I decided to state a few key points when deciding whether to invest in cryptocurrency or an ICO or not and which one to choose. These are just a few main points that have been emphasized over and over again but they will definitely help you to make a more educated decision when it comes to investing.
PROBLEM & SOLUTION
Make sure you understand exactly what is the problem they are addressing and how significant this problem actually is. Does their solution to the addressed problem make sense? How hard is it to actually develop/create this solution? Can this solution even be used? How far are they in the process of development of the core product/service?
TEAM & TRANSPARENCY
Is the team capable of implementing this solution? Do they have enough experience and knowledge to pull this off? Check their LinkedIn profiles make sure they are being transparent about who they are and what are their prior experiences. Is there something missing in their team (more developers or financial experts for example). Is there a code on GitHub you can check out? Has anyone already used their service or saw their product before? What is the name of the company behind it and are they registered and a legitimate business?
MARKET & COMPETITION
What are the industry and the market segment they are targeting? Is it big enough? Is the solution they are proposing unique, if not check out the competition and try to see if their proposed solution is better then the one the competition is selling. What about the technology, is their solution better technology-wise?
BUSINESS PLAN & ROADMAP & ROI
Do the business plan and the roadmap make sense? Is the roadmap realistic? How much money do they actually need and how much they are raising or have raised already? How exactly are they spending their money (or will) spend it in the future? How do they plan to make money before the investments run-out? Do investors have an incentive to buy /hold their cryptocurrency? What is their plan to make investors money back and do they even have a plan?
There are of course a lot of things to consider besides those stated above, but if you can answer all those questions above, you’ve done better due diligence than most of the people buying cryptocurrencies and getting into ICOs out there.
Make sure to always invest only what you can afford to lose. May the crypto-gods be with you!
Peter, ICC Team