see the total supply of the coin and its ICO price. If the tokens are in large quantity and the price is more then we should ignore it. But if the supply and price is less than that is the great coin to invest on.
Keep in mind that the money can grow to much more than you have invested if the project goes great but it can turn into nothing if the project fails so study all these before investing. Don’t do what others do study yourself because its your money not others.
I hope you all understood clearly and now you can decide which ICO is good and which is bad.
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Cryptocurrency trader and photographer