The Practical Ways To Identify Cryptocurrency And ICO Scams – Part 2
The second post highlights even more reasons to be considered while investing in the crypto market. Read on and get the facts right. They are interesting to be noted
Continuing From The Previous Post
The factors that determine the security of the bitcoin or cryptocurrency investment is continued from the previous post. Here the factors are examined as the investors are being more and more concerned about the safety of their investments. Hence it is here that the coins mined should exhibit a robust profile as the number of hacks, thefts, and frauds are on the rise where exchanges similar to Mt. Gox are being destroyed through hacks.
Take A Look Into The Token Sale
To facilitate the crowdfunding process any ICO will depend upon a token or currency system with legitimate companies and endeavors making the system itself as well as the progress of the token sale which is easy for potential investors to view. As the ICO is ongoing a look for the token sale figures and better than that watching the token sale over time to see how it is progressing is important. In case a company herby makes it difficult for anyone to chart the progress of its ICO there is a major red flag. Under the pretense of individual contribution addresses some scam ICOs hide their token sale progress preventing potential investors from seeing exactly how much has been raised and how much time remains in the sale. Even if there isn’t evidence of a successful sale going on at the same time in some cases this comes as an effort to generate a sense of urgency among potential investors.
How Feasible Is the Project?
Those that have the fundamental structure to outlast their competitors have the ICOs and Cryptocurrencies greater chances for success with many launches even those highly publicized ones have sputtered after initial interest faded. Relying on a company having an achievable feasible set of aims is the best chance of a successful investment. For the time being, the company should have a compelling concept as it also must be able to carry that concept over into execution over the short and long terms alike.
The issue of transparency goes along with the question of feasibility as here companies with outstanding concepts and models are likely to be more than others as they want to be as transparent as possible with the broader community. Companies with regular detailed progress reports on a company website or social media must be looked for aiming to keep potential investors up to date. Similarly, the company has a timeline for what has taken place in the development process as well as also useful to look into.
How Should You Exercise Caution?
For being fuelled by speculative investing even the most successful ICOs and cryptocurrencies are slammed as the idea behind getting rich quick on the investment is in a hot new project tempting enough to draw seasoned investors and beginners into risky areas. When you look for new investment opportunities in the ICO and cryptocurrency spaces, keep an eye toward caution and be aware that these projects are sounding too good to be true likely are.
It is better to assume that the absence of a piece of crucial information may be an attempt to hide an unsound model or concept while spending time scrutinizing every detail as looking for outside sources to verify the legitimacy of any project before investing as also ask questions that you can’t already find the answers to. Hereafter they cryptocurrency and ICO spaces thereby offer tremendous opportunities for investors who have thereby done their homework as also able to make sound investment decisions. It is therefore it can lead to a large amount of money being lost due to scams, frauds, or even legitimate businesses that are simply poorly designed and unlikely to succeed.
Finally, The Few Concluding Words
The safety measures taken up by the exchanges and wallets determine the interest of investors in them. With the growing number of cryptocurrencies each day, it is surely a complex process to determine the safe and secure investment. Hence it is here that the investors should consider the aforementioned reasons to determine the security of the investment. As SEC regulates more of the cryptos, it is better to determine which coin suits your investment. Bitcoin mining is a growing rage and since it is the most evolving technology it is here to stay. So, we are sure to bring you more on them and enlighten you with investment procedures.