There is nothing called unadulterated fun. When it comes to the digital world, it is more caution. For a new regime like Cryptocurrencies, this is a must.
The world of cryptocurrencies is choc a bloc with innumerable launches every month. Currencies are being launched by the dozen. Investors are in no mood to relent in spite of the fact that 2018 had been a cruel year. ICOs are the buzzword for newer opportunities and this works both ways. Imagine if an investor is ready to throw money on a highly speculative cryptocurrency, what is the kind of leverage a scam star would get by manipulating the process.
In a world of fraudulent tokens and manipulated ICOs, it becomes pertinent to absorb as much knowledge as possible or even necessary.
However, the digital economy is growing at an incredibly rapid pace. Cryptocurrency in arms with blockchain is not too far behind. For new investors, it becomes quite daunting to fathom the numerous terminologies that he or she faces whilst dealing with tokens. Even though this is still no guarantee towards not falling into a trap, it is certainly advisable that preliminary research is done before diving into crypto indulgence.
Let us quickly go through a checklist which is going be a handy accompaniment for the intrepid crypto-enthusiast.
Research the team
The most important part of investing in a project is knowing who all are at the helm. They are the drivers of the cryptocurrency. The leadership and the admin team are the single most factor differentiating between a successful ICO or a has been. The cryptocurrency space is staffed with notables. Names like Vitalik Buterin of Ethereum can make or break projects. Scammers looking for opportunities end up creating fake biographies and team details to lure unsuspecting investors. The key here is to scourge social media for individual information
After the team, if there is anything that can influence the success of the project is the whitepaper. The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project. Whitepapers can provide incredible insight. A flashy visual of a project is by no means a sound decision-making example. Pour into it and look for scopes.
A cryptocurrency with strong fundamentals and well-established objectives has the biggest possibility of outlasting the competition. Glitzy launches of ICOs notwithstanding, if the aim has properly been justified, investor interest will soon sputter out.