For a long time, I have planned to write a review of all my experiences with ICO investment that until today I have determined to sit down to start implementing.
Admittedly, it's easy to find an excuse to postpone something, but it's hard to make a commitment to get it done.
Do you see that???
Me too, very lazy! Especially when producing a good article, it is quite time-consuming to find out information, not sit down and write immediately.
But after all ...
Information and knowledge about this field is too little, there is not really a good source of quality information for you to refer to investment.
So, I want to by recording here what I have learned in the process of learning and investing in bitcoin, you can better understand this market from the perspective of an insider, refer to a lot of information. to make their own effective investment decisions.
And it will be even better if after this article, you will be able to answer questions like:
- Is ICO investment as good as I think?
- Should I invest?
- If investing, should invest like?
- And many other questions related to ico investment, bitcoin investment ...
In the context of this article, I will try to synthesize the most complete information possible about ICO investment that I think anyone intending to participate should know.
If you're new to ICOs and haven't entered an ICO yet, I encourage you to read from the beginning to the end of this article, slowly to understand.
To remember important information, you should prepare a notebook and a pen to write down the ideas you feel interested.
After reading the article, spend 5 minutes skimming your notes.
By doing this, you will remember the main ideas better and take longer to forget.
If you're the one who invested a while, Surely you also have certain experiences of their own.
Therefore, to save time, I encourage you to skim through the table of contents of the previous article, then depending on what content interests you, you click on that content to read the correct information correctly. you need, that will be very fast and efficient.
And if you are already an experienced ICO investor, have experienced so many projects, have eaten a lot of delicious contracts and many times sml.
Honestly, I don't think this article will be of much help to you.
But I hope that you will take the time to read through this article, of course not to learn, but to teach, to help me with better points, to supplement myself. more, to share with all the beginners have more perspective on ico investment.
I would be very grateful for that!
Before I get started, there is one thing I want to talk about, that I am also an investor in the cryptocurrency market like all of you.
I'm not a financial expert. Just like you, I see the potential of this market.
However, in any market, first we will need to learn a lot to understand the rules of the game, then how to become a winner.
With the desire to help beginners in bitcoin / ico investing not to be disillusioned by unreasonably high expectations, I hope this article will help you see the overall picture, from then choose the appropriate investment strategy that brings the most profit.
The article is quite long, so I also have a PDF prepared so that those who do not have time to download it to your phone and computer can read it when you have free time. If you want to read PDF, click here to download offline!
For now, don't waste your time, let's go to the main content of today's article!
Chapter 1: Overview of ICO investment
What is an ICO?
ICO (Initial Coin Offering) is understood simply as a form of crowdfunding in which:
- The investor will give the project a sum of money.
- In return, the project will return to investors the corresponding amount of coins at the initial predetermined rate.
Before the ICO, the project will need to provide clear information such as the total amount of funds to be mobilized, the total number of coins issued, how much the exchange rate ... and other parameters to investors. understand, thereby making a decision whether or not to invest.
Why do investors want to buy an ICO?
Nobody wants to bring their money to invest but they lose. The reason people participate in the ICO stage is simply because they see the potential of the project.
They predict the coin price will increase after being listed. And so, they decided to invest with the expectation that the coin would bring them profit.
In addition, ICOs are a form of investment that gives individuals great opportunities.
If previously only angel investors or venture capital funds (Venture Capital Fund) with huge amount of money were invested in start-up start-up projects, So far, the ICO has allowed all individual investors, with a small capital of only $ 100, to be able to participate.
Investments in infancy like this will of course carry a high risk. However, if you are lucky enough to find Facebook, Amazon, Google ... next, the money you earn will not be small.
Who is investing in ICO?
Bitcoin investment In general and ICO in particular is not the type of investment for everyone.
There are appropriate people and there are also inappropriate people.
Before going into the ICO investment story for whom, let's talk about who is not suitable for investing in ICOs.
a) Those who do not have faith in Bitcoin and Cryptocurreny market
As I said above, investment is the same, first of all we need to have faith in the market first, then come to believe that we can make money from this market.
Without faith, you will not be comfortable in your investment decisions, so the investment will not be effective.
Bitcoin, ICOs are not the only form of investment, if you are afraid or uncomfortable investing in cryptocurrencies, you still have a lot of other options such as stocks, real estate or gold.
b) Those who want to dress firmly and do not dare to take risks.
I mean just want to explain the nature of the ico investment game before you decide to participate.
It does not mean that safe investment is not good. Who invested but did not want to be safe.
It is only in ICO investment that we trade high risks for high profits.
As for cryptocurrency investing, even your job hold bitcoin Or mining is risky.
Bitcoin is the largest capitalized cryptocurrency currently Coinmarketcap but who was buy bitcoin At 400 million is also very afraid when the price is only around 200 million at the time I made this article.
Or simply speaking of mining, many people think that investing in mining buffalo for a few years, later, when they do not dig anymore, liquidation will still recover capital.
But it is also not easy to eat. In case of a fire or an increase in the price of electricity, the difficulty of digging increases, mining is not profitable as before.
Investing in ICOs is a risky game that gives a strong feeling to players, so if you are a safe person, you will need to consider carefully before starting or can choose a different investment area. when it will be better.
c) Those who lack patience
Money does not naturally go away, it just goes from the impatient pocket to the pocket of the impatient.
From a business idea to a successful business is a long way, we cannot expect to build a strong Facebook or Apple like today in just one night.
Success is a process, not a day or two. Practice being patient if you want to win in this market.
d) Those who are lazy, refuse to learn, cultivate knowledge
The cryptocurrency market is changing at a dizzying pace. A day has a lot of news and new updated information.
Just think about it, more than 2000+ projects, if a project only updates a new news every day, it is 2000+ news. A huge amount of information.
In order to adapt to the fast-changing, disciplined change of the market, we must always be in a position to continuously learn and update our knowledge so as not to become obsolete.
If you are a person who believes in the future of blockchain, of cryptocurrency, dares to take risks, have enough patience, be eager to learn and have a little excess capital, investing in ICOs can be a good choice for for you.
As long as you remember, once you've chosen it, fight your hardest as warriors, fight to win.
How much does an ICO investment need?
This is probably the question most asked by new entrants to the market.
In general, current ICO projects have different pricing policies.
However, in general, I see that most of them require you to invest at least 0.1ETH.
At the time of writing this article, ETH is priced at $ 590 / ETH.
0.1ETH will be equivalent to $ 59, about 1 million 350 thousand.
Some projects they will not limit the maximum number that can be purchased.
But with projects that are too many investors want to buy, to ensure that many investors will buy the most coins, they will limit the maximum number you can buy.
Those who knowingly send more than 5ETH think that the investor does not follow the policy and will not sell to that person.
For cases like Pundi X, if you want to buy more, you can buy in pre-sale.
Pre-sale is wholesale. And what I've been saying is public sale, which is basically retail.
As a wholesaler, you will have to buy in bulk, usually at least 5ETH or more (usually, not always 5ETH).
Buy wholesale, of course, the price will be cheaper when you buy retail but in return the coins you buy will be locked and not traded for a certain period of time, usually 6 months to 1 year.
The reason is that because the wholesale buyers all hold very large numbers, after the ICO is completed on the floor, these people discharge simultaneously, the value of the coin will be reduced dramatically.
Therefore, buying a lot at pre-sale also has advantages and disadvantages, depending on the capital and personality, each person decides how much to buy, in which round, pre-sale or public sale.
In addition, during the development of the Coin98 community, I also met a lot of friends who love to invest but do not have much money.
If you are also in this situation, please refer to the program bounty & airdrop.
These are the campaigns promoting the name of the ICO project in the beginning for many people to know.
You will perform an act to help them promote, such as sharing project information on facebook, twitter or telegram, for example, in return they will pay you a certain amount of coins.
After the ICO is over, the coin is returned to your wallet and you can sell these coins to get some initial capital.
Once you have the capital, you use it to invest in potential projects to duplicate that money, that's all that simple.
In this area, your main assets lie in your knowledge, skills and method of investment.
If you are good, you can turn 0.1 ETH into 100ETH.
If you are not good, 100ETH can return to 0.1ETH.
It doesn't matter how many points you make, it is important how many times you multiply that number over a period of time.
Be a good person, and money will chase you.
Even if you don't have any money in your hand, you can still start (in the way you shared it).
Right thinking about ICO investment
By now, you must have grasped the nature of ICOs as a form of crowdfunding to develop an idea.
We give our money to that project because we believe in the idea and we believe in the ability of the dev team to be able to develop it to success.
Once successful, we can use the products / services of that project. At the same time benefit from the coin's price increase.
The key here is that we have to find a good project that has enough reasons to succeed.
Good idea, big market in demand, capable dev team ... in general, the weather, the terrain, the peace must have all.
You may be surprised that over 2000+ projects out there are only a very small number of this group.
So why is the majority of the remaining projects still being traded so much every day?
Most people are watching this as a game that brings great profits. They are often interested in the contracts on x2-x3 or even x10 in 1 day, but few people have time to learn about the project they are investing.
Passionate about profit is not bad. The main thing here is that we do not let profits obscure our alertness in making investment decisions.
There are still people who are hard at work to understand the coins to know what they are investing in, whether the project has any potential, any basis to expect price increases ....
But honestly, this number is not much.
This reminds me of the era of dotcom bubble.
At that time, hundreds of thousands of projects and dot com companies were born because it was too easy to make money, but then when the bubble passed, what were we left?
Are those companies still alive? Or are there only companies that really bring value to society, to the community like Amazon, Ebay, Alibaba, Apple ...?
Looking back at history, those days, if any investor recognized gold mines from Amazon, Ebay, Alibaba, Google or Apple and invested in stocks of these companies, now you think about it, they have earned. How much money?
Because of the value that the community brings, the real value created helps these companies stand even when the bubble burst.
Is Bitcoin a bubble?
Whether or not Bitcoin is a bubble is still the subject of much debate.
But I believe that by choosing projects that bring real value, with or without bubbles, these projects will still exist and develop sustainably.
By finding and investing in these projects, not only will we protect our capital more safely, but we will also be able to profit a lot from its development.
Of course, in the conversation at the cafe, or gossiping on the table you are still hearing about the opportunities to make money from junk trade coins or the growing market putting money in any coin will make you want to jump in. right.
Yes, in the short term, those kinds of things can still make money.
BUT..(The word "but" is very large)
These methods pose great risks when the market adjusts and purifies weak projects to make room for really good projects.
The most recent you can see the event that Bitrex deleted 82 coins on their exchange due to the weak trading volum and the technical factors of those projects often encountered errors, especially transferring coins to receive coins. .
In the short term, any form can make money, just we do not know how long this period will last.
In the long term, I think the market will have a large purification phase and gradually eliminate the junk coins.
The competition between projects will become more and more fierce, leading to those projects that do not have enough internal resources will be eliminated.
Just sooner or later.
That's why I encourage all of you to hunt for good projects to invest in it.
Do not be a bit short-term greed, but ignore the opportunity to make more money in the long run.
Before you get down on any project, always remember Warren Buffett's number one investment principle:
"Never lose your money" (never lose money).
This spell will probably help you a lot before making an investment decision!
Chapter 2: Risks and Opportunities
The potential and opportunities are sure you have heard a lot but there is one topic I see few people mention, that is the potential risk from ICO investment.
So when I started this article, I wanted to address the risk first.
Once you understand both the risks and the opportunities, at least expect investment to be more realistic, not be overly enticed, or simply know what risks are lurking. to have a timely solution.
Having so, when the investment missed, it was not too sad because it was determined to play with it. Strongly stand up and move on.
The risk was also anticipated, so it did not affect the total investment assets.
Here are some risks you need to know when investing in Bitcoin in general or ICO in particular:
This is probably the biggest headache for both the project and the investor.
Legal risks can lead to legal violations such as playing, so we should learn about this issue before investing.
In Vietnam, I now know that it is not allowed to use cryptocurrencies (Bitcoin & other coins) with monetary functions.
That means if you use BTC, ETH or any coin as a payment feature, it is a violation of the law and may be subject to criminal prosecution.
However, if you see cryptocurrency as a commodity and buy it with the purpose of hoarding speculation and waiting for the price increase, it can still be okay.
From 1 January 1, Vietnam has not accepted the use of bitcoin as well as other cryptocurrencies for payment purposes. All acts of doing contrary are likely to be subject to criminal prosecution.
For overseas Vietnamese currently living in other countries, I encourage you to study that country's policies carefully before starting to invest in order to avoid trouble later.
2. No paper binding
Unlike securities, when you buy stocks, that property is yours and is protected by law, when buying an ICO, the coin will still be returned to your wallet normally but it will Not protected by law.
Your capital contribution or purchase transaction will not be supported by any documents.
In other words, after successfully raising the capital, if the development team takes the money and runs away, you can't do anything.
Even if they don't take away your money, other risks still exist, such as team dev using money for the wrong purpose, saying one thing and doing the other, or worse, saying without doing.
In order to limit this, when evaluating projects, we will need to carefully check the information about the company, founding team to know that this is a real person, reputable & fully qualified. ability to do what they say.
Humans have the ability to create many amazing things.
A line of code, a speech, a product ... all shake hands from people.
Her grandparents used to have the saying "choose face to send gold" very right and not wrong.
3. Sharks manipulate prices
The shark here refers to individuals or organizations holding large enough coins that can manipulate the price of a coin.
Usually, coins have trading volume The smaller you are, the easier it is for manipulation.
A coin with a daily trading volume of 100 million VND, if you own at least 100 million you can make that coin worth.
Of course it also depends on the price-making technique, rather than holding money in your hand but not knowing how to make the price nor profit, sometimes you won't win and still lose.
To avoid cases like this, you should choose to invest coins with a large volume of transactions, about $ 10 million or more, the possibility of price manipulation will be more difficult.
It is harder, but not impossible, to make prices at that volume, sharks will need a lot of money so the probability of being priced is lower.
The larger the trading volume, the less likely it is that the price of a shark.
4. Security risk
If you regularly read daily news updates, it is not strange that news like this and that person being hacked takes a lot of money ....
According to my observation, most of the causes of hacking are mainly from the users.
So maybe the user is wrong?
No, users are not wrong.
It is just that they do not know how to protect their assets.
To keep your account secure, just remember to help me with the following:
1. Never share your private key with others.
With just a private key, anyone can log in to your wallet and transfer coins.
If you also use internet banking to transfer money, then giving you a private key is like sharing your username, password and otp code to transfer money.
With just a private key, anyone can access and manipulate all the features in the wallet without any problems.
2. Always turn on 2-step security (2FA)
This will help you limit the risk of your property even in the worst case, you have a username and password logged into a platform that is hosting your property.
3. Always double check the website address you want to log in
For websites you use often, bookmark the link in your browser.
Just log in faster, not encountering the case on the wrong fake website.
Example of fake website:
Root Domain: Binance.com => Fake: Binnance.com (add 1 n in the middle)
Original domain: MyEtherWallet.com => MyEtheWallet.com (leave an r in the middle)
These fake websites are born with the sole purpose of getting your important information such as private key, username, password ... so that only with the information provided, the person behind These fake websites can log into your wallet and transfer your coins.
Usually these fake websites will be built almost to 99% of the real website, only different domain names.
Therefore, to protect yourself, please bookmark the necessary address.
4. Always log out of your account after use
Do you know why?
Because when you browse the web, all your browsing history and behavior will be saved to a cookie.
Compared to stealing information from fake websites, getting a user's cookie is a lot easier.
If you do not log out after browsing the web, your login session will still be stored in a cookie, which could be used by your crook to log into your account.
And finally, give up the habit of saving passwords on web browsers to log in automatically.
If you are a habit of saving your username and password in the browser, I recommend using extension LastPass or 1password.
This is a plugin that allows you to store usernames and passwords in a much more secure way than you save directly in the browser.
Knowing that investing in ICOs is risky, but why do so many people want to rush in?
Those who have been involved in the market from mid October to early December 10 will know.
At that time, the cryptocurrency market was growing very well, everyone at this time would multiply by 5 times 10 or at least multiply by 2.
Just try to imagine after 1 night of waking up the multiplication account 2, multiplying 3 then try to ask anyone without greed.
The person who invested $ 1000 after one night became $ 2000.
The stronger one puts in $ 5000, the next day is $ 10,000.
There are many people who invest in billions of silver the next day take out 2-3 billion.
Therefore, everyone wants to participate to earn a little profit for themselves.
This market, after all, we trade high risks in return for extremely high profits.
Talking about risks, what is the job, any industry is risky, not just investing in Bitcoin, cryptocurrency, ICOs.
So it is very difficult to find something to do or invest without risk.
Risks always exist, it is important for us to learn how to grow ourselves bigger so we can better manage those risks.
That is also why in trade coins people often have the concept Stop Loss, say popular is cutting losses.
That is, if you have to manage and discipline properly, your probability of losing will be lower. It is also a form of risk control.
As for ICO investment, we can manage the risk by choosing a good project to play, choosing a trusted dev team to invest.
When investing, there is a reasonable capital allocation strategy, which will limit the risks much.
Cryptocurrency Only people have been paying attention for the past 1 year.
Everything is very new, no one knows what will happen.
Never check the depth of a river with both feet. Never put all eggs in one basket.
There are many risks and pitfalls, but the opportunities and potential for making money from this market are still great.
If we are determined, passionate, constantly learning, developing ourselves to become a winner in this market, we can make a lot of money.
To get that day, the most important thing you need is FAITH.
You do not hear wrong, it is faith. Why?
Because when everything is against you like when the market is long-term downtrend, when the bitcoin exchange rate plummets, if you do not have enough confidence, your stance will wobble and you will probably cut your own losses at the price. bottom.
Only the belief that the market will eventually recover, the faith in the dev team, the belief in the new project will help you overcome when the market enters the stormy days.
So before you make a decision to invest in this area, ask yourself if you are truly trusting and successful in this market. Do I believe in the success of Bitcoin?
If so, invest, if not, find another area of investment that you truly trust.
You will feel much more comfortable and secure with your investment, especially when the market is in trouble.
Invested is to believe, do not believe not invest.
Still believe it, then when the market goes down, we should be greed, not fear.
Once you have believed, you will no longer be wondering whether you should invest in cryptocurrencies or not, but the question at that time will be how can I win in this market.
Believing and not believing looks simple but creates two different types of mood when entering the market, resulting in different results.
Those who do not believe in what they do often give up, while those who are always clear in their minds about what they do always know what they are doing and need to do to succeed.
And then one day, it is the perseverance and perseverance that does not give up for a long time, will bring them the success they desire.
The cryptocurrency market still has a lot of potential, it is important that you believe it and fight with it.
Chapter 3: Evaluation of ICO projects
How do I know which projects are preparing for an ICO?
There are many channels that can help you update which projects prepare for ICO, here are some resources that I regularly use:
This is website I often use to view information about the most ICO projects.
Friendly interface, simple, easy to use are what I like very much in ICO Drops.
When accessing the website, on the homepage you will see 3 columns displayed including:
The list of ICOs shown in this column are projects that have been in the ICO process.
If you are okay, you can sign up to buy ICO always without having to wait.
List of ICOs that will raise capital in the near future. Each project is shown the expected ICO sale date.
So after the evaluation is complete, if you feel comfortable, you can wait until the day they open the sale to start buying.
List of ICOs that have completed a crowdfunding campaign. For these projects, if you do not participate in buying at the time they open the ICO, you have only one way to wait for the exchange to buy.
I must say is the interface of ICO Holder Very intuitive and beautiful. What I like most about this website is that they have very nice social stats updates.
Through their graphs we can see how the community development of these projects is, good or not.
In addition to the above 2 websites, there are many other websites with the same features ICO Watchlist, ICO Alert, CoinSchedule... but maybe I'll just stop at introducing you to the 2 websites above.
Knowing too many websites is also not to do anything because in fact we usually only use 1-2 main websites.
Simple but effective.
Guidelines for evaluating ICO projects
A successful project is a combination of many factors. Immediately, I will try to give the characteristics of a good project based on the experience of reviewing a lot of ICO projects.
Of course, to succeed sometimes it takes luck, heaven, and geography.
But at least, if a project satisfies all of the following criteria, it can at least help us predict two things:
- First, the likelihood of this project being scammed is extremely low.
- Second, this project can go a long way, without breaking the road halfway.
Reviewing all these parameters will take your time, but it is worth your time to learn.
Our capital fund is limited, so the key of crypto investment is not trying to invest in so many projects, but how to choose the right project to invest in and that project brings back. highest profit, lowest risk.
Here are 9 criteria that I often use when analyzing an ICO project:
Business Idea: Business ideas
From a technical perspective, when I read through the idea of an ICO project, the first thing I would do was to classify it into groups.
Usually I will divide into 3 main groups:
- 1. Platform
- 2. Protocol
- 3. DAPps
This is their own blockchain development team and will allow projects to develop applications on that blockchain platform.
This group has representative representatives such as Ethereum, NEO, QTUM, ADA, NEM ...
With projects in this group, we will almost have to evaluate from a technology perspective is much.
Technology projects behind, if they want to win, need to prove their superiority over existing projects.
Take Ethereum as an example, as the number of projects running on the Ethereum blockchain increases, leading to a slower transaction speed, at this time the later projects such as Cardano (ADA) or NEO (NEO) will compete. contended with transaction speed that was significantly higher.
That is how the following projects can beat the previous opponent.
This group specializes in developing optimal protocols for a specific purpose. To be faster, applications can use these protocols to develop their applications instead of rebuilding from scratch.
While the platform group almost exclusively analyzes based on technology factors, with the protocol group, a good idea will be the convergence of three factors including technology, industry / field and ecosystem understanding. .
Ecosystem is classified as one of the three factors here because when the projects are not so different, the ecosystem power of the larger project will be able to gain market share faster.
This is a group of blockchain development applications and available protocols to solve a specific problem of society.
Most of the projects you can name are usually in this group such as Pundi X (NPXS), Substratum (SUB), WABI (WABI), Quanstamp (QSP) ...
As I said, Dapps is almost focused on solving business problems, so we will need to address the following questions:
- Does this problem exist or not?
- Is the solution of team dev reasonable? optimal yet?
- Has anyone solved this problem yet?
If all 3 questions above have the answer is YES-YES-NO then this is a good sign we can trust that this is a good idea.
With different groups we will have different evaluation criteria so the above classification is necessary and it also helps us to make a more accurate judgment about the project.
Team: Development team
Through the process of reviewing a lot of ICO projects, I realized that the common point of good projects is that they have a very strong development team, spread across many specialties.
Before going to review the profile of a certain team dev profile, I always spend time checking through the team structure of that project first.
You might find it a bit strange to hear this team structure concept, but that's okay, I'll explain it right away.
Imagine a football team would normally have 11 positions on the field. These 11 positions will be divided into many positions such as goalkeepers, defenders, central defenders, midfielders and strikers.
A perfect team is a team with all these positions are strong and united, working together in accordance with the coach's strategy.
With team structure, you can also think similarly, except that the positions in an important team include a group of people who understand industry, marketing, finance, legal and technology, especially blockchain technology.
In it, the CEO will usually be the one who should understand the industry. It is very difficult to lead an entire team to operate in an area where the CEO has no expertise in that area.
In addition, depending on the project belongs to the platform group, protocol or dapps that allocate the number of each part more or less, but I think it is best to have all of the above.
Advisor: Expert advisor
When it comes to mentors, we will immediately associate people with long-term work experience in an area that the project needs, usually the areas that dev team is lacking.
From the perspective of an ICO issuer, there are two ways of thinking about choosing Advisor:
Choose people according to the expectations of the crowd to easily raise capital, no matter whether they support the team or not, just appear on the website to let people trust the investment.
Choose the professional that the team needs. Having the mentors of those people in the team, the project will surely go faster and further.
For long-term projects, surely the second way will be to help them be more.
Strategic Partner: Strategic partner
Similar to advisors, strategic partners are reputable organizations operating in a certain field.
Being a strategic partner, of course, there is a need for two-way cooperation that brings benefits to each other.
Many projects are now trying to bring in as many strategic partners as possible to increase their credibility, but sometimes the two parties are not related to each other.
If the projects involved and collaborating really benefit each other then don't say anything, of course as much as possible.
I just want to talk about projects that put in style and make profile without having to work together to benefit each other.
So when you look at the strategic partners of a project, besides looking at the names, you should at least imagine how these companies will work together and how the relationship will work. "make sense" (reasonable) or not? Does this partnership benefit both parties?
If so, that's certainly a sign of a good project.
When evaluating the product section of ico projects, there are three types of products that you will need to consider:
- Type 1
- Type 2
- Type 3
Just at the idea level and whitepaper, there is no sign of product development
At the moment there are so many ICO projects to invest in today, you should not invest in projects that only have whitepaper but do not have a sample product.
Many people will say that of course they have not developed products, they need money to start working on making them new ICO, not what they do?
Yes, from an entrepreneur's perspective, of course we need money so we need an ICO to raise capital.
But in terms of investors, if you have a piece of money, you have 1 offers and can only choose 2 of 1 between a project that has not done anything and a project they have invested or managed their own money to Once you have developed the demo product, which project will you invest?
Not to mention the story of how much money to raise, but just managing to develop the project itself, it shows that the dev team is very passionate about the project.
Even without money in hand, they will think of a way to have money to develop the project, even without money they will work to the end.
In addition, the early management also showed that the dev team had the initiative to deal with any situation.
And with or without our money invested, they will manage it. It is the dev's adaptability and quick response that will help them survive and thrive.
As for the team who always needs money and then do it, the high probability when the project runs out of money will stand still waiting for money to pour before doing it.
Our capital is limited while so many projects call us to invest.
Always be smart in putting your money in the right place.
Proof of concept / demo / testnet
As mentioned above, projects with products in this group 2 will give us a higher confidence in team dev.
There is one more point that I have not mentioned above, that is the projects that have developed the normal demo product will plan more realistic development than the projects that only have white papers.
The reason for this is that when you think about it, it is usually very easy, but when you embark on the code, a lot of problems will arise.
These problems are often not anticipated at the idea level.
It is only when we start to do that that it is difficult to reveal and now we need to deal with it.
A demo version is not 100% complete in terms of ideas, but at least it shows you the devotion of the dev team and the potential difficulties in the product development process, thereby forecasting the plan for the future. hybrid in a more realistic way.
This is the kind that we would expect the most, also the type with the least projects.
Projects of this type are usually finished with the product development and almost ICOs are to scale the business faster.
Examples of this type can be named as Pundi X, Wabi ...
Roadmap: Roadmap for development
When looking at a project's roadmap, there are two questions we need to answer:
Firstly, is the vision of this project far or not?
Secondly, is this roadmap reasonable & feasible?
Vision is too short will not go far.
The plan is not feasible, it is difficult to implement.
Once the project fails, investor confidence will disappear, the demand for tokens to use in the system will no longer exist, of course, it will be a poor future for our investment. .
On the contrary, a long-term vision, a reasonable and feasible plan will promise a much higher probability of success.
Successful projects will increase investor confidence, the token itself is also used within the project's platform, promising a bright future when the token price rises.
For brevity, I will omit the minor parts and focus on the most important part that you might be interested in, which is what determines the price of a coin / token?
We are investors. Price increase or decrease is certainly what we will be most interested in to enter orders, take profits, cut losses.
I will talk about supply and demand first.
First, when you learn about tokens, you'll need to find out where the project's supply comes from and how it changes.
With a constant demand, if the number of tokens on the market decreases, the price of each token will of course increase. If the number of tokens increases, the price of each token will decrease.
The number of tokens circulating in the market will usually increase when you see the following signs:
- The tokens sold during the private sale were unlocked and these investors flooded.
- The project issues additional coins / tokens
- Proof of Work mining project, Proof of Stake
Conversely, the number of tokens will decrease as the issuer burns the token.
As for demand, with a constant supply, when demand increases, prices increase, when demand decreases, prices fall.
There are two main reasons why people decided to rush to buy tokens: buy to speculate to raise prices and buy to use.
Depending on the proportion of the group who holds a larger number of tokens, the price of the coin will be determined by that group.
A sustainable project is a project where the number of token holders with the purpose of use will be more to invest.
By the time I made this article, very few projects are doing that. The majority of buyers speculated to wait for prices to rise.
Partly because the market is new, partly because the majority of projects are in the development stage, and have not brought products to the market, so the group of buyers for use is not significant.
This will change after a while, these projects will launch and the demand will increase.
With the group of buyers used
If the project should work, that is, more and more people use the product, leading to an increase in demand for purchase, limited supply, resulting in a price increase. On the contrary, any project that cannot be operated will reduce its price dramatically and will be gradually eliminated by the market.
At this point, maybe you understand the story somewhat when in all reviews, Coin98 always focuses on analyzing the possibility that the project will be successful or not, why then?
When a project launches their product to the market and is well received, the business develops well, and investors' confidence will be high.
This belief will immediately be expressed through the token price increase. In the long term, just one deal is enough to bring you a lot of money already, not to mention many projects.
With a group of buyers for speculation
Depending on the school of each person, their impact on the token price will also vary.
There are three main schools: technical analysis, news and market pricing (sharks manipulate prices).
There are many types of technical analysis, but the most familiar one is probably the technical analysis school that uses candlestick as the focus, using past price patterns to predict direction. of future prices.
Newsgroups often gather together before news and expect a breakthrough after breaking news.
The market pricing school usually chooses coins / tokens with small trading volumes to ease prices. They create traps to the crowd FOMO Buy when prices are rising and then profit. Coin / token with a larger transaction volume makes it harder to price.
For each different school, you will have an analytical way to enter different commands.
One thing you will need to keep in mind, is that when a coin has a large number of holders, the person who holds the highest number will be the one most likely to influence the price.
Even if you have a lot of experience in technical analysis, but the biggest coin holder is due to sharks' price, your analysis is very difficult.
The school that holds the most tokens will determine the direction of the price.
If you are a person who does not have too much time and does not have much financial investment expertise, the easiest way is to find good projects, buy and hold.
You will have peace of mind and profit, just need a little patience.
Budget Allocation: Budget allocation
The budget allocation is the information that projects will present about how they plan to use the funding after the ICO.
There are 2 parts of the budget that I often pay attention to when looking at this part. One is the budget for product development. The second is the budget for marketing.
Depending on the nature of each project, the way the budget will be allocated is somewhat different.
The more technology projects, the higher the cost of the product development. Projects with unique ideas will need to spend a lot to promote and expand the market.
Assessing the structure of a project's budget allocation depends largely on the individual's perception.
Just analyze a lot of projects, gradually you will know how the distribution structure will be reasonable.
How much and how many times to Raise?
Any project that calls for an ICO has a number called the capital goal.
The more the capital is called, the slower the rate of asset multiplication.
Assuming Project A calls an ICO of $ 1 million, just add 1 million more and the value of your assets will multiply 2.
Conversely, if instead of calling $ 1 million, A called to $ 50 million, then x2 will need to have an additional $ 1 million source of money poured into the market to buy coin A, your assets will double. .
That is why I like good projects but call small capital, the smaller the faster and faster the flight.
The majority of current ICO projects are those that do not yet have a finished product. For that reason, the price of tokens largely depends on the speculative group.
This explains the reason why a lot of projects are very good when analyzing such as after the ICO finishes the token price drops because not many people know, there are not many buyers, demand is low, supply is high so the price reduction is a problem. necessary.
As an investor, we care about profit.
Nobody invested but wanted to lose.
But to be profitable, the price increase after the ICO needs a larger quantity of supply than the available supply.
How to stimulate this demand up?
The answer lies in two words: ADVERTISE.
My project is good, my project is good and no one knows, there are no users.
More and more people know about the project, which not only created an increase in storage demand after the ICO finished, but also helped the project to develop a file of customers willing to try the product after the version was released.
This benefits both parties: the project and the investor.
Signs identify an ICO Scam
Scam is a very sensitive word and probably the one thing we would most like to avoid when investing in this market.
No one wants to invest in a scam project.
But how to know where is a scam project?
Are there any clues or signs that can help us predict what is a potential rogue project?
The answer is yes, here are 10 signs of a project you'll want to stay away from:
a) Anonymous DEV Team - Fake profile
Admittedly, something like this, an idea, is very easy to copy and steal. Anyone can think of an idea.
Do you admit to yourself that every day too many million dollar ideas run through our minds?
So why aren't we still millionaires from those ideas?
Understandably, an idea anyone can think of but important who is competent to turn that idea into a real product or service.
Implementation is more crucial to whether a project is successful or just at the idea level.
How to evaluate the performance of a person, a team dev?
It's easy, look at the results they've done.
Details about how to evaluate a dev team will be discussed in the section below, but usually when analyzing an ICO project, I try to find out very carefully about who is behind the project.
This is one of the very important factors when evaluating an ICO.
So if any project does not provide clear information about the team dev, including not providing information or intentionally fake profiles, Red Flag (bad sign) signals a potentially fraudulent project.
b) Not give purpose of use of coin
Why do we need to understand the purpose of a coin we want to invest?
The price of a coin in the crypto market is greatly governed by the law of supply and demand.
When demand is greater than supply, the buying pressure is higher than the selling pressure, the price will increase.
Conversely, when demand is smaller than supply, the selling pressure is higher than the buying pressure, the price will decrease.
Without understanding the purpose of the coin, it will be difficult for us to determine where the demand for coins comes from, but if the source of this demand is not identified, a news, a project announcement. Launched we do not know how it will affect the price of coins that we are holding.
That means, almost as if we are holding a coin that it raises, it does not know why, and it does not know why.
That's like investing style hugging a rabbit or opening your mouth to wait.
c) sketchy whitepaper
I remember not too long ago, when I attended the Vietnam Blockchain Week event held in Saigon.
A speaker asked more than 1000 people present in the auditorium:
Any of you who have read the whitepaper of your investment projects will raise your hand and tell me!
The results were surprising, I remember right, only 5-6 hands up.
This is also one of the most interesting paradoxes when investing in crypto. Although the whitepaper is the most informative document about the project, most people don't read it.
When it comes to the whitepaper, there are two things to clarify:
First, the project must provide specific and detailed information as possible.
This will help investors understand the project better and make investment decisions easier.
Moreover, I think that we are the ones who spend money to invest, so the desire to understand the project is a perfectly legitimate and reasonable desire.
On the contrary, reading and understanding the project is also an action that shows we are more responsible for our investment.
If you do not read the whitepaper but invest at a loss, the first error is because we have not studied thoroughly, not by anyone.
A well-written, inadequate, low-level whitepaper demonstrates the team's attitude towards the project they are trying to raise funds for.
How can they do great things even when their whitepaper is superficial?
Do you feel right?
d) Failure to provide a contact address
This is obvious, the ICO investment process does not always go smoothly.
Sometimes we often encounter this error, the other error and we will need help from the project.
Without contact information, what can we do now?
When investing in ICOs, you will sometimes come across the feeling of having read the whitepaper again and again many times but there are still unclear points.
This is the time when we will need contact information to ask more about those issues.
Contact information is essential for investors.
If it's just fake, or bogus information, it's best to stay away from those projects.
Not only did he accidentally transfer money but now he was stuck or did not receive coins nor did he know who to ask and asked for someone to solve it.
e) Commitment to profit upon investment
This is a feature you will be very fortunate to encounter with lending, ponzi and hyip models.
Lending might have been a thing of the past.
A lot of people have gotten very fast thanks to coin lending.
And also a lot of people sml cry a river with coin lending.
It is too difficult for a project to find a large and stable source of money to commit profits to all investors monthly.
Business is not always favorable, sometimes development is difficult, but never stable.
That makes no sense at all.
The commitment to profit is nothing more than a form of greed to attract investors.
But now I invest in it, they are at a loss and then have no money to pay interest for me, I can not do anything.
So for any project that commits regular monthly profits, you can quickly decide to skip that project.
f) Using a sentence that is a pull
The communication message of a project will often show who their long-term vision and customers are.
If a project emphasizes their message to bring you an attractive profit, then maybe their customers are not what they say, they may be the target they are you, the invest.
I have reviewed many projects so far, but I have not seen any good projects that really emphasize to bring profits to investors.
The old people and grandparents used to say, "good showing, bad covering."
I think in this case it's quite right.
If their product / service is good enough, people will definitely show it off, there's no excuse to hide it.
The high possibility is that the dev team is not confident enough with their products / services, so they use the message of profit to attract investors.
That's right, but if you don't bring it out now, there's nothing to promote anymore.
g) Use lots of buzzword
Buzzword is one of the terms talking about the use of style that is sublime, dangerous but actually cliché, not very informative, with the purpose of confusing the reader.
For those who are not experts in the industry, hearing these buzzwords will feel like this is very specialized, monumental and in-depth information.
But actually it is not just because people intentionally make readers not understand or misunderstand only.
Not only crypto but also everything we invest, we should invest only what we understand.
When you want to invest in a project, study it carefully before making a decision to invest or not?
As for any project I do not understand, although I have tried but still do not understand, I think you should not invest.
ICO projects are many, missing 1-2 projects is not a big deal.
There are always better and better new projects so we don't have to hurry.
h) No roadmap or impractical
Any road will go back to Rome, only that there is a short distance, a long way to the destination, a long way to the destination.
Our world is changing so fast, sometimes someone just steals an ICO project and has the idea to build a new ICO.
The faster one, gaining market share, he wins.
So when looking at an ICO project, roadmaps will be the part that will help us to visualize where the development team will lead the project to and for how long.
Raising capital to start the project is difficult, but using it appropriately to get the project to the fastest destination is a more difficult problem.
For projects that do not provide roadmaps, it is impossible to know where and how this project will go.
When we do not know how they will use our money to develop the project?
Will you be assured to invest?
Or when they provide a roadmap but set a very unreasonable roadmap, it will be very difficult for the project to succeed.
l) No demo productsDo not listen to what they say, look at what they do.
No matter how detailed and thorough the whitepaper is, but without a demo product, all you hear is still on paper.
That is the project that has just been said, but has never started to do anything.
You know that!
Easy to say, hard refresh.
Have you ever done something that was easy to think about before you did it, but did you find it very sour until you did it again?
Obviously, when you start working, you will see many problems coming out.
These problems, even if we think forever will never know, until rolled up sleeves.
With a project that only stops at the whitepaper, they will not know what are the possible problems when deploying so that their implementation plan will be much less accurate.
What if they expected to raise $ 10 million but they started to know that they needed $ 50 million?
Do you have to issue more coins to continue ICO?
This tenth is based on my own real experience in reviewing ICO projects.
Sometimes I feel that the project is okay but somehow I am not confident to invest so I just added it.
Invested of course everyone expects profits, but also comfortable.
There are so many ICO projects out there that have nothing to worry about.
Can't get into one rafter.
We invest but we are not comfortable, when the money is down, the days and nights are anxious, exhausted because of worry.
Chapter 4: ICO investment strategy
Strategy No. 1
Buy ICO and hold to die (insist on not selling until you see the project succeed).
These are really big fans of Blockchain and cryptocurrency. Moreover, there is strong capital and abundance, so we do not rush to take profits.
Each project they invest in and the hold period is calculated in years. If the project is successful, the initial investment amount will be multiplied by a very large factor. If the project is held wrong, not only is it not profitable but capital is also lost.
Strategy No. 2
Buy an ICO, wait for the token to rise, and sell off the tokens purchased.
In stark contrast to the No. 1 group, strategy No. 2 followers focus on the capital turnover.
Time is the most important indicator for these people. How to win the most deals in as short a time as possible.
Strategy No. 3
Buying an ICO, waiting for the token to rise and sell a portion corresponding to the invested capital, the remaining hold to die.
You can imagine this strategy with the image of sowing.
Suppose, you have 100 thousand, you invest in a project and it triples, you withdraw 3 thousand principal and bring that seed to another project. The remaining 100k of token value will be held to die.
Strategy No. 4
Buying an ICO, waiting for the token to appreciate and selling a larger part of the invested capital to raise capital and a little interest, the remaining hold to die.
Strategy No. 4 is quite similar to Strategy No. 3, except that instead of just withdrawing to the original part, you can withdraw a part of the interest.
This is great because after withdrawing, you will almost be relieved with the remaining money because you have withdrawn both principal and interest.
The rest is just the extra interest. Lucky, the more interest, Xui, the more but less interest is also profitable.
Capital management strategy
In investing, capital management is very important if you want to minimize losses and maximize profits for your overall asset value.
Each person will have a different "blood level" so no specific formula can be right for all cases.
If you have less money, you may consider taking more risk but not more than 10% of the total amount of assets for each trade.
If there is a lot of money, safety should be a top priority therefore every trade. You will not want to participate more than 5% of your amount for each deal.
Capital management, easy to say, difficult to renew.
To manage capital well, the discipline of the investor is very high.
Most people fail not because they do not know how to manage their capital.
They failed because there was not enough discipline to properly manage the plan.
Chapter 5: How to buy ICO with Ethereum
Each project announcing the launch of an ICO will always have purchase instructions included. Depending on the organization of each project, the buying method is also different.
Since the majority of current ICOs mainly use the Ethereum blockchain, in this tutorial, I will focus on how to buy tokens running on the platform. ERC-20.
Projects running on NEO, QTUM, ICON ... will be updated in the future.
Usually, projects running on the Ethereum platform will have the following way to buy an ICO:
- You register for an account on the project website
- Deposit ETH into account
- When the ICO is open for sale, you only need to log in to the website to buy.
- After buying the token will be updated in your account, now you can withdraw MEW wallet to store their assets or transfer them to the bourse.
- You register for an account on the website
- When the ICO is open for sale, you log into your account will see 1 ETH address appears
- You transfer the amount of ETH you want to participate in the ICO to this address
- After the end of the ICO token will be returned ETH wallet address that you used to transfer ETH away during the ICO purchase
- You can leave the token in your wallet or transfer it to an exchange
Sometimes the process of returning tokens to a wallet will take a few days after the end of the ICO.
You will need to wait patiently for the token to be returned to the wallet to ensure that you have successfully purchased the ICO.
Chapter 6: Some experience when investing in ICOs
There are lessons that don't necessarily take us to learn. The following are summarized experiences of ICO investment that can help you to be more successful faster.
# 1: Never put eggs in a basket
Any investment has always been a potential risk within it.
No matter how talented and thorough you are, the probability of a deal failure always exists.
Therefore, always divide your eggs into a basket, do not all in.
You can win 99 times, but only once failed, all your previous victories will follow.
# 2: Stay away from projects with scam signs
Do you still remember the number 1 investment principle of billionaire Warren Buffett?"Never lose money".
There are a lot of good projects out there waiting for us to invest, it is better to invest in a good project, eat a little bit but be more secure than invest in a potentially fraudulent project. yourself.
When you haven't invested, the money is still in your pocket.
When you are down, the money is in the dev team pocket.
Be very careful with your investment deals.
# 3: Free meals only available on mousetrap
When someone gives you a deal that will definitely win 1%.
At that time, remember your saying above. There is no free meal in this world.
Nobody gives nobody anything, everything has its price.
# 4: Always learn to develop yourself
Blockchain & Cryptocurrency is a rapidly growing field. Everything changes day by day, hour by hour.
In an area where everything is going, standing still is going backward.
Yesterday's knowledge may not be true today.
Keep yourself in a position to learn and update your knowledge daily to improve.
# 5: Find like-minded people who talk to each other and learn from each other
He and she have the saying: "Learn no teacher to learn friends."
Therefore, having a small team to exchange investment experience not only helps yourself to improve faster, but also creates quality relationships that promote each other to go up day by day.
Sometimes when we lose, someone condolences, and when we win we celebrate together. Isn't that a lot more interesting?
# 6: Learn to be responsible for your own decisions
If you win, be happy don't be too happy and if you lose, at least find out why you lost so you won't get it next time.
When you invest because trusting someone introduces, always respect that person regardless of the outcome.
The money that you invest, whether you win or lose is the sweat of your work, be responsible for it.
You have down the money, the next should do?
Please wait patiently for fruit picking day.
You cannot give birth to a baby in just 1 month by making 1 pregnant women pregnant.
You have tried your best. Now is the time for us to sit and rest, waiting for the day to pick fruits.
Miracles often take time.
Wish you a successful investment!
If this article is useful for you, please help me to share it with your brothers, know will help something for people!
Wish you a successful investment!