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MenuIn a cryptocurrency investment, what are the best ways to determine which coin or ICO to invest in?
Investing in Crypto coins and ICOs
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An investment implies giving money to acquire a cash flow.
Crypto coins have no cash flow. You're betting on their value increasing over time.
This is called speculation.
I made this video a few years ago discussing the two words: https://youtu.be/QEACN_QVEvE
If you'd like to discuss a business investment, please arrange a call.
Cheers
www.DavidCBarnett.com
A couple of Entrepreneurs in Halifax, Nova Scotia, Canada have built a company around answering this exact question. https://www.tokenclub.co/
For ICOs, here is what I check:
1. Is there a prototype? I almost never put my money into ICOs with no products. No matter how many things their whitepaper and roadmap promises.
2. The team.
3. Whitepaper. Is it a platform (like etheruem) or an application? Platform is riskier but it yields better return.
4. Valuation. I will pass if the valuation is too high, even when the project is great.
In a way ICOs are more similar to angel investment than buying IPO stocks.


I know a few tricks. :)
One is to check John McAffee's tweets. Every coin he tweets goes up by 50% or more within the next 24.
https://twitter.com/officialmcafee/status/944555048880746497


Hi! This is a great question. With the onset of "Meme Token" culture, the already unpredictable cryptosphere has become even more volatile and risky.
There are some bare minimums that you should look for:
1. Is the company a legal entity? (LLC, S-Corp, etc.)
2. Is the dev team doxxed?
3. Is the team skilled/experienced?
4. Is the company vision sound?
5. Is there a white paper that explains the vision and roadmap?
6. Is there accountability to the roadmap and a way to easily track company accomplishments?
7. Has the company hit any milestones on the roadmap?
8. Is there any functioning product or service already on the market?
9. What is the use case for the company's product or service? Is it filling a true need in the market?
10. Is liquidity locked? This is vital to evaluate risk of your investment.
11. Is the contract renounced? If not, what is the reason and is it sound?
12. Look for projects with lower market cap; this means that there is lots of room to grow.
13. What is the circulating supply? If it is very large, it may be difficult to build wealth investing in the token/coin?
14. Do you believe in the project? If not, you will not be able to weather volatility of the market. Find projects that you love.
I'm the consulting CMO of a Cryptocurrency company. Give me a call if you'd like to gain more insight into the crypto industry.
Nicole
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