How to Chose the Best ICO for Investing

CoinExpert

CoinExpert

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Jun 17, 2018
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Despite the high risk, investing into a project on its early stage can bring a good profit. Choosing a winning initial coin offering (ICO) can be a difficult task. The ICO market is unregulated and therefore very vulnerable to fraud. On the other hand ICOs are becoming more popular every day there have already been over 3000 ICOs to date according to Reuters' study. While no one can predict crypto future, there are still some steps you can take to find the best ICO to invest in.

Verify ICOs on Popular Crypto Forums

Your quest for the best ICO have get started with researching what is being discussed on popular crypto forums, such as BitcoinTalk. On the forums you can get a wide array of advice, as well as some insight into what projects people are excited about. In addition to getting some insight into your potential investment, you can also pick up some really helpful tips from seasoned veterans. Don’t be scared to ask questions. You are going to want to steer clear if you don’t see your project mentioned on any of these platforms.

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Choose ICOs with Experienced Development Team

To pick up the best project you have always research a ICO's development team who are the people who are going to be obtaining your investment. Start with the team’s social media accounts. Social Media research can reveal a lot about a project’s team. Don't invest in a project with a weak team of developers.

It will be useful to know do the ICO developers interact with other professionals in the same field? If the person in question is having technical discussions with other well-known crypto developers, this is a good sign that they are experienced in the space. Be sure to look for any red flags, such as newly created social media accounts or varying identities between platforms.

Never invest in an ICO with non-public development team. Many investors lost millions of dollars because they hadn't investigated the developers' team behind the project. Ideally, you should be able to speak directly to the project’s development team via their listed contact information. You can request for their credentials and other information that proves they are technically capable of handling the project.

Community Support within the Project

The level of community support within the project is another one important factor to consider when finding the best ICO for investing. GitHub is a launching ground for open-sourced projects, such as Bitcoin. The platform allows developers from around the world to work on the same project simultaneously. A project with an active GitHub is seeing strong support from the development community. In contrast, a project with little to no activity is not. You should also investigate the platform’s Slack Channel and Telegram. Both of these platforms allow ICOs to keep potential investors in touch.

Examine Thoroughly the ICO’s White Paper

Once you learn the general info about the project and its team, you can proceed to a detailed examine of the White Paper. Here is a brief rundown of common sections found in most white papers.

Overview: This is where you find out about the market problems that the project intends to correct. This section consists of statistics, studies, and graphs supporting the reasons why the platform is essential to the market.

Technical Specs: The technical specs section of the white paper is where you can find out exactly how the platform functions. This section should include a flowchart that explains the use of the platform.

RoadMap: The roadmap tells you what the company’s implementation schedule looks like. You can learn a lot about the planned rate of development for your potential investment in this section. It is usually one page in length.

Token Information: The token information section tells you what kind of token the platform utilizes. It should tell you if the token functions on a unique blockchain, or if it piggybacks off of another blockchain. ERC-20 tokens are the most common type of ICO token in existence today. These tokens function on the Ethereum blockchain.

Team: The team section gives you the who’s who of the project. You can see who founded and who is currently developing the project in this section. Most team sections include a picture along with a small blurb explaining the team members experience and previous accolades.

Invest in ICOs with open-source Code

You should only invest in ICOs with open-source code as the community is free to examine and contribute to making the code more technologically sound. Get in touch with the developers and ask them for the coding to their project. Tell them you want to review the coding to make sure it is sound. If they reply “no problem, it’s open source” that is a good sign that they are serious about their project.

No one can predict if you will earn dood profin on ICO investing, but you can optimized your investment opportunity by following the above-mentioned recommendation.
 
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