Avoiding ICO Losses

1. Look for the Latest Information About Cryptocurrency

Investors looking to buy into an ICO should first familiarize themselves with cryptocurrencies more broadly. In most cases regarding ICOs, investors have to buy tokens with previously available cryptocurrencies such as bitcoin.

The best way that investors who are interested in ICOs can do is to start reading about the latest online projects. Nowadays there are many online sites where investors will gather to discuss new opportunities. One of them is the ICO Watchlist site which allows investors not only to discover new ICOs that they may not have known about, but also to compare different offerings against each other.

2. There is no authority to regulate ICOs in general

There are no regulations governing ICOs so it is very prone to fraud. Investors are expected to remain vigilant because some ICOs or crowdsale campaigns are actually fraudulent. Therefore, it is very important for investors to take precautions against all possible things.

This fundraising is not regulated by financial authorities so if you experience fraud through an ICO, it will be difficult to follow up or get compensation for it. It is not surprising that several countries prohibit the use of ICOs.

3. Be careful

There are at least four steps you can take to avoid fraud, the first is to ensure that project development can clearly define their goals. Second, get to know your project developer so you can find out who is involved in the project, where they are, what the business plans are and so on. Third, look for the legal terms and conditions set out regarding ICOs to ensure that any ICO you purchase is legal. Lastly, ensure that the ICO funds have been deposited in an escrow wallet that requires multiple keys to access.

That is the explanation