As a newbie in crypto, we will be encountering different scenarios and tools to invest in - coins, icos, tokens, etc.
Here's an excerpt below from an article, which I think is very helpful for us.
Read the whole article here:
http://www.information-age.com/initial-coin-offering-safety-123471100/After a lightning increase in 2017, the ICO market is still working out how to structure itself. Initiatives such as the ICO Charter already suggest that there is a good practice in Europe. The charter has received a lot of support from credit rating agencies, law firms, ICO specialists and consulting firms.Currently checking purchaser’s identities, the initial stage of fundraising is well verified, and the verification steps in the process work well when they are integrated as soon as possible. However, the latter part still poses problems as many lack hindsight and good practices in the area.360-degree security. Previous experience shows that the fundamental points are not always respected during some ICO’s. As the result, the security of smart contracts is a fundamental element to consider. Although a smart contract is in essence secured, mistakes in the code can lead to indirect or malicious usage. This was the case last November during the freeze on all multi-signature Parity wallets. In this respect, the rules applied are those of every good developer: meticulousness and checking...