How not to be mistaken with ICO

Investing in ICO can be extremely profitable for an investor. And for companies this is also a favourable alternative, which helps them to raise funds for new projects.

However, investment in ICO can be a risky proposition. Investors need to adequately assess the market opportunities to avoid choosing a "failed" token, which can cost them big money.  You must constantly monitor the current market and evaluate each innovation in it.

To reduce the investment risk, strategic thinking and a sober approach are needed. And although you cannot completely eliminate the risk, you can mitigate it through proper planning. Namely: it is reasonable to choose the correct crypto currency for investment.

Four rules are reviewed below that you must necessarily follow before investing your money in the ICO.

Know what exactly you are buying

First, you must fully understand what exactly you are buying from the company. As a rule, investors understand that these tokens are equivalent to vouchers, certificates or other documents confirming ownership of a specific asset of the company. The more important question is: "What kind of assets do you buy?"

You should know that there is no generally accepted mechanism or protocol for ICO, and companies can sell everything they like. As a rule, they sell the right to a part of their income (dividends), the ownership of a certain part of their intellectual property or property on an internal resource. So try to find out what your token is related to.

Learn more about the company
 
Starting a trade with a company, you become partners with its employees. Therefore, your confidence in them should ideally reflect the level of trust that you invest in the whole project.

All information about your partners can be found on the company's website or in the documents that are usually attached to the newsletters. If such information is not available, then you should think about investing.

Understanding the importance of SSL certificates

The SSL certificate is also an important detail that requires your increased attention. When you open a company website in your browser, you should see the green lock icon. It is on the left side of the address bar. If there is no icon there or it is there, but red, you should immediately leave the web page.

Check ratings
Before investing in any crypto currency, it is highly recommended to check the ratings. Many agencies have already rated ratings for you. You should only carefully evaluate them. This gradation is usually made on a risk scale from negative to stable. This is a very important point, because without it you have great chances of getting caught on scammers.
 

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