How to be secure in your ICO investments?
Planning to invest in the most promising ICOs? ICOs are quite awesome for investment purpose, however, like any other investment, they involve risk. And if you are not careful enough, you might end up losing your investment, let alone making any profits from it. So, how do you manage security and safety of your ICO investments? Feeling clueless? Well, this article can help you as we are sharing some tips to help you make better ICO decisions and stay secure from fraudulent and bad ICOs.
What makes a bad ICO?
It is usually very easy to identify a genuine or fraud ICO, if you just look at the right things. Here is how:
- Check out the ICO website. If it is not professionally-designed, too complex or clustered, have irrelevant or insufficient information or is not easy to browse, then you know the team is not serious enough about the project.
- A bad ICO will usually be formed of a team which is inexperienced and have no or very little knowledge of the industry.
- ICO started by an existing company which has no actual use or purpose of the same is there only for money.
- No vesting for the ICO investors
- A huge or unlimited hard cap
- No real project or product solving an existing problem
- Low quality and rare discussions on blockchain communities
- Sale period is too long
- No clarification about token trading on exchanges
- No clear mention of team members and their details
- No escrow wallet
ICO Security Tips for Investors
Here’s how you can stay secure in your ICO investments and stay away from bad ICOs.
Avoid the bad ICO points
As they say, prevention is better than cure. It is, therefore, more beneficial to avoid bad ICOs rather than securing yourself after investing in them. Check out for the things mentioned above to identify a bad token sale from a good one. Avoid investing in bad ICOs at all cost. There are thousands of token sales running at any point in time and you have plenty of options to choose from. Do your own research and choose the right ICO that can surely give you good returns on your investment.
Read the ICO whitepaper to know more about the particular project. The white paper will tell you a lot of things about the company and the project. Also, check out other things like the white paper design, content, information, uniqueness, relevance, team and more.
Secure your accounts
Even though a good ICO website or platform will maintain the security of its data and users through one or more encryption techniques, it is recommended that the users also focus on things to enable more security for their accounts, tokens and wallets. One way to do so is by using secure and complex passwords. And do not reuse the same password for all your online accounts, at any cost. By using the same password for every online account you are enabling hackers to infiltrate all your accounts at once. Make sure your password is a combination of alphabets, numbers and special characters and doesn’t have any standard string. If you are not able to remember all the passwords, save them in a safe place offline.
Make sure to use Two-factor Authentication (2FA) whenever and wherever possible. It involves enabling the second layer of protection for your online accounts so that anyone trying to login will have to verify through a secondary option like a fingerprint scanner on your phone.
Smart Contract verification
Smart contracts are nowadays preferred over traditional business contracts because of their security and simplicity. Smart contracts are unregulated small computer programs which are created and defined to execute upon a certain condition. Even though smart contracts are built on the blockchain and employ their own security standards, they are still prone to errors which might lead to loss of user data or even money. Therefore, it is recommended to secure your smart contracts with formal verification by inspecting the code. You might need to take the help of an expert programmer for the code inspection, but it is worth it.
Choose a secure website
In addition to checking the design and content of the ICO website, it is equally important to ensure that the website employs proper security measures including SSL Encryption. A lot of financial transactions will go through this website during the ICO sale, therefore, it is important that the project team uses a proper security standard to protect the data and money of their users. SSL encryption ensures that the website is serious about protecting their potential investors and their investments and is ready to go that extra mile.
Do not click promotional links
One of the most common ways for hackers to hack your ICO or digital wallet account is through misleading promotional links which ask you to provide your account information in order to access an offer or get free tokens or anything else like that. Avoid clicking on such links. If you are a member of a public ICO chatroom, do not click on links shared by other members as they might lead to duplicate websites which pretend to be original ICO platform asking you to make payments in exchange for tokens. Only use the official website, possibly containing https in the URL, when investing in an ICO. Only follow the links that originate from official websites and blogs.
So, this is all you need to know and do in order to secure your investments in an ICO. This and your own research about the ICO will save your money and time. We understand you might have many security concerns as an investor while investing in a new token sale or project. It is even recommended to have some in order to be able to make better investment choices. If you like a particular ICO but worried about the security, feel free to share your concerns with the ICO team and see if they can help.
Check out the Medipedia healthcare project which is as secure as any ICO can get. The token sale is ongoing. Read more on the website.