ICO stands for Initial Coin Offering and it is one of the best methods for fundraising. New start-ups and companies gather fund for their project via ICO and investors buy them with huge expectations. From last few years and every year over 100+ ICOs come into the limelight. So to pick the right ICO for earning a huge profit is not everyone’s cup of tea. And if you are looking to invest in ICO but confused about how to choose an ICO to invest your valuable money then you are lucky to land here.
We are here with the notable facts you need to consider before choosing the ICO to get huge revenue. So just go down and reveal how to spot right ICO from the horde of ICOs.
Things to consider before choosing an ICO
Although all the ICOs promise to give the huge returns, in fact, most of them will get unsuccessful. How to save your money such type of fraud projects? Have a look below to know:
Read White paper
The initial step to buy the particular ICO is to observe its white paper. A white paper is created by the company to inform readers about their project. But only reading a White paper is not enough, the way you read also matter a lot. The white paper contains each and every information about the project such as project description, technical details, the team behind the project, token sale, etc.
So analyze each aspect of the White paper and conclude whether it will be profitable or not.
The team behind the project
When you are preparing to invest in an ICO then you must inquire about the team behind the project. The experience and the strength of the team behind a project ensure its success and on the other hand, a weak and inexperienced team lead to the failure of the project.
You have to check out whether the team members are related to cryptocurrency or involve in other tasks. Do the founders and shareholders are efficient to run the project and to bear the downtime. How much trust you can do them?
You have to keep a track on their social media profiles to gather all the required info to ensure their trustworthiness, capabilities, and experience as well.
The uniqueness of the concept
Does the project offer something unique? Is it based on the concept which mostly ICOs are following?
First, inquire that the project contains some unique idea or not. If the project doesn’t deliver anything different then you should avoid it. Go for the projects that come with unique features like developing the solution for lower transaction fees and safe transactions. These types of ICO projects worth to invest.
Quality of the code
One of the best ways to evaluate an ICO is working code. In case if a particular ICO project has no working code and if they have and it is not open source then it is not the good sign.
In fact, with the working code, you can analyze the project and its team but you need a little bit understanding of programming.
Know the blockchain technology
Not only team and product but also the major aspect you need to consider before investing in an ICO is its blockchain technology. You have to seek an answer to several questions: Is the Blockchain technology just utilizing P2P money? Is it functions as a distributive ledger or acts like smart contracts?
Is the Blockchain system is open source or it relies on the proof of stake consensus algorithm? If you know the Blockchain technology behind the project then it will assist you to conclude how much you will get engage with the project in the upcoming time.
Figure out the type of token
Before going to invest your hard-earned money in an ICO you should also identify what token will the company launch. You need to check out that will it be a stable coin, security coin, utility coin or anything else.
The token must have the commercial value and is it doesn’t have then it is worthless. You can check its commercial value in the white paper and if you don’t find out there then feel free to ask to the ICO developers.
Before you go…
Investing in an ICO is as tricky as walking on a cake and you have to consider each and every aspect attentively. Apart from the above-mentioned aspects, you can observe reviews and other people’s opinion towards the project to ensure its success. Nevertheless, cryptocurrency is known for its volatility so nothing is sure.
Invest only that part of your money which you can afford to lose in the downtime. Do intense research and then invest your money in any ICO project and you can also take the advice from your financial advisor.