5 tips when investing in ICOs

5 tips when investing in ICOs

By darianosch | Crypto Trending News | 14 Oct 2019

Did you invest in an ICO? If not, that's not so surprising, simply because it can be difficult to distinguish a good ICO from a bad ICO. There are many reasons why most ICOs fail. However, there are some indications to warn you about a bad investment choice. Let's go over a few tips that will help you to reduce risk by investing in a bad ICO. We should also be aware that there is a big difference between a scam ico and a bad ICO.

The team seems to be less experienced than it should be.

ICO investors should look for well-known advisors in the team of investors before investing in an ICO. Unless you're sure you can trust the company with your money, don't go for it. How can you find out? By simply using the familiar Google. Are they on LinkedIn? What do the profiles say? Are there well-known financiers or experts? If so, how much experience do they have in cryptocurrencies? More importantly, which other ICO's have they been involved in? If you have no one with experience, no one with authority in the field and no one from a comment about the team, you may invest in a bad ICO. This is also one of the signs that an ICO is a scam.

What others are saying

Many people use the ANN-thread on sites such as BitcoinTalk.org. This is the largest (currently) forum for announcements and discussions about cryptocurrency. Explore these forums and see what other investors say about a particular ICO. Often the developers themselves answer the questions and participate in the forum. However, if there is no answer, it is likely that you are at risk of investing in a bad ICO. One thing that often emerges from such discussions is an answer or a lack of a reason why an ICO is needed. If it really is a way to get easy money or makes it clear that this is the only function of the company and its ICO, stay clear.

Project status

To know if you are investing in a bad ICO, or at least a risky one, take a look at the stage of the project. Is it on the level of the white paper (i.e. theoretically)? Is it in the written code phase? If you see a total lack of support from ICO before the sale, this is another warning that you risk investing in a bad ICO.

Problems with the hard cap

Open cap means that investors can submit endless amounts of money to the ICO. The higher the number of coins in circulation, the less unique your coins can become later. As an expert warned about caps: "Because ICOs become mainstream in crypto-land, huge amounts are collected... Bancor has raised an astonishing $150 million in just three hours, which hasn't paid off for investors. in capless ICOs. "But hard caps that are big can also mean problems.


When you see a lot of Google and Facebook marketing ads and banners, especially when they make a lot of beautiful and profitable promises, this is a red light. It's a clear indication that you shouldn't put your hard-earned money into that system. Commercials against the intrusive.

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