Don’t Be Duped: 5 Key Things One MUST Do Before Investing in Any Security Token

Bitcoin (BTC), the flagship crypto soared in 2017 and hit 1700 percent growth in a single year. For those who had invested earlier before it increased to that rate harvested with two hands, but to investors who missed that opportunity or invested in BTC late are not certain whether or not they will leap any profit from BTC.

A complex global computer system is in place to handle all applications used to execute distributed ledger technology (DLT). It makes it challenging for people to understand how to integrate blockchain technology with some key aspects such as a business, global money transfer and money making.   

Very many individuals and institutions are interested in investing heavily in security tokens, but they still fear it. In case you want to invest in tokens, put these important things at the back of your mind first. 

• Consider Token as Code

All tokens issued using the Ethereum (ETH) platform are like a piece of code leading to the creation of smart contracts. There is a full list of individuals - in the code, with their respective wallet address and the balance of their tokens. The balance in the cryptos will be altered especially during their transfer, and all conducted transactions are recorded in the smart contract storage. Therefore, you will need to ensure that the crypto code & platform you are choosing is dependable and authentic.   

Check thoroughly the interface of the crypto to get a full idea of whether you will maximumly use the service or not. Don’t invest in security tokens that you cannot easily understand since it will create problems in the future. The functionality of the token must be very easy to use and understand. 

• Type of Token

As per Security Token Conferences, in the business sector, one can only gain two kinds of profit by investing in cryptos. While investing in security tokens, an individual is rest assured the he/she will make profits in the future time. An individual only needs to select a security token that is profitable, and which the team in charge will distribute the generated profit accordingly.   

Pay a lot of attention to the kind of services provided by the token and carry out your own personal research into whether those services will be advantageous in the near future. This will give you a good idea the kind of security tokens to invest in without fear. 

• Total Token Supply Cap

Check the supply cap of the cryptos that you have chosen. Remember, there are some investors that don’t share the supply cap of the cryptos. Here you need to close your eyes and make a risk and invest in those tokens, but if your heart refuses to settle then don’t risk to avoid problems. It’s also far better to consult the crypto developers since it’s the only channel to get the full idea of the profit you will earn. 

• Listing on Exchange

A lot invest in cryptos not because they want long term profits but because of speculation. For instance, the participation of initial coin offerings is largely based on the expectations that it will sell 3 times higher sooner or later. That is the reason why listing exchange will provide full idea of the rates plus the popularity of the crypto. Always invest in a crypto with higher rates since it will give you more profits.   

Furthermore, always check the reviews and ratings of users that have previously invested in that token, this will give you the demand trend. If you find out that the demand of the token you want to invest in is increasing rapidly, then go ahead and invest and vice versa. 

• Value of Token

Always consider the value of the crypto. Don’t only rely on the future halsens made by the token creators. Research on whether the token value in the market is outstanding. Consult various investors to come up with a lucid idea about the value of the crypto you are considering to plant in. Always consider both the present value and the future value of the token.   

Choose top cryptos for investment as that will give you high chances of making big profits. However, the best thing to do is to consult the experts in order to avoid falling into problems.