How to choose the best ICO to invest in
If you are reading this article, you have probably heard about people making quite big amount of money in recent months with that mysterious ICO things. If you want to learn what is an ICO and how to get it, check out that article, we've written for you.
With so many ICOs popping out and being announced and introduced everyday, it's easy to lose track and get overwhelmed by all these interesting project that do their best to lure you into investing. But no one has enough money to buy every token, so how to decide on which ICO to choose?
In this article we will be focusing on the things you should keep in mind and look for while choosing your project to maximize the chances of a huge profit.
1. The first impression.
Hearing about that interesting project and entering their site for the first time is very important. I know that looks are not everything, but when the design of the site is quite poor and sloppy it tells something about developers and we don't want to invest in an unprofessional project that won't succeed. We've written an article about things to look for in order to avoid investing in a scam project, you can read it here to feel more secure.
2. The userbase
Check if the project have already gathered some amount of people backing it. Projects often set up their reddit pages or chats and blogs, check out if there is any noise going on there that indicates that this project is not dead. The more users already support it, the more probable it is to succeed. People are the one creating demand and setting the market prices.
3. The developers
Research the people behind this ICO. Even if it turns out to be a marketing failure and there won't be many users there is still hope if the project itself is well developed and introduces some great technologies. And for that high skilled programmers and people with experience are needed.
4. Real product
You shouldn't immediately cross out the project that is yet to be developed, they are raising these funds for a reason, but if they are already able to showcase some beta version or prototypes of working platform or physical product it is a big advantage indicating that they are ready and determined to work on this project with or without the help of investors, therefore your money can only improve what they already have made without it.
5. Distribution of the tokens
The amount and initial price of the tokens. It's good to look at how much the developers value their own product. Are they giving away enormous amount of coins for very cheap price or are they thinking about economy and the market and aim to distribute the coins reasonably and have already thought about later factors and introducing the coins to the exchanges.
6. Market demand
Is this project really needed? Will it be better for a world if they succeed? Is there anyone out there that will actually use it? These are the questions that need to be answered. I know it sounds cool to invest in this new super innovative tiny waterproof smartwatch to monitor interests and daily life of this one particular species of turtles, but is there an actual demand for such technology? Or can this new not-yet-developed shy little search engine with customizable window color really beat enormous company like Google?
7. The transparency
And finally the most important in today's digital world. Blockchain technology allows us to finally feel secure and anonymous, it's impossible to counterfeit data that's stored on it. A company that aims to keep do all accounting and keep all the information on the blockchain has nothing to hide, and this is a good sign that this project is to be trusted with your money.
However, no matter how thorough you are when choosing ICO to invest, it's still impossible to eliminate all the risk involved in this kind of investment. It's always good to invest money you are willing to lose, as no one ever knows if the project will succeed. But with the proper selection you can eliminate most of the threats and in the worst case scenario leave the project with some % of loss, but you can end up multiplying your initial investment even hundred times!
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