Safe participation in ICOs
Participating in ICOs has had a lot of bad press, but the overwhelming evidence suggests that a clear majority of ICOs are legitimate businesses. Statistics suggest that an evenly allocated budget spent on every single ICO since 2014 will have resulted in more than a 1000% ROI in today’s time.
But that does not mean that every ICO on the market today is viable.
Reading the whitepaper in extreme detail and fully understanding what this ICO is looking to do is absolutely the key in understanding whether you should take part or not.
We also advise that anyone looking to participate in an upcoming or ongoing ICO must evaluate the team behind the idea. In the past, scam ICOs have often used fake photographs, names, advisors and LinkedIn pages. These things can easily be researched online
Avoiding scams and scammers
Ill-intent in the world of cryptocurrency and ICOs can be difficult to spot but with a solid understanding of what to look for, it should start to become a second nature.
The biggest red flags for potential scammers have already been listed above but if anything causes suspicion, you should immediately research further.
Ensuring you send your public key to those sending you money and making sure the key of the recipient is correct is crucial.
Certain viruses have been reported to force your clipboard to use a different key when you attempt to paste in your details - so be absolutely certain to double check.
If, when starting this lesson, you were concerned about security issues when making your first steps into the world of cryptocurrency, this guide should see you to safely making your first transactions.
As with any industry that deals with the holding and transferring of items of value, the world of cryptocurrency can be fraught with danger if you don’t know what you’re doing.
However, provided you are able to adhere to the basic security procedures outlined in this lesson, there is no reason you should be caught out.