Disclaimer: investing in ICOs is risky, spend only what you can afford to loose.
An ICO is a new way to raise funds. It is done through Blockchain and cryptographic tokens. Organizations use ICOs to distribute the native digital tokens of their platform in exchange for digital currency like ETH and BTC. This is done to obtain capital from the public to fund the development of the product as well as business operations.
The token represents a particular set of rights as well as utility to the holder. It may be access to the platform, network, rights to the program, right to vote on various governance issues or to develop features for the system.
To invest in an ICO, be sure to:
- Research: only invest in projects that you have researched thoroughly, and you believe in. It is true that you can gain from ICOs, but remember that they help the development and launch of projects.
- Website: ensure that the new cryptocurrency ICO project has a website with all the required information needed to understand the project.
- Team and advisors: check who is building the project with their respective experiences in that field. Ensure that the team is technically strong and reliable to make it work.
- Whitepaper: read the whitepaper of any new cryptocurrency ICO project before investing.
- Project roadmap: be sure to learn the plans of the team, and the timeframe set out for it. You should also track milestones as they occur.
- Prototype or Working platform: find out if the team already has a working platform or a prototype, this may be a great sign.
- ICO terms and conditions: always read the sale fine Some projects have some initial investment with discounts from presales.
- Spending of ICO funds: also, find out how the funds will be used. A good project must list the plans and respect investor’s funds.
- Relevance and utility: the last and most important factor to consider is Is the project relevant to you? Does the project solve a real problem?
Following these steps should help you as you invest in ICOs.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.
