Prospective ICOs: how to avoid mistakes in cryptocurrency investments
Currently, ICO investments are coming closer to the gold rush. Investors of the most successful ICOs estimate profit in dozen thousands of percent. But the risk to lose all investments is also high: according to the experts, up to 80% of conducted ICOs deceive innocent investors. 20% of the rest not always reach a stage of commercially successful product.
Course for novice investors
Those starting out ICO investments would definitely like to find a brief and informative guide like “Top 50: most prospective ICOs of 2017”. But making such a list is impossible due to a range of reasons:
- The ICO market is rapidly changing. Information gets out of date until it is collected.
- Startup life journey is impossible to predict. There is no guarantee that a company will become successful and bring profit.
- Tokens, like shares, can be reliable but with low profit or highly profitable but with a high rate of risk.
New ICOs appear every day and some of them exist only several hours (for instance, Bancor startup, having collected around $153 million in 180 minutes). Thus, as the phrase goes, we want to teach you to fish rather than give you a fish: in other words, to reveal where to find information about new startups and how to choose proper ones for investments.
Knowledge and caution are power
One cannot invest in ICOs successfully, drawing a bow at a venture. This activity requires deep knowledge and analytical effort.
You can find out which of cryptocurrency ICOs are the most prospective on expert sources: blogs and information resources for investors. For example, the icorating.com website publishes the relevant ranking of all projects, while icoinvest and @DeCenter Telegram channels discuss up-to-date information about new prospective ICOs.
You may rely on your knowledge and intuition instead of experts. In this case, you should monitor information about new projects and analyze it, including assessments of company’s market position, its offer and tender. Engagement of third parties (independent agents) is one of distinctive features of the honest ICO. They monitor how the company performs its obligations and control appropriate expenditures.
Even if you are 100% sure in the project, do not invest too large sums in a single ICO campaign. You decrease risks while sharing investments among several companies.