With three ICO main sales happening every day and hundreds of other ICO projects being planned every hour, it is natural to get inclined towards investing in a promising cryptocurrency.
Effective crypto community management by the owners would make you want to invest in every ICO, but you must be cautious before you spend on a project. A majority of these projects are either scams, or they do not have enough potential to give you a substantial return on your investment.
Therefore, instead of falling for the telegram community management tactics of the owners, read these rules that you must follow before investing in an ICO project.
Don't take too big a risk: Investing in a cryptocurrency is a lot like investing in a lottery ticket, except that here the stakes are too high.
No matter how much research and effort you have put into understanding every facet of the project, it still a gamble. Therefore, there is always an element of risk. As an investor, you should try to stay away from such threats. Invest what you can afford to lose. Going bankrupt or falling into massive debt is the last thing you would want from an ICO project.
Go through the white paper: The ICO white paper can act as the most significant advocate for an ICO project. Scrutinizing the white paper can help you catch every red flag in the project unless the owner of the project has enlisted the help of a professional ICO white paper writer to create the white paper for ICO that he is planning to launch.
Read the white paper to understand the merits and demerits of the project.
Don't fall for scams: Make sure to not click on random links on social media, emails, and blockchain community management groups like the buy telegram members, Reddit, etc.
Also, you might have come across Twitter profiles of certain people who claim to give away cryptocurrency for free. Remember nothing is for free; stay away from such people.
Backup and secure your wallet: Write down the private keys and other essential information that you might need to recover your account.
Don't ever share it with anyone. Activate your 2-factor authentication. Doing so will make your wallet more secure by adding another level of security to it.
Re-verify your actions: Always make sure that you are sending cryptocurrency to the correct wallet.
Ensure that the Ethereum that you are sending reaches an Ethereum wallet and does not end up in Bitcoin wallet. You will end up losing all your funds if you do that. Also, check for the right account, your cryptocurrency must not end up in somebody's wallet, who has not been expecting it.
Once gone, there is no way you can recover your cryptocurrency.
Although there are a few risks associated with investing in an ICO project, the prospects of investing in the right project seem very appealing. Running thorough research on an ICO project will help you determine which deal you should spend in, thus safeguarding your interests as an investor.