How to find the best blockchain companies to invest in

  • Kepler Finance
  • Dec 03
  • Article
cover image for the article that guides you how to find and evaluate blockchain companies to invest in Background photo created by ijeab -

Initial Coin Offerings (ICOs) made headlines in 2017 as prices for digital assets climbed through the roof. Would-be investors bought in a feeding frenzy, with little understanding or regard for what the blockchain companies were offering.

Skyrocketing prices aside, the ICO investment industry caught attention for other reasons that are still valid even when prices are lower. One important difference between a blockchain investment and an investment in most other asset classes is that making an investment is easier. Under most circumstances, you only need a wallet to place your investment into and an account at an exchange for buying and selling cryptocurrencies. So the barriers to entry for an ICO investment are a lot lower than in other asset classes.

Digital assets also give investors the opportunity to become involved in the projects that solve problems they face and understand. For example, it’s a lot easier to become an evangelist for your favorite blockchain startups changing the way we treat healthcare, or beta test their solution, and add value to your investment along the way. This ability to contribute to the growth of the project can be fulfilling to some.

Then there is money to be made in ICO investment. However, now that the initial euphoria has worn off, would-be investors are asking more questions about potential investments. The lack of a safety net and thoroughly-defined oversight and regulation has hurt more than one investor, and on the retail level, the idea of jumping into ‘something labelled blockchain’ and coming up with a winner is finally being laid to rest.

The dangers of ICO listing sites

Would-be investors have begun to ask questions. One of those questions boils down to “Where is there a list for finding the best ICOs?” But investors should be asking themselves instead, “Is finding a list a good idea in the first place?”

Finding the best ICOs is a whole set of problems if you’re using lists. First, these lists have a short lifespan – most likely they’re already out of date. Then, the sad truth is that most places on a “best ICO” list are paid for. But don’t let your fear of missing out get in the way of digging a little deeper when you think you’ve found something good. If a listing looks good, check twice.

Verifying information can be a problem. The data in these lists is often inaccurate, incomplete, and hard to verify. There’s no incentive to be accurate when a company trotting out a half-baked ICO is paying to be on someone’s list. There’s no requirement to be accurate, either, at this point, from a regulatory perspective.

So what do you instead?

Find the most promising ICOs

It might sound daunting, but finding the opportunity is just a first step before the most important part - due diligence. One good way to do this, especially when you’re starting out, is to find a resource that is searching for worthy projects.

There are some ICO trackers, though, that you can use to find worthy ICOs:

You can find other potentially useful resources. But always do your own research! It’s getting much easier now, with a variety of tools for fundamental analysis that we’ll discuss further. And remember - rely only on the opinions of the people and groups that prove their expertise through successful investments.

Fundamental analysis with Kepler Finance

Doing your own research can take time, but when you’re done, you’ll actually know something about your investments. Start off answering questions about the company, then look at the industry in which it works.

Here are the main questions you need to investigate:

Find this article useful? Sign up for our weekly newsletter
This email adress doesn't seem valid.

Your fundamental analysis tools

To sum up, some of this information can be found on the company’s website as well as the Whitepaper and technical description. To find the major part of the data above, here are the go-to websites:

Lastly, here are some pro tips for you to consider while you’re ICO hunting:

Finding what ICOs to invest is well worth the effort, and can be deeply satisfying. And with the right tools, it doesn’t have to be hard!