Why you should be extra cautious with ICOs

ICOs are the big thing of 2017 and this is where it is getting really dangerous. I’m not listing all the scam ICOs we already had. Meaning that someone pretended to run a promising project and was then initially offering coins that are next to worthless. He will always cash in and all those that jump into it are getting screwed. It has never been easier to scam on a large scale if you ask me. Anyways, here’s where the problem is:

When Bitcoin started there were just a few innovators who believed in it. Others didn’t have much trust and waited for confirmations. Is this really the next currency? Will it really be important? It’s now at almost $1k, this is ridicolous isn’t it? These were the questions you heard. Lots of uncertainty. Now a lot of this uncertainty is vanished and the majority adopted to the Blockchain already.

So what do you do when you realize you missed a great opportunity and “lost” thousands of dollars because of it? You are looking for “the next big thing”, the next Currency where you can finally jump in early and see those xx,xxx% in growth. That would be awesome.

But, as you may already realize it’s easier said than done. Bitcoin was a once in a lifetime chance and you can’t make it right with investing in other coins no matter how hard you try. There won’t be a next Bitcoin anytime soon so you have to stick with what you got.

And here’s my advice: Having in mind that big missed opportunity with Bitcoin you tend to make irrational decisions, meaning that you are somewhat biased and overly excited about anything that sounds promising. Problem is in such a state of mind you fall in traps you could avoid otherwise. You tend to see projects too positively, value them too high, believe in others being stupid and buy for higher prices, and so on. And as you can already guess, this is a loser strategy. A big one indeed. Surely you may be lucky with one or two of these coins. They are either really developing great or you can sell early enough. Problem is you can’t rely on it.

Always keep in mind that with ICOs you may be in a state of mind that does not allow you to make the right decisions. Next time you feel the urge to jump in you should turn off your computer, go outside and calm down a bit. Think about it twice and try to be more sceptical than usual.

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