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November 01, 2017, 08:54:12 PM |
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You may have run across several threads like this already, where a user would post something like: "This ICO is the best ICO" or "Have you heard of Shit ICO? It is really good"
You have to be very careful of these ICOs. Most of them are scams and most of them will lose you money. When investing in an ICO make sure to read the following:
1) Distribution - How well distributed is the coin? If 90% goes to the founders and then 10% goes to ICO investors, then it's better if you stay far away from this coin. A fair distribution is more like 95% to ICO Investors and 5% or less to founders.
2) Good Team - Is the team made up of teenage kids? Does the team have 3 people total? Are all the people in the team inexperienced? If yes to any of those, then stay far away. You want to look for a larger team of 10+ people and part of the older crowd.
3) Features - Does the coin bring anything new to the crypto world? If not, then you might want to stay far away from this coin.
4) Purpose - Does the coin have any purpose, does it serve any unsolved problem before? Bitcoin solved what once was an unsolved problem, and Ethereum did the same too. What does your new ICO have that no other coin has done?
5) Roadmap - View the roadmap of the coin. If there is no road map, stay far away.
6) Whitepaper - Make sure to read the whitepaper and can understand it. If you are clueless about anything, then stay far away from the coin.
Last but not least, keep in mind that 99% of all ICOs will DIE. It's your risk whether you think you will land on a 0.01% goldmine, but the chances are very low.
With that, I hope you invest well in the crypto world.
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