10+ Important ICO Tips To Consider Before Joining ICO

Table of Contents [Show]

Read Also:

ICO, i.e. Initial Coin Offering or Initial Coin Offering, is a venture of a startup company that wants to raise funds to develop and maximize the project that has been planned by offering investors a token or their coin which is valued by cryptocurrency.

Many people are very interested in investing their money in the cryptocurrency world such as Bitcoin, Ethereum or other coins (Altcoins). There are also various forms of investment, such as trading and participating in ICOs. But does participating in ICO guarantee profits? Of course, in every case there must be risks and benefits. 

ICO is an alternative way where there is low risk, high reward. But how do you minimize the risk in choosing an ICO? There are many factors to consider when choosing an ICO to invest in. Here are 12 things to look out for when choosing an ICO.

1. Idea

Realistic ideas are needed to be implemented and must be able to solve problems. It has to be put to good use of the blockchain, not just some idea that didn't work in the past, and now looks good for use on the blockchain.

2. Teams

It takes a team that is experienced enough to be able to implement the vision. In realizing a vision, a team that has high credibility and quality is needed so that the idea can be carried out properly. How do you know if the team is experienced enough and has high credibility and quality? You can check out their LinkedIn profiles, which list all their work and education history.

3. Advisor

An advisor must be senior enough to have a positive impact on the project. They must be listed on a LindkedIn profile, which can attest to experience and connection with the projects he has worked on. Advisor profiles with less than '+500' connections listed on LinkedIn can be said to have low credibility.

4. Hard Stamp

One that has a big impact on investment is a hard cap. If an ICO has a large hard cap, it can increase the risk to your investment prospects. Be aware that in the cryptocurrency world, the majority of players do not have investment expertise, many people do not pay attention to hard caps when investing, for example:

ICO A and ICO B are engaged in the same field, namely the Lending Platform,

A has $40,000,000 USD Hard Cap for their ICO

B has a $20,000,000 USD Hard Cap for their ICO

When they both enter Exchange X, the two coins have a market cap of $ 60,000,000.

Which one is more profitable for you?

Even though the Hard Cap of an ICO is important, it is not the only indicator of whether an ICO is profitable, it is also necessary to consider the Team, Partners and other information such as Competitors to determine whether an ICO has overvalued itself.

5. Hype

We can only count users from Telegram and sub-Reddit followers. In this case Twitter & Facebook are not included in the count, because the majority of their followers are only looking for free airdrops not for investment interest.

6. Products/Goods

An existing product is a plus, but some ideas that are too new and common can also be too easy to understand and thus have a positive impact on their whitepaper.

7. Target/Road Map

Consider whether a road map looks realistic or not, is it too ambitious? Is it possible? It would be better if a road map had been started several years ago.

8. Competition

The prospect of profit from their investment can be seen from the products they offer, as well as comparing them with their competitors. Which brings more profit opportunities?

9. Token Sale

The value of token sales has a benchmark, normally token sales are 50%, less than that can be categorized as risky, but more is better.

10. Marketing/Marketing

By employing a professional marketing can increase the confidence of investors to invest in the company. This is one added value that has a big impact. Marketing methods are also not limited to writing articles on well-known websites, airdrops, bounties and videos.

11. Bonuses

Bonuses are no less important to know in making the decision to buy an ICO for me. Many people often don't really pay attention to bonus issues. Of course, Presale and Private sale bonuses are very important to know before deciding to buy an ICO.

Example:

Coin A is doing an Initial Coin Offering,

Person A gets a Presale Bonus of 25% and an additional Private Sale bonus on top of the Presale Bonus, of 50%

Person B gets a Presale Bonus of 25% and does not get a Private sale Bonus,

Then the total Bonus of person A = 75% (175% of the total Coin received with investment value)

Then the total Bonus of person B = 25% (125% of the total Coin received with investment value)

Often people feel confused why when an ICO goes out to an exchange the price is below the ICO, this happens because people who take part in private sales still make a profit, therefore they can sell coins at a lower price and still make a profit.

12. Use of Coins/Tokens

Each Coin or Token has a different function, having a Coin/Token does not mean you own shares in the Coin/Token company, but there are some ICOs or projects that are already running that have a token function that distributes dividends to their Coin/Token holders. Note that the Coin/Token function is very influential on the ICO prospects.asdada

Above are some of our tips on things to pay attention to when choosing an ICO, but every investment decision is an individual decision and the responsibility lies with each individual who makes the investment, remember to always DYOR, “Do Your Own Research ”.