Choosing Promising Cryptocurrency
Bitcoin increase over the last few years has made many traditional investors inflow millions of dollars into the cryptocurrency market.
Now many newcomers are seeking for the “next bitcoin”, i.e. a currency capable of augmenting considerably initial investments ten- or hundredfold even. To date there are hundreds of alternative cryptocurrencies called altcoins.
Quite often it is ICO that allow for increasing invested capital (with considerable risks involved either). It is hard to predict which coins attract more attention and why. Yet when approached properly cryptocurrency may provide for regular income and save it if crypto bubble bursts anyway.
- Finding ICO
The first step is to find out what ICO to expect for. You may use this site for this purpose, for instance. At ICO tab you will find all required information on the most important projects of the nearest future. Rationally thinking investors may use this information to plan their participation in a project, explore and prepare capital for investing into the most promising projects.
According to the latest data, ICO popularity does not reduce at all yet sets ever new records.
- Assessing potential
By far not all ICO come into investors’ attention and raise required sum of money with most of them failing at this stage. Yet scrupulous monitoring of the market will give you a clear picture of possible coin cost in the future.
- Unique idea
There is a number of ways blockchain can be used while original ideas arising daily. Currently the market is stuffed up with currencies that just reconstruct the pattern of “decentralized money”. Bitcoin was a revolutionary concept at the moment it appeared, today all cryptocurrencies have got this functionality. Just look for something that gives a fresh impetus for the old concept or sets ambitious goals. If the project’s website has speaks of something unclearly or ambiguously just keep away from it as this may well turn to be a sheer scam.
- Coin offering
A smart contract that manages coin offering has got certain rules like how many, when and to whom coins will be available as well as whether unrealized tokens will be nullified. Generally the greater coin deficit with regard to its offer, that higher its cost at the market. Check how many currencies will be sold out during the closed presell (what is the bonus), during ICO time interval, etc.
- Planned Exchanges
The most sound success criterion for any coin is listing feasibility at exchanges. If Binance, Kraken or HitBTC declares accepting a coin that is still at the ICO stage, this is a welcome sight.
- What Blockchain does the coin use?
New ICO must be launched at the existing blockchain if they do not intend creating their own one. Blockchain the coin is based on defines which of the already existing currencies will be used for ICO. For instance, a project using Ethereum-blockchain will require Ethereum for ICO currency either. It means that it will be exchanged for ETH only, not for any of the other ones. If it uses little known blockchain like NEO, this may restrict its price.
Have a look at the team, whether they’ve got experienced with cryptocurrencies and target industry. Each legitimate project publishes a short CV for each of its member, its record and personal functions. Most preferable is a large group of the industry’s veterans.
- What about add-ons?
White paper is by all means a crucial point for fundamental project. It must be comprehensive, detailed and clarify the goal and the technology of the coin. Other add-ons may include videos, blog posts and other content from the team.
- Consult with community
Finally, community is among the most principal marks of the coin potential. Cryptocurrencies tend to have its supporters who gather online at sites like Reddit or Bitcoin.org. Github is another perfect option for people going into technological issues of blockchain as that is where they can see the code directly and learn if the project is programmed well. Social media are less important yet may also prove to be useful. Attention a coin gains at such sites is closely related to its would-be price as it is investors who discuss it more often. Beware of bounty-programs, however, when startups favor investors making positive reviews in social nets. Be up to a thing or two and don’t take others at face value.