5 things you need to consider before investing in an ICO - Brought to you by the ICO Ninja.
In investing, what is comfortable is rarely profitable – Robert Arnott
The cryptocurrency industry is an extremely fast moving and volatile place. With rumors that BTC could hit $1,000,000 as early as 2040 there’s no wondering why herds of inexperienced investors are flooding the crypto market looking to transfer their fiat currency in to BTC or other established cryptocurrencies.
And with new blockchain start-ups launching their ICO opportunities almost every day. Investors like me and you need to be certain that we are backing genuine businesses with a passion to deliver their vision to the world.
For that reason, we at [The ICO Ninja](www.TheICONinja.com) have created 5 things you need to consider before handing your hard earned cryptocash over to an ICO.
- Does the start-up have a working product? If not, do they at least have a working prototype?
It’s amazing how many people contact The ICO Ninja to tell us that they’ve invested $1k, $3 or $5k in a certain ICO. When we look closer at the start-up we realize there isn’t an actual working product nor is there even a working prototype! Too many ICO’s now are launching with some half hearted white paper, which looks vaguely similar to another ICO you were checking out earlier in the day, plus a few lines of code. The truth is, if you wanted a bank loan to launch a business you would need a whole lot more than just a few pages of ideas!
- Find the leaders of the start-up and Google them, look them up on linked in and learn as much about them as possible.
The truth is, when it comes to investing in ICO’s you’re really investing in the people behind it. The ICO Ninja promises you this. Taking the extra few moments to look in to who the main leaders and founders are will pay the biggest dividends to you. Have they been solid, successful and integral to the previous projects or not? Do your research!
- Drill down on the tech and check out the use cases.
This a bit of a technical point but it’s one which should be taken very seriously. A use case is a list of actions or events which defines the interactions between a role and a system to achieve a specific goal. Basically, what does the software do? How will this be integrated in to the real world? When you’ve looked in to this then consider who the developers are and what projects they’ve been involved with? The dev team should specialize in this kind of tech and if they don’t then at least consider reaching out to see what makes them confident in executing this project.
- Is it the right time?
Look at what the start-up is offering to the world, what problems are they trying to solve here and does the world need this right now? Some start-ups are way ahead of their time. Take Facebook for example, Facebook wasn’t the first social networking platform. There was hundreds out there before Facebook but at that moment not everyone was ready to put their life on line. Facebook launched just at the right moment. Is it the time right for this start-up? Look at the industry it operates within and consider reaching out to people within these industries and get their opinion.
- Is the team focused and in sync with each other?
It would be really tough to work out if every person in a new start-up is working in synergy of one another. Some of these businesses maybe operating in a completely different part of the world from you. However, you still need to consider reaching out to ask questions. Request a phone call or a Skype call with some of the main people at the start-up. Email them any questions or concerns you have. If they don’t respond then take that as a sign. [The ICO Ninja](www.TheICONinja.com) contacts many ICO’s for anything from assistance to interviews. Don’t be afraid to reach out because as a potential investor you MUST DEMAND quality from all aspects of the start-up.
We truly hope this helps you in your quest to make some smart investments in the crypto industry. There’s no hiding from the fact that there will always be risks to backing newly found cryptocurrencies but let me ask you think question. How many people do you know have gotten rich putting money in to a savings account or a 401k? Yeah, I thought so! Make sure you have the knowledge.
Thanks for reading and don’t forget to visit us at [http://ift.tt/2hu9C8c for free independent reporting on some of the latest ICO opportunities.
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