ICOs are a part of discussion everywhere I visit on the internet. There are certain aspects of ICOs that many crypto investors not aware of. Increase in scams in the ICO universe has forced me to drop this article and spread awareness on this crucial assets.
Knowing a thing or two about ICOs actually helps to dodge scam ones. Cybercriminals stole $150 million through ICOs in 2017.
10 things about ICOs every crypto Investor should know
1. Unique ICO is not equal to trusted ICO
Just because a particular ICO is unique doesn’t mean it’s safe to invest in it. On paper, an ICO may have a strong backing of vision and goals but you can’t just invest money into a dreamy project.
2. High gain and Huge losses
What you look out for while investing in an ICO? I know ICOs are very profitable but sometimes if you don’t diversify your portfolio and buy solely on hype then prepare for huge losses.
3. Lack of regulation
ICOs are not regulated and that’s why there are lots of scam ones luring crypto investors at any given time. Investors have to take responsibilities of their beloved money in case they choose to invest in scam ICOs.
A clear roadmap is what strengthens the belief of investors. Stay away from ICOs which don’t have a clear roadmap set ahead of them.
Who is partnering with the company? Search for this as that’s what determines its fate.
6. Minimum investment
This is very important. If the minimum investment, for example, is like 10ETH or 20ETH then things are not 100% pure.
How transparent are the founders when it comes to the short-term goals?
Even scam ICOs may have a good reputation on the internet. The praise you witness on the internet could be fake and you should check other sources too.
9. Terms and conditions
Always read terms and conditions.
10. Riska and Reward
Before investing your precious money into any ICO, study it. The goals, team, timeline, followers, word of mouth, etc – these things matter the most.