FX.co ★ Five mistakes to avoid when investing in ICO

Many beginning investors are full of enthusiasm and ready to invest in the development of the crypto sphere. Most often, they need to invest in the Initial Coin Offering (ICO). However, there are so-called "pitfalls" that can lead to collapse. Experts suggest paying attention to the most common of them.

Any ICO will be successful

Every newcomer to the crypto world wants to believe that by launching the process of Initial Coin Offering, they will be able to raise enough funds for the further implementation of the project. However, the reality is that few investors succeed in doing this. In 2017, according to statistics, about 46% of all ICOs ended in failure. Nevertheless, with a well-prepared project and a good team, you can count on success.

Tokens and coins are synonyms

Both terms are most often used as interchangeable, synonymous terms. However, there are differences between them: coins are exclusively a means of payment, and tokens are multifunctional. In addition to the function of the means of payment, they have cryptographic value in the blockchain system.

Any consultant on cryptocurrencies is an expert

A common misconception of novice investors is their excessive credulity to almost all consultants on cryptocurrencies. Having no experience, it is difficult to identify an amateur in this area, especially one who can brightly and beautifully express his thoughts. However, here one has to be a consultant to oneself and deal with digital assets.

All listing sites are similar

At first glance, most of the listing sites represented on the Internet are very similar. However, there are distinctive details that are not always visible to a novice businessman. In this situation, it is better to seek professional help.

Regulators do not care about the crypto sphere

At present, sectoral regulation remains a problem for the global crypto market. However, do not be mistaken about the inaction of regulatory institutions. They are always on the alert. Most regulators have to be careful about a new area for them, trying to understand what leverages can be used.