Guides

10 Questions You Should Ask Yourself Before Investing in an ICO

Published

5 years ago

July 5, 2018

2017 was the year that saw cryptocurrencies hit the mainstream with the price of bitcoin rallying from $1,000 to its all-time high of $20,000 at year-end. But that was not all as initial coin offerings (ICOs) shared in the limelight gaining massive traction and interest from investors and startups across the globe. The 400+ token sales saw ICOs raise more than $6 billion in 2017 alone. While ICOs have presented a great opportunity for startups and other businesses to raise money, it is a high risk – high return venture for investors. Hence, it is important to conduct in-depth research before investing in an ICO.

In this guide, you will find the ten most important questions you should ask yourself before investing in a token sale to ensure you get off to a good start with your investment research.

Is the ICO legitimate?

The ICO market has been plagued with scams since its beginning. It is, therefore, imperative for anyone looking to invest in any ICO project to do their due diligence and verify whether the project is legitimate.

The first step in doing this is to “fraud check” the company doing the token sale. Is there sufficient information about them online? Are there reviews from other people i.e. past or potential investors? If you cannot find any information online about the company behind the token sale, that should be a red flag.

The second step is to look through the directors of the company doing the ICO. Genuine company directors should possess a digital footprint. A LinkedIn profile should not be enough to make you invest. Any entrepreneur – upcoming or successful – must have had people talking about their company and should, therefore, have several references online.

Is the team behind the ICO able to deliver?

Successful companies and products have been built because they had an excellent team. For the team to build and launch a successful blockchain project, it must have had past experience in successfully launching and running similar projects. An experienced team with the right skills and experience are a sign that it may deliver on its mission for the project.

However, if the team behind the token sale has little to no experience with blockchain products, that should be an immediate red flag to any investor as the project may end up becoming a flop. Additionally, it could be an indication that the team is in it to make “quick money” instead of truly wanting to develop a value-adding blockchain-based platform.

Does the project’s whitepaper have all the necessary information?

When investing in a business, investors always look at a company’s financials first. Since ICOs are usually conducted to raise seed capital, however, that information is not provided as the company has no track record yet. Hence, for ICOs, the focus needs to be on the project’s whitepaper. The whitepaper is just as important as the people behind the project.

The whitepaper needs to be clear and explain the vision and technology of the project in a professional and concise manner. It should detail how the team hopes to make the project a success with the crowdsourced funds. Should the project’s whitepaper leave out any important information or lack a well-detailed strategy needed to make the project a success, that is a very clear red flag and it will most likely be best to avoid investing in this project.

Is the ICO’s product ready or purely an idea?

Do not get me wrong. I am not saying that you should not invest in an ICO that is still an idea that is yet to be designed. However, should you choose to go ahead and invest in a token sale that is still just an idea, there is a high risk that you may lose all your investment as compared to investing in a token sale that has a ready product.

While even with a ready product you may still lose your investment, the risks are lower compared to the former as the project will more than likely have a platform that is ready and operational and just wants to prove the platform’s efficiency by adding the digital tokens and blockchain technology.

Is there transparency on what the raised funds will be used for?

This is a very important question any investor should ask themselves before investing in an ICO. The project should have a clear plan on how it intends to use the funds raised during the token sale. This can either be done via the company’s website or in their whitepaper. The more specific and detailed the breakdown is, the better.

However, if the company directors are evasive on how the funds will be used, this should be considered a red flag due to lack of transparency exhibited by the company. In addition, if most of the issued tokens will be held by the project’s operators, it could be a sign of a potential pump and dump scheme.

Does the final product from the project have a market?

When considering what token sale to invest in, it is crucial to analyse whether there is a market for the project’s final product. Lack of a possible market for the solution, technology or product may mean that there will be no demand for the product once it is launching, which would result in a drop in the value of the project’s token in the long-run.

Is the code open-source and can it be assessed?

Traditionally, most blockchain projects are known to have open-source code that can be found on GitHub and can thus be audited or assessed by third parties. If the blockchain project you want to invest in has an open-source code that has or can easily be probed by trusted community members, this should be a positive indicator of the project.

Today, however, most blockchain projects that launch ICOs tend to keep their codes private. While this may be valid in some cases as the project may have direct competitors it wants to shield its technology from, being able to audit a project’s code adds transparency and trust.

If a project’s code is not open-source and there is no evident reason for keeping the code private, may be an indicator to better stay away from the project due to its lack of transparency.

Does the project warrant a blockchain and token?

Another factor that needs to be considered when looking to invest in an ICO is whether the company really needs a blockchain and a native token for its platform, service or product. Because ICOs have a low entry barrier, there are a large number of startups that run ICOs in a bid to get easy funding by claiming they will implement blockchain technology to their new product or to improve an already existing one.

If the project has the potential to run without the need to utilise blockchain technology or a native digital token, it should be a clear sign to stay away from the ICO.

What will be the function of the token?

There are a variety of digital tokens that a company can put up for sale. These include but are not limited to utility tokens, currency tokens, tokenised securities and reward tokens. When looking to buy tokens from an ICO, it is crucial for any investor to understand the role of any token that is issued. If what the company is offering is a tokenised security, will it function as a digital share by the issuing company? On the other hand, if it is a utility token, will investors have access to or specific benefits from the project’s platform?

The function or role of the token needs to make sense and should have the ability to drive demand and not just raise funds for the project.

Who are the competitors?

Finally, when considering investing in an ICO, you should also look at the project’s competitors. A competitors analysis will show you whether a company is likely to outperform its competition or not. Should a project’s competitors be more likely to succeed, then it might be better to invest in their digital tokens instead.

However, if the potential company’s blockchain platform is at par with or better than its competitor’s, then that is a good sign that its token could perform well in the secondary market.

Remember that investing in digital assets comes with a substantial amount of risk and you should never invest more than you can afford to lose. However, if you are looking to invest in a token sale, you will be well advised to answer the ten above-mentioned questions as part of your overall investment research as they cover all the key aspects of an ICO.

Related Topics:ICO initial coin offering token sale

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How to Deposit and Withdraw at Crypto Casino Crashino?

Published

10 months ago

September 16, 2022

Guest Contributor

Playing at online casinos might be your go-to favourite fun time during the day, but did you know that you can use your crypto to play as well? Crashino is the next generation of online casinos! Learn how to register, deposit, and withdraw from Crypto Casino Crashino. This is a very easy and step-by-step guide on how to make your deposit at Crashino with Crypto.

HOW TO CREATE YOUR CRASHINO ACCOUNT?

1. Go to Crashino.com

2. Click on Register Button

3. Enter your email address and password

4. Choose your preferred FIAT currency (USD/EUR)

5. Click on the SUBMIT button

6. Now you are registered already, and you can take the Crash rocket to the moon!

Now it is time to transfer your crypto to Crashino and start playing! If you don’t have crypto yet, you can go to Binance or any other respected crypto wallet and buy crypto easily.

You can choose more than 12 cryptocurrencies to deposit with, you don’t have to think about their price volatility. While you play at Crashino, you play with your preferred FIAT currency that you chose upon registration. Only once you make your withdrawal do you need to choose which cryptocurrency you would like to cash out with.

Please choose USD as account currency and deposit with USDT if you want to stay away from the volatility big time.

HOW TO DEPOSIT AT CRYPTO CASINO CRASHINO?

1. Click on Deposit Button

2. Click on the Nomipay icon

3. Choose the Cryptocurrency you prefer to use

4. Enter the amount you wish to play with and click on Submit

5. Now, you are redirected to the Nomipay page with the depositing address.

6. Send your crypto to the address, and it will be transferred to your account!

You can use the QR code to scan your wallet and make your deposit there, or you can copy the address from this page and make the transaction in your crypto wallet to this address.

You can choose from any of these cryptos at Crashino: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), Tether (USDT), UsdCoin (USDC), BitcoinCash (BCH), Solana (SOL), Binance (BNB), Dai (DAI), Shiba (Shiba), Tron (TRX)

HOW TO WITHDRAW YOUR WINNINGS FROM CRASHINO?

1. Click on your account icon

2. Navigate to My Wallet and Withdraw section

3. Choose the Cryptocurrency you prefer to use for cash out

4. Enter the Crypto Address you wish to send your withdrawal to

5. Enter the amount you want to cash out

6. Click on SUBMIT button

Now you have already requested your withdrawal. Please keep in mind that it can take up to 24 hours for your withdrawal to be processed, but usually, it’s much faster.

As you can see, it is very easy, it is to deposit and withdraw at Crashino, and you can use your crypto to play and win big. Start today by joining the Welcome Mission and get an amazing bonus of 100 Free Spins on top.

Guides

Can You Win Real Money by Playing Crypto Slots?

Published

1 year ago

July 1, 2022

Guest Contributor

Introduction to Crypto Slots

Crypto slots are a form of gambling machine that lets you take a chance with digital currencies. They’re reminiscent of old gambling machines, but they do have a surprise ending: you can bet your money using cryptos. This tends to make them an appealing choice for those interested in betting on Bitcoin or various other cryptos. The possibility of big wins has been one of the factors that make crypto slots quite thrilling. At a certain crypto slot machine, numerous players have won progressive jackpot valued at hundreds of dollars. There are a variety of jackpot sizes available, and they continue to increase as more players play them.

Is Playing Crypto Slots Legal?

In general, there are no laws that specifically apply to crypto slots. It is neither permitted nor prohibited by law. Authorities’ perspectives on cryptocurrencies are swiftly shifting, with more nations adopting a favorable stance and debating how to regulate them specifically as well as blockchain-based businesses in general.

Authorities in nations where gambling is outright forbidden, like the United States, may yet impose severe penalties on gambling websites and/or bettors who utilize cryptocurrencies. A few international gambling jurisdictions have already granted licences to casinos that accept cryptocurrency, implying that they accept responsibility for cryptocurrency operations on gambling websites. You can check out the top crypto slots sites listed in CryptoNewsZ’s gambling section.

Can You Win Real Money by Playing Crypto Slots?

They’re generally free-to-play, and if you hit it big on a cryptocurrency slot machine, you can cash out your prize money without having to pay a casino fee. It’s no surprise that people are increasingly preferring to play with cryptocurrencies rather than real money.

Tips to Play Crypto Slots?

There’s a little research you can do to improve your likelihood of victory when playing crypto slots. Here are some pointers to get you started:

Select a reputable gambling establishment. Not all casinos are the same, and some have a better reputation than the others. Before you choose a casino to play at, make absolutely sure you do your homework.
Go over the terms & conditions with a fine tooth comb. This is extremely true when it comes to crypto slots, as these games may have their own set of rules. Before you start playing, take the time to understand what you’re getting yourself into.
Play responsibly when gambling. Because crypto slot machines can be habit forming, set boundaries for yourself and don’t risk too much more than you can stand to lose.
Bonus seekers, do your homework. Some casinos have good bonus payments than in others, so do your research to see which one has the best possible deal prior to actually registering and dumping money into the account.
Keep a close eye on the jackpot in the game. Most of these games have jackpot games, which means that the prize grows as more people participate. These aren’t the games for you if you’re hoping for a fast win. However, if you have some spare time and would like to try your luck at winning a reality-changing prize, keep a sharp eye on the jackpot.
Practice with the demo before wagering real money. A few crypto slots give a free-play mode, allowing you to practise without risking any of your own finances. Before you begin placing bets, you could use this time to familiarise yourself with the game, figure out which strategic plan works the best, and estimate your prize earnings.

Related Article: Best Crypto Gambling Sites

Benefits of Playing Crypto Slots

Among the most compelling reasons for players to use cryptos are the unmatched advantages they can provide, such as instantaneity, security, and Internet of Value. Nevertheless, there are some advantages to using cryptocurrencies such as bitcoin and Ethereum to play slots. Many players would prefer confidentiality when they play – for example, folks who don’t want their betting history scrutinised when getting a mortgage! Players can also have complete anonymity when using blockchain-based currencies because they don’t have to provide any personal information other than their wallet number to connect their online casino account to their cryptocurrency account.

You must make sure that your payments are safe in order for no one else to gain access to the account and withdraw your prize money. In contrast to the traditional payment options, where you won’t see your money in the account for 3-5 business days after drawdown, cryptocurrencies provide amazingly fast and even immediate withdrawals, allowing you to enjoy your winnings sooner. With Blockchain technology and crypto-casinos, you could indeed play from anywhere in the globe. Low or no service charges are yet another added benefit of using crypto because there are no 3rd-party service costs to pay and also no payment restrictions.

Conclusion

Crypto slots are a form of gambling game that generates different numbers using blockchain technology. They’re a new take on traditional gambling machines, giving the players so much more control over their wagers because the figures aren’t generated by a single company or person. Crypto slot machines use random number generators to generate their outcomes, there is an element of luck engaged, but you can improve your likelihood of victory by planning how much you wager for every spin as well as which kinds of slot games to enjoy.

Guides

4 Tips for Managing Your Emotions When Trading Crypto

Published

1 year ago

April 19, 2022

Rachael Odhiambo

Dealing with emotions is a natural part of being human. How you feel can significantly impact the world around you, and that is an indisputable fact in life. However, the world of cryptocurrency trading can be an unforgiving place for the overly emotional. If you let your feelings cloud your decision-making, you risk selling too early, running losses, and missing out on significantly profitable opportunities had you stopped for a moment and thought the matter through with a clearer headspace.

For example, after hearing some concerning rumors, you rashly decided to empty out your XMR wallet and other crypto exchanges for fear of losing money. After some time, however, the prices bounce back higher than before, which is a cause for dismay because you lost all of your investment due to a rash decision on your part.

Hence, it is crucial to keep your emotions in check when trading. This is especially the case when you are trading in an extremely volatile industry such as cryptocurrency. The crypto market is notorious for its constantly fluctuating values and massive price swings. It can strike fear, panic, and greed in the least suspecting and cost you more than what you bargained for.

Whether you are new or experienced in dealing with crypto, managing one’s emotions is a must-have tool in your trader’s toolbox. To help you master this skill, here are some tips to keep in mind as you traverse the wild, harsh landscape of crypto trading.

Develop a Risk Management Plan

Risk management is an integral part of any kind of investment venture. You want to ensure that you have backups in place in case a situation arises that may threaten your initial investment. However, many new traders overlook the importance of considering their emotional responses and their risk tolerance when formulating their risk management plans. As a result, their plans crumble in the face of high-pressure situations.

As such, always consider your risk tolerance when developing a plan to mitigate trading risks. In fact, many trading consultants use it as a basis for forming your trading plan. By doing so, you can ensure that you are only taking on what you can handle emotionally as you work your way to reaching your financial goals. Over time, as you become more experienced and more in control of your emotional responses, you can decide to take on more risks.

Conduct In-Depth Research

One of the most effective ways to handle frantic feelings is to counter them with cold, harsh facts. Aside from your risk management plan, it is wise to conduct some research on your own that can substantiate or debunk any concerning news or rumors that might cause you to buy or sell on an impulse. For example, after hearing from another trader that one of the digital coins you invested in has died due to a lack of community support, you might be tempted to liquidate the entirety of your investment. However, after some digging, you determined that the community is still active and invested in improving said cryptocurrency.

It is also important to do your homework when picking which coins to support. Make sure to check the cryptocurrency’s whitepaper and the developers’ activities for a clearer idea of the coin’s potential. In this manner, you can feel assured that your investments have a high potential of bearing fruit in the future.

Do Not Obsess Over Market Charts

Many traders new to the crypto industry fall into the trap of obsessing over market charts. The constant flickering of colors and lights can be hypnotising to the unaware. They watch price fluctuations all day to ensure that they can take note of sudden price hikes and dips, which may lead down a path to profitable opportunities.

However, this method is not helpful to your mental and emotional health. Indeed, it can feel like an emotional rollercoaster watching prices go up and down continuously. Processing significant amounts of information for too long can wear you down over time and may instead cause you to decide poorly when an opportunity arrives. Thus, a word of advice: do not let the market chart take over you.

Take Advantage of Limit Orders

Signing into your crypto exchange after some time and learning that the value of your investment has plummeted is a reasonable fear for many traders. After all, it is not healthy to watch market charts like a hawk, and in the crypto space, so many things can happen after a short span of time. Fortunately, many crypto exchanges have stop-loss features. This is a feature that automatically sells your coins once their prices decline to a certain value. In this manner, you can feel assured that your investment remains intact, assuaging any fear or worry you may have while not on the crypto exchange.

Removing emotions from any decision-making process that you make is almost impossible. In a highly complex and volatile market like cryptocurrency, conquering your initial emotional responses and maintaining a clear head is a skill that you have to master through experience. By doing so, you can keep your eyes on the prize and trade in a manner that is most helpful to your needs.