GROUND RULES FOR ICO INVESTING

in #ico7 years ago

GROUND RULES FOR ICO INVESTING

There are some ground rules if you are considering to invest in ICOs

  1. First of all, understand that ICOs are super high risk investments.
  2. For a start, never invest more than you can lose. Never borrow money to invest.
  3. The second thing you might want to do is do through research into the ICO.
  4. Read the fine print (if there is any!), check any new information being posted through bitcointalk or other forums,
  5. Check the credentials of the people behind the project, check if the persons mentioned in the project is actually involved (a good example is Vitalik Buterin who has to denounce ethtrade.org, a scam site).
  6. What are the technology features of the coin? Is there a credible white paper?
  7. Are the coins fully or partially pre-mined?
  8. How much supply is in the hands of the developers?
  9. Who is controlling the wallet receiving proceeds? Is there any escrow?
  10. What are the security practices adopted by the team?
  11. How much interest is in this coin?
  12. Are you better off waiting until this coin gets listed on a popular Crypto Exchange?
  13. Understand that the early days of a coin can be very volatile! Are you ready to stomach the swings?
  14. What is the market potential of the service? How does this add value for the coin?
  15. Is the coin’s appeal limited to a particular region of the world? Or does it appeal universally?
  16. Fair distribution is still a problem. How sure are you someone isn’t going to pump and dump?
  17. Are the tokens refundable if the project does not meet its funding targets?

The above is the basic question you need to ask yourself. If you find any doubt or are not provided the answers in the official site of the project and instead in a forum, please avoid this project. Bear in mind, the majority of ICOs will end up in the dumpsters. And always ask yourself if you can wait for the coin to be listed on a well known reliable exchange – without this – a coin isn’t worth anything.