Check-list of a competent investor

Judy Rubio

Blockchain has taken over the market and many companies get on board with it. The record-keeping technology allows company to make more money, while providing transparent and reliable solutions for their clients. It has untapped potential and is able to bring attention of previously unattainable investors. Learn how to properly invest in blockchain to make a profit.

Some people, especially non-believers in cryptocurrency, treat investing in blockchain as a way to quickly make money and bounce. And of course, such an interesting technology brings a lot of attention to itself and gives opportunity to earn. However, if all you want is to make easy money, investment often turns into losses. Get acquainted with the recommendations that will help to make financial investments in the blockchain correctly.

What to consider when choosing a blockchain-project 

According to statistics, only 3% of investors in blockchain startups earn on them. To be among them, you must choose the right project. Evaluate the available options for the following parameters: 

  • Team. It is good to pay attention to each leading participant of the project. For example, do they have experience, what startups they have already successfully implemented, how well do team members know each other? It is important to get acquainted with their plans for the future. Maybe someone is involved in other projects and after the ICO placement will leave the team
  • Project. This is the second most important point. Get acquainted with the history of the organization, the territory of its registration and the budget of the project. The smart contract implementation platform and the product development stage are also important.
  • Approach to market promotion. It is necessary to study the marketing channels used, sources of customers. It is good that the founders of the blockchain project have authority in their industry.
  • Market analysis. Take the time to gather information about the market in which you plan to operate the platform. Do not rely entirely on the information provided by the company. Better double-check it. Dishonesty should immediately alert.

These are the most important points to consider before investing. In the article "Effective investments" you will find a list of promising projects for investments.

What else to consider

Make sure that you get your hands on every piece of information available for the project analysis, you will thank yourself later. For example, it is good to know about the blockchain technology used. To do this, you can use the profile forums. In Whitepaper, all the details of the future work should be clearly and unambiguously described.

Regarding ICO, you can find out the following:

  • How tokens are distributed
  • How many digital assets have been issued
  • What kind of tokens are used
  • Which wallets are supported
  • Has the listing been made on crypto exchanges 

Information about investors is a very interesting and important metric too. For example, you can find out whether there are institutional large funds among them. If the project managed to get their attention, that is a very good sign. Also, an undoubted advantage is attraction of large investments, even if they are made in small amounts by millions of users.

Be critical of the information that you are given. Do not be an easy prey for frauds. Never rely solely on the words of a blockchain project developer. Before investing your money (especially if the amount is impressive) it is important to examine in detail the information, including third-party resources. Our portal provides practical recommendations that will help to recognize scammers and amateurs. Read other articles and you will greatly increase your chances of success!