3 Simple Rules That Make You a Smart ICO Investor
That is for sure you know how exciting and unpredictable the world of cryptocurrency can be. Just for a few seconds people can earn or lose their fortunes and the media keeps writing on a daily basis about brand-new technologies. The rapid development of the world economy caused the emergence of new forms of cryptocurrencies and, as a result, this sudden growth attracted investors from the whole world.
Priority Token would like to share a little bit with the rules on how to be a smart ICO investor.
Understand the value of the concept.
The concept allows you to evaluate the commercial side of a startup. The investor will need the skills of a businessman because at this stage he will have to understand how demanded will be the product with the declared characteristics. A product or service idea that provides a workable solution to an existing market need. Ideally, the concept should be something that the team has shown to work in real use cases. Check the MVP.
To evaluate the potential value of the proposal, look for numbers on the industry and compare.
Find the right team.
It is worth making sure that the development is provided by real people interested in developing the cryptosystem. Before making an investment, it is necessary to pay attention to the level of experience and the competence of developers. If the website does not offer background on their Linkedin and expertise in the field, that is a red flag that should alert you.
A reliable team should also be transparent about their operations and communicate with potential investors frequently before their token sale. Don’t forget to check some additional resources.
Another thing, a good sign for a trustworthy team is a designed website which directs you to the whitepaper that explains the project.
Stay safe when investing.
The code (technology) is being assessed quite difficult. If a potential investor is not a programmer, he is unlikely to be able to independently determine the complexity and the quality of development. At the same time, the capital holder has the opportunity to ask a general question about the properties of the technology or to learn the source code. Always ask for the link to GitHub.
Deceivers always dispense with vague formulations and refer to a third-party project. Check if the code matches the startup description, and note the format of the response. Criminals seldom pay attention to SEO-optimization of their resource, so having a good website will point to a worthy company.
Additional factors that can have a decisive impact on the ICO success:
1. Supply and Demand ratio. Like in any other market the value of a product rises with an increase in demand for it and vice versa.
2. Application Possibilities. The cost of cryptocurrency depends on the variety of ways to use it.
3. Government policy. Despite the decentralized character of the cryptocurrency, news about their regulation in different countries can significantly affect their price.
Either you are an investor or an ICO stay positive and be confident. Even Bitcoin was also once created by an enthusiast who once decided this is worth risking.
Are you looking for a reliable company with a good experience in ICO investing? We have some awesome ideas for you.
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When it comes to community management, many ICO founders don’t go further than creating accounts on Telegram, Bitcointalk, Twitter, and Facebook to post news every now and then.