Key points to look for before investing
these points may seem basic, but unfortunately there are still some investors who are ignorant of these key points when you search and investigate these processes before placing bets on the growing number of projects in the world of encryption. There must be a set of criteria that the investor monitors before considering investing in such a risky environment, regardless of the small size of the investment. The following are some of the critical criteria that must be taken into consideration when assessing any support for an initial currency "ICO".Negligence of any of these factors may result in significant financial losses.
Team work based Rawa new currency
Credibility is very important. So who should know who are behind these projects and how their career looks. This is often identified by the record of individuals or organizations associated with working with this project. Where investor billionaire Warren Buffett often says, he invests in departments rather than in companies. A wonderful team is very important, and it can make you a billionaire, while a weak team may cause you to lose everything you own.
White paper
Some things play an important role in forming an idea of the project-based team, from designing the logo to how to clarify the critical points in the white paper, which are supposed to be simple so that the average person can understand them. All these can determine the level of commitment of the project team from the outset.
Currency support
How much is total support for this currency? Is it by the founders and senior investors? What is the rate of inflation? Will the currency be given to the founders immediately or after a period of time? All of these questions are vital questions because they can greatly affect the currency's success. So that the right answers can increase investor confidence. One of the reasons for the success of the etherium coin is that its founders have consolidated it over a period of three years. Some investors also use this information to develop their return on investment.
Future project plan
How do they plan to implement the project? This is one of the important questions to look for.The timetable must be realistic and consistent with the overall plans of the project as stated in their written written papers. The other important question is what will happen after their initial goals are achieved? What is the next step? Do they have a plan for the future? Are they sufficiently capable of anticipating potential future problems? In some cases, investors tend to overlook certain aspects when starting startups and instead focus their attention on what happens on digital exchange platforms. But this is likely to change as more questions about initial currency support (ICOs) are being asked, as well as new projects that offer ideas better.
Usage status
Of course, this is something that is undoubtedly the most important as well. So investors have to ask themselves exactly what this currency will do after its production, and where can its popularity reach? The currency has no value if no one wants to use it, no matter how well-established the team is, whatever its design is exceptional. So the investor needs a clear picture of what the project is. It is very unfortunate that after the process of supporting the initial currency, we see that there are still some investors who ask basic questions in chat groups.
Communication between those who on theproject and investors
In many cases, it is usually indicated how much the project will achieve - both internally and externally - when it is fully operational through communication between the sponsors and investors who receive prior to the ICOs. While some investors complain of low communication in terms of marketing and updates by the project-based team, the manual usually exists long before the project is launched. On the other hand, some teams are now employing celebrities in their marketing campaigns, so investors need to be able to distinguish whether this is a fantasy or just a way of fraud by the team to get the attention needed for a great idea. There are many other unique factors that must be taken into account, depending on the investment method and individual priorities. The above questions are not intended to be exhaustive, but merely a starting point. In other words, an investor must conduct extensive research before making a real mortgage.
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