With a new ICO in the market every day, it is getting difficult to choose which ICO to choose for investing and which not. Here are some tips for you to choose the right ICO for your investment.
ICO (Initial Coin Offering) is the new method for raising funds and investment for new businesses and startups. ICO has disrupted the traditional way of raising funds and revolutionizing this whole process. Here are some smart tips you need to keep in mind before investing:
- Evaluate the white paper analytically
The first thing you should see in the whitepaper is the feasibility and the utility of the project. One should understand the underlying concept and have all doubts cleared from the developing team.
You can also look around social media like Reddit where you can quietly know the worth of the project. You will also get to know whether it is really worth or just a scam.
- Educating Yourself Further
Your research does not end with reading the whitepaper but you need to research about the competitors of that project already in the market. You need to make a list of all the advantages and disadvantages of the project.
- The Project team is Important
A project is built with its project team. In order to know the best about the project, you should thoroughly investigate the team members. Because sometimes you will get to know that the team members have been involved in scams and frauds which makes the project unfavorable.
- Watch out for Announcements
You should watch out for the announcements of the project on various forums and gauge the reaction of the people. You should also note the reply of the team members towards the questions of different investors. The reaction of the team moderator towards your questions will give you a fair idea about the type of work they are doing and whether they are confident about the project or not. If the moderator bans you from asking questions, then it is a sure shot sign that the ICO is a scam.
- Expert Advise
You should follow the expert in that field of the technology and get their insights about the project.
Thus, keep in mind these tips before investing in ICOs and save yourself from all scams.