ICO (Initial Coin Offering) Roundups Infographic

ICO Roundups Infographic

Smart Investing With ICOs

When it comes to ICOs (Initial Coin Offerings), there is a lot of information out there – some of it useful, some of it wrong, and some of it downright dangerous. The fact that ICOs let you get in on the ground floor of a company developing a brand new idea is considered one of the top advantages of this investing.

And investing in the right ICO could net you a lot of money. What the pundits play down, though, is that most ICOs will fail. That’s right – not just one or two but most are going to fail. That’s why btxchange.io has worked hard summarising the available info.

They have broken it down into manageable sized chunks that you can read at your leisure below.

You Could Lose Everything

But, back to ICOs as an investment opportunity – should you include them in your strategy or not? The answer is that you probably should, but you do need to realise that you could lose your whole investment.

You are investing in a company that has not yet even been established correctly. If things go bust, there are no assets that can be sold off to repay creditors or investors.

So, sure, consider investing some money, but make sure that it is money that you won’t miss too much if it is lost. It should be money that you have spare, and that is not earmarked for anything else. Keep your hands off your child’s college fund.

Don’t Borrow To Invest

When it comes to this market, this is possibly the best advice that anyone could give you – never borrow to invest here. It could mean that you miss out on a great deal, sure, but it could also say that you end up having to pay off the debt without having any tangible reward for it.

Do Your Research

Some ICOs look great. They have identified a genuine problem that needs solving, have found a great solution, and have gathered together the perfect team. You have read through every section of their whitepaper, and it all sounds great so that you can invest, right?

Wrong, relying solely on the whitepaper and website provided by those proposing the project is a rookie mistake. I could go online and pretend to be a rocket scientist working for NASA, but that wouldn’t make it right.

The saying, “Trust but verify” applies here very well. So, go online and google the team members. Have they done work in the field? Are they on LinkedIn, and does their resume there match up? Have they published papers or worked on other development projects that you can follow up on?

What about their work history? Does it make sense for them to be involved in this project? Does everything add up? If you don’t feel it does, don’t be scared to email them directly through LinkedIn or an email address that you have looked up yourself.

Remember, don’t take any of the info on the company’s site for granted. There are quite a few scam artists out there, and they have been enjoying the lack of regulation within this sphere. In some cases, they even list team members they know will lend credibility.

Unfortunately for investors, these “team members” probably don’t even know they are involved.

The next thing to do is to do some research into the problem they are solving. Are they the first people to identify it? That would be a little strange if that were the case. They might be the first people to come up with a workable solution, but that is different.

Also, if they are the first lot of people to identify that this is a problem, is there a need to find a solution? How many people’s lives are being affected by this? And, consequently, how many people would be willing to pay to use the solution?

Look at it from a prospective client that will need this solution. Is it enough of a pain point for them to want to find a way around it? If so, what other solutions have been offered in the past? Why is the company’s proposed solution so much better?

Next, look at the solution that the company is suggesting. Does it seem realistic? It might be a great idea, but can it be applied in real life? Let us look at a ridiculous example here to consider this more thoroughly.

We know that methane gas production is causing severe issues with our ozone layer. The gas, if we can harvest, can be useful as an energy source. To this end, there has been a pilot project in the United Kingdom that allows people to dump their garbage into a specially designed bin.

As the gas builds up inside, it is funnelled out and used to power the town’s street lamps. It is a workable idea. Now let’s get to the ridiculous. I read a blog on the topic, and the writer suggested that the methane released by cows and other livestock could be put to much better use.

The idea itself is correct! If we could harvest that methane, we would be solving two problems – energy production and pollution. However, think about it a bit more carefully. How would we collect the methane from the cows?

Are you going to volunteer to try and harness up receptacle to collect the gaseous emissions in? Or perhaps you could run around all day behind them? Neither option is convenient. So, while the idea behind the collection is sound, the actual implementation of that idea has a long way to go.

And that is what you need to consider with the ICO as well. Will the idea work or is it just too impractical?

You need to determine whether or not it makes sense for you to hand over your hard-earned money. If you are willing to put some time into researching your options, you stand a much higher chance of success and will be better able to sort through the BS.

Top10FX.net Editor

Top10FX.net Editor

Welcome to Top10FX.net. Follow this website for the most trustworthy Forex broker reviews and last minute financial trading news.

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