Crypto-currency may still be in its early stages of development but with over a 1000 already up and running since Bitcoin first came online back in 2009, it has never been harder to make your decision and take a plunge!
With so many enticing options in the market and with newer cryptos being created frequently, the world of block chain based currency is ever evolving and it is up to us to help you keep up!
So we’re going to go ahead and talk about 5 important rules to keep in mind while making that investment!
Is the block chain still in Vaporware?
If yes, then be wary! Block chains that are already in their production stage are definitely a safer bet than just the charm of a promising concept. If you are new to the world of crypto currencies know that exit scams are becoming a real problem with inexperienced investors becoming victims to fraud during or after the ICO period.
Do you see any prominent investors?
If you see any of the big guns investing, then you should probably follow suit because they will definitely have done their research before joining the bandwagon.
Know the difference between actual users and potential ones
This is where your own research comes in handy! Find out how many actual users the block chain hosts and don’t just fall for over-hyped proclamations with little substance! Sites like DappRadar make this task easy for everyone involved.
Liquid or illiquid?
You can’t cash in on an investment if it isn’t tradeable, therefore be wary of ICO’s that have yet to get themselves affiliated with trustworthy and reputable exchanges. With over 200 exchanges to currently choose from we don’t see why you should settle for a coin that hasn’t been listed yet!
Know the project’s developer base
The larger the web developer based and community, the better the guarantee that more people are taking this venture seriously. Not to mention the greater potential of the project’s application as there will be a continuous process of growth and improvements in technology.