ICO or Initial Coin Offering is fundraising mechanism for a new cryptocurrency offering. Here, the future crypto coins will be traded for cryptocurrencies which have immediate and liquid value. A certain percentage of the tokens will be kept for the company’s needs while another percentage will be sold to the ICO participants.
If you are a newbie and is wondering how to trade cryptocurrency or invest in an ICO, this article will be of great help. To get started, below are some of the things you want to keep in mind when looking for an ICO to invest in:
Check Company’s Team Composition
Do a background check and know everything you can about the team behind an ICO. Start from those who have developed the ICO to everyone involved on the advisory board. Check if their ICO members are reliable and have considerable background in the industry. This step is pretty easy to do since you can search for their names online to find their LinkedIn or other professional profiles. You also want to check if the members have any projects or significant experience related to the crypto space. If they do not have online profiles or have limited details, then this could be a red flag and a sign for you to look for the next company.
Evaluate the Project’s Stage
See if the company is only on a beta stage. If so, look for feedback from their other users. You can also check their whitepaper to learn more about their plans for the project and its functionality. Choose ICO projects that have some lines when it comes to working code. This is because venture capitalists support projects from the early stages. You can look for this info on the main page of the ICO’s website or their whitepaper. Most of the time, it is considered a good project if there are established crypto VCs that are involved.
Social media is just one of the platforms you can use to a background check. These ICOs also use Facebook, Twitter, LinkedIn, and Reddit to promote their brand. This can be beneficial when you are evaluating a project. You can see how often they update their social media accounts and how they interact with their community. If you want an unbiased review, you can even reach out to the community members to ask their opinion about the ICO.
Check their Whitepaper
A common mistake many people do when investing is that they don’t read the ICO’s whitepaper. As an investor, you want to take some time reading the white paper as it contains all the important information you need to know regarding the project and the ICO. This is where you can weigh the pros and cons of the project. If something is not clear, don’t shy away from doing extra research.
If you want to learn how to trade cryptocurrency or take your career in bitcoin trading in Singapore to the next level, contact Crypto Trader today. They offer crypto courses designed to help you learn about proven and tested strategies straight from a crypto-trading expert. Check out their website for details.