The fundamental question
I came across this question that inspired me to write this post. The question is from Avadhood on Bitcointalk “How do you decide which ICO to invest in?”
I face the same question, and many should have the same thought. As you may know, we are in the gold rush of this appealing ICO fundraising. Many opportunities exist out there. How to find the sexiest pearl among them?
What to look for?
The first thing you must do in the beginning is to validate if the solution has the following requirements:
- The white paper (what the project want to accomplish).
- A slack or Telegram channel to communicate.
- A thread on the Bitcointalk forum.
- A website.
- A social network like Facebook and Twitter.
Without this information, it is almost impossible to invest your money into a project. Also, it is good to be able to discuss details with the people of the startup.
Where to locate them?
Lately, many websites list ICO, the ones I use personally are:
- Coinschedule – The website list the ICO and projects.
- Icorating – They evaluate and provide reports if the ICO are risky or stable.
- Ico-list – The website gives a vast list of ICO.
Much more exist, but you don’t need to have 20 websites when you do an investigation. Otherwise, you lose your valuable time without making any progress to identified interesting projects to invest.
You want more websites, Google has the answer for you. Put the following keyword “Crypto ICO” and the returning query will be on the first page.
Investing or not, and bonus
Many ICO offers a bonus as an incentive, that is awesome to have more tokens, and receive more value in return. Do you want to invest or not? It depends on your appetite for risk. Maybe your are someone who prefers to play it safe and leave your money on a saving account with 1.5% interest annually!
The market provides you an opportunity to invest in a new type of assets. Instead of holding only the typical investment vehicles like bonds, shares, and commodities. You now can diversify with crypto assets like Augur or cryptocurrencies like Bitcoin and Ethereum.
Warnings, and run away!
The best is to be able to see an alpha product or the solution of any ICO. Recently, many of those startups sell you a dream of a vision without any prior tangible product. That's very scary and give you an alert not to invest.
Also, you need to know the entrepreneurs or employees who start the company. You don’t want to see ghosts without a face or without any experience and technical background. If I see an ICO where the members prefer to stay anonymous, maybe the project can work, but from my point of view, without this vital information, you should run away.
When a market is not regulated, many con artists find opportunities to scam people. You need to invest time to evaluate the risk and do your due diligence. The ultimate goal is to make sure it is worth before transferring your digital cryptocurrencies on the platform.
I find this market very attractive and I'm staying ahead with my daily reading on this space. So far I possess apps-tokens in Lunyr, Humaniq, and Stratis.
I plan to invest and continue searching opportunity for 2017 and beyond on this hot trend. Many of those tokens have the potential to increase in value and provide real world applications the world will use.
You have a chance to build a good crypto portfolio and maybe have a chance to have a good return in the long run.
Do you plan to look for an ICO to invest in?