Despite the many advertisements you come across about upcoming ICOs and cryptocurrencies, you may be cautious since you are not sure of its benefit to the world.

The present cryptocurrencies market has experienced a sharp fluctuation due to recently created projects. However, many are not profitable. This leads to an unavoidable decrease in that token’s value.

The seven points below can assist you in preventing you from investing in an ICO fraud so be sure to read before investing in an upcoming Cryptocurrency or ICO.

Gradually Increase in the Transaction Volume

The transaction volume on the best altcoin exchanges of the coin is a vital metric you need to consider. It refers to the quantity being utilized or traded. This information can help to establish whether there is a high transaction volume and an increase in wallet numbers.

If so, it shows there is demand for the coin, and many people are using it. Significant increases in a short period might be temporary. It is essential to evaluate these metrics over a more extended period.

Promising ICO News

An upcoming ICO’s value usually entails how people view it and what the public currently thinks of the coin. If people believe a coin is declining, they begin trading, which lowers its value more. But if you want a long-term investment, you should ignore the minor hiccups.

Technological Advancement and Plan

When people want to invest in a business, they consider all its factors. They study what the company has in store to check its possibility of succeeding and the team running it also. This same method is what you should utilize when adapting a long-term crypto investment.

The feasibility of ICOs is connected to its technology, the extent of its development and the people responsible for it.

Its efficacy- is it problem-solving?

Know the ICO’s real value.  What issue does the digital token intend to solve? For instance, Bitcoin was created for various helpful reasons. It can resolve the transaction fees issue, maintain its traders’ privacy and offers users a real-time exchange in a regionalized network.

Coin Supply

Investors make another mistake when they reach quick decisions on a future ICO investment because the cost per coin is cheaper. However, it is not a guarantee of good returns.

Some people consider a project with cheaper coins better

compared to those with less supply, which are costly in terms of cost per coin value. But, an investor should check the reason why there is a fixed cost for every Cryptocurrency and the number of coins accessible for trading.

Market Cap

Knowing the market cap of a coin is essential for you. The basis of all crptocurrencies is an equation or formula. So each crypto type has a few quantities of coins. The most important reason for a prospective investor is the way it will relate to the supply and law demand.

General Market Share

You should check a coin’s potential value and its market share. It refers to its market capitalization compared to the other cryptomarket in association with its competitors. It is ideal in showing the coin’s health and long-term feasibility. A significant coin market share means many people are utilizing it.  The coins viability is much affected by the number of possible users and holders.

Conclusion

Learning about the above factors of a coin offers you sufficient data in deciding whether to invest in a coin or not.