In recent years the top investment option for most people has been cryptocurrencies. Some experts like it and some do not, but there is no denying that the popularity of cryptocurrency investment is increasing rapidly. Many new cryptocurrencies are launched every month and with them come a series of various initial coin offerings. The first quarter of this year has seen a slight reduction in the growth, but the number of people looking to invest in initial coin offering is still on the rise.
With such an enormous growth and the kind of Technology involved in the manner in which cryptocurrencies work, for any beginner finding spam would be a challenging task. Keeping up to speed with the various terminology used against these cryptocurrencies is in itself tough. But to be sure that you are investing in the right initial coin offerings, it is essential that you collect enough knowledge.
Below are some of the steps that can help you stay away from the spams in the market-
- Try to get as much information as possible about the development and administrative team of the coin offerings that you are planning to invest. The success of any project is very much dependent on the way it is handled by its team. A lot of spammers create fake account to attract investors and even the export could get challenge in identifying the fake profile from the real ones. Use your due diligence to be able to identify the real team.
- Put in a lot of time and effort on the white paper. Every initial coin offering build a business model of the way it will operate and make use of the initial investment. The white paper should cover all the major topics including the scope, strategy and goals of the project. If you find anything that is to flashing or unrealistic be cautious and raise questions. Read the white paper in detail and ensure that it meets the legal and financial regulations.
- Keep a track of the token sale. If you see the number changing in an unreal manner then it would very much be a scam. Most of the initial coin offering are in the form of simple token that are given to the customer for getting Investments. Many a times the scam websites show the number of available tokens reducing at a fast pace just to create urgency among the potential investors
- Perform an assessment on the feasibility of the project for which the initial coin offerings are required. The company should not only have a concept that can get them Returns but also they need to have a solid plan to execute towards completion and also to control when something goes wrong.
Every new investor should get as much information as possible about the way initial coin offering and cryptocurrencies work. Attend a session of blockchain Technology to understand the critical concepts for that you know what are the risk involved and how to select the right investment option. Websites such as ICObuffer can prove extremely useful to get such an understanding.