If you’ve witnessed the graph of Bitcoin prices in 2017, you probably want to get your head around it, or anything related to it. Now that everyone is talking about Bitcoin and spinning yarns of how someone they knew became a millionaire; it is obvious to feel remorseful to be one of the tableau vivant. However, there are many investors, who thought bigger and invested in ICOs and not in digital currencies.
ICO stands for Initial Coin Offering, which resembles a mutual fund market, where the ICO owners invite crowdfunding for their proposed coins. A report revealed that ICOs have gathered more funds in the initial three months of 2018 than they had in the entire 2017. But, all ICOs are not worth investing and may even be a scam. Today, we’re going to help you on how to find the best ICO to invest in and not fall for a scam.
How to Find The Best ICO?
Before you randomly pick an ICO to start with, you may probably want to find out the best that can deliver better returns and not scam you. We’ve enlisted the ways to help you choose the right one:
1. Keep Up to Date
The golden rule to win is to keep you updated with routine activities of the market. One of the best ways to fetch knowledge is the internet. You must not leave any stone unturned before putting your funds in any ICO. You may consider going through daily posts, forums, blogs, cryptocurrency related news, expert tweets etc. Also, if you keep a taste in technology, it would be an added benefit if you could understand the technology that your preferred ICO is working on.
2. Use Case Studies
Once you’ve collected satisfying information and shortlisted a few ICOs, it is time to do a case study. Although, it takes time to go through all the pile of pages and search for trustworthy websites that can offer a considerable result for the ICOs. You must check the previous ICOs that had similar characteristics and how well did they perform. If you could see them crashing.
3. Consider the Team Structure of ICO
If you wish to know on how to find the best ICO, credibility of the controlling team is one of the most important factors. It is understood that ICO is a complex task and clearly out of reach for those who lack required skill set. Before you put your capital into any such venture, you must consider the team responsible to run that ICO. If you see some popular names, who possess fame and experience in the relevant field, it’s a green signal.
4. VC Support
VC stands for Venture Capital support, which means that more experienced investors laid down their trust in a particular venture. Although, it is not compulsory that every ICO would have VC backing up but if it has, you probably don’t want to miss out on this one. Also, an ICO fulfils rest of the scrutiny factors, you may consider overlooking VC support.
5. The Background Check
A BGC or background check of the venture you’re considering is a must. You must look for all the details and search for any flaw in the documents or the controlling authority. Also, you must check if the organization running ICO had any other past projects, and if they had, what happened to them. If you see a positive flow of facts, this may be the ICO you would like to fund.
Overall, ICOs are another form of a public funded currency, where you’re paying an organization to develop a currency, which is supposed to carry its own profitable figure in the market. Now that you’re aware on how to find the best ICO to invest in, you can calculate the overall risk to profit ratio and give it a hit. However, you must know that ICOs also carry their own risks and may fall-off like any cryptocurrency. If you wish to share your ways of choosing the best ICO to invest in, do let us know in the comments below.