ICOs and IDOs are perfect for gaining initial financing and are nearly perfect for making profit on their coins for us, traders. Once again, we’re helping the rookies start their voyage into the world of crypto with multiple advice on which projects to choose for investments.
Get familiar with the team
Many teams are entrepreneurs, new to running their own business, who have zero experience in marketing and development. No doubts we love new faces in the crypto game, but we also hate losing our money because of poor strategy. That’s why cases, where serial entrepreneurs stand by the wheel show a much more pleasant statistic. The best projects are the ones, having a dedicated page to present the team on their website. There you can find the roles of the members and get to know the members themselves. Sometimes you might need to check out the social media of the founders, but team analysis is compulsory.
Sometimes, companies, who have already taken their place in the industry start their coin offerings to expand even more.
Who is our target market and what are our goals?
Continuing the strategy idea, understanding what people are the project’s potential audience is an important thing to do. You can’t please everyone and having a certain category of people, who will definitely use your product is a great sign.
As mentioned before, many teams see ICOs as an easy way to earn money without any responsibility. That’s why they focus on gaining as many community members as they can ASAP. Such projects have no target and will eventually loose users’ interest, which makes clear goals obligatory for success.
Are the coins dependant?
Many projects have their coins linked with Ethereum or Bitcoin, which means no stability at all. Of course, cold-headed trading demons will always predict all the pumps and dumps, but with zero experience side coins will only cause you loss. Try something more trivial at first - good old Ethereum could be the perfect coin to train your skills before understanding which side coins to hold.
You might also just use a demo account, but that makes close to zero sense, because as our experience shows investing your own money and investing fake money is a big difference.
Free coins not for free
Some projects also offer additional free coins for buying certain amounts of their coins. We highly recommend you participating in such giveaways, because they usually drag people’s attention to the project and increase the token sales. So, the more rising in price coins you have - the more you might earn. Those coins might also be given by fulfilling some conditions, but we already have discussed this topic in our previous article.
To sum up, we first check what is the project all about and what goals is the team chasing, then a quick review of the founders and their previous achievements and then we check out if there are any giveaways available to see if the community is engaged. In the end, we combine those three factors to understand if the chances of the coin to grow in price are high enough to invest into it and to show the coin to you.
You can also find similar articles about profiting from NFT and profiting from free drops in our blog.