Learn Investing in ICO – a form of buying and selling money from a project
ICO investment – a form of buying and selling coins from a project. You buy coins from a project and wait for the price of the coin to rise and sell it again to make a profit. For a coin / token of an ICO project to be traded, that coin / token needs to be listed on major exchanges such as Binance, Bittrex, Bitfinex, Kucoin …
Investing in ICOs brings high profits but carries a lot of risks. Not every project is successful and profitable for you. You can completely lose your investment if you choose the wrong project. So consider carefully and only use the amount you are willing to lose to invest.
- Whitepaper: also called prospectus, is a document to introduce all information about the project to convince investors.
- Hard cap: The maximum amount a project can call. Calling will end as soon as this threshold is reached.
- Soft cap: The minimum amount a project needs to develop. If the amount of capital raised is less than this threshold, the project will be stopped and refunded to the investor.
- Private Sale: Private sale for big investors and investment funds.
- Public Sale: open to the public, anyone can join.
Crowd Sale: same as public sale.
- Bonus: extra bonus when you buy from the first day of sale, maybe 10% of the total token you bought or more.
- MVP: Minium Viable Product – the minimum viable product to work. An existing MVP project will attract more investors than a paper-only project.
- Prototype: sample products, similar to MVP.
- Whitelist: register on the token waitlist.
- KYC: identity verification to prove you’re not from prohibited countries. You usually have to upload your footer image with your ID / Passport photo.
- Platform: the platform on which the issued token operates.
- ICO Listing: general website and evaluation of ICO projects, for example ICOBench, ICODrops, TrackICO …
How To Evaluate An ICO Project
To evaluate whether an ICO project has the potential or not, you need to analyze many factors: from the project idea, the development team to the number of tokens issued, the price of a token.