Do you want to invest in cryptocurrency? Well, you are not the only one who wants to get their hands on massive profits.
Most people who invest in cryptocurrency are looking to gain profits. However, on one hand, investing in popular coins like Bitcoin will increase their chances of profits, they also increase the chances of losses. Thanks to the volatility and price fluctuations in the crypto market.
But most people are always looking for the next big thing in the crypto market to invest in. And that’s where an ICO comes into the picture. ICO, Initial Coin Offering is defined as the introduction of a new coin in the market.
ICO gives you a good opportunity to invest in a new coin assuming that the coin will become popular and give you returns. However, before you invest in the very first ICO that you come across, it would be wise to do your research.
In this blog, let’s look at the ways that can help you select the next best ICO and avoid falling for a scam.
- Finding the ICOs
Of course! Without knowing the upcoming ICOs, it can become difficult for you to invest. Hence, start by finding an ICO. You can follow platforms like ICOalert where you will find all the information related to upcoming ICOs.
These platforms offer coin developers to put out all the information related to their new coins and how it differs from other coins in the market.
- ICO Evaluation
Once you have identified the ICOs you want to invest in, start its evaluation. This will include various steps and questions you need to ask yourself to make sure you are taking the right decision. Remember, ICOs are the easiest way to scam investors and abscond with the money. Hence, evaluation is of the utmost importance.
Here’s how you can evaluate an ICO.
- Uniqueness: Blockchain is a diverse technology. And there are several ways people can use this tech to develop a new coin. Hence, look for unique features on the new coin. If a coin is using the same old decentralized currency concept of blockchain, you would be better off investing in Bitcoin.
Hence, find out if the new coin is coming up with ways to solve something ambitious.
- Currency Distribution: Each new crypto coin will have a smart contract. Read the smart contract to find out details of currency distribution such as whom, when, where, how much of the crypto coin will be distributed. What will happen to the unsold crypto coins?
- Exchange Plans: It is certainly a green flag for an ICO if major crypto exchanges are offering the new crypto coin. Hence, when choosing an ICO, check if it is offered on crypto exchanges like Coin base, Kraken, or Bittrex.
- Type of Blockchain: Usually, a new ICO must be developed and launched from an existing blockchain. For example, Ethereum blockchain. An ICO that is developed and launched using the Ethereum blockchain will accept the payment using Ether. Hence, you need to have the said crypto coin to buy the ICO.
- Whitepaper: The most important document an ICO can offer. You must always read the whitepaper document that outlines everything about the crypto coin. The document must be comprehensive.
Final Takeaway
ICOs are a great way to find a new crypto coin for investment. However, since several ICOs are usually a scam, you need to be highly careful before choosing one. Apart from finding an ICO, you also need to evaluate it thoroughly.
Find out more about the crypto market, guides, and fundamentals on Coin Informer!
