While ICOs have proved to be life changers and investments in it have reaped a great profit, many individuals are still confused about it mainly because its concept seems ambiguous. Well, for the uninitiated, here is what an ICO investment is all about, and the ICO marketing checklist that you need to be aware of, and seven tips for making money on ICO investments.
What is an ICO investment?
An ICO investment is the act of investing money or cryptocurrencies in an all-new crypto project. This is done with the aim that it is going to produce good returns. The following is the checklist and tips you need to follow to make sure you are in the right direction when making investments in ICO.
1) Don’t forget to do your research
For this investment, research is very important. Pay attention to the ICO project, the project concept, the company and people responsible for the project, and its market value and analysis. Also, look at commercial applications and ask as many questions as you can.
2) Do no let go of bonus tokens
The most attractive thing about ICO competition is that you can obtain a good bonus on these investments. A majority of ICO companies provides bonus coins to their early investors. It is essential to secure these bonus tokens. They may offer you the best returns for free. The more involved you are in the ICO, the more bonus tokens you can collect.
3) Make your trade in installments
It can be hard to foresee the manner in which cryptocurrency is going to fare in the market. This can be very true when you obtain a cryptocurrency in the ICO offering. This happens because the currency is very young so it requires time to make its presence a reality. As an investor and so that you are on the safe side, see that you buffer every one of your investments.
4) Understand the risks involved
Rather than getting too technical about your investments, you need to look at the basics. This includes whitepaper, the product idea, the company, the team, and the market. These factors tell you everything you have to know before investing in that coin. You have to understand the risks that come with making this investment. If the risk estimate is too high, see that you steer clear from the investment. While analyzing the risks is imperative. Do not overthink it.
5) Invest in good chain
See that you pick a reliable and promising ICO to invest your money into. To do this, conduct elaborate research about the company as well as the project. Following this, understand cryptocurrency and how it works. This gives you an understanding of how it can expand in value as well as the risks that come with it. Moreover, commercially speaking, can real applications of the coin be used in the market? This helps you know that your investments can actually earn returns.
6) Collect information on promoters
Look at the promoters on the project and see what kind of background you get on them. If the founder has led his company to bankruptcy, they may not be reliable. The right founders are going to come up with solid projects as well as build good press about them.
7) The cycles of hold, sell, repeat
The cryptocurrency’s value expands only after it hits the market. This relies on how valuable and realistic the token concept is. After this, it obtains value after looking at demand. After this, you can start trading your coins for other established cryptocurrencies. Do not sell all of your tokens. Before selling them, withhold at least 50% of the tokens for a few months.
Follow this ICO marketing checklist and tips and you are sure to make money on your investments.