How to invest in Blockchain: a survival guide by Kepler Finance

  • Kepler Finance
  • Dec 21, 2018
  • Articles
How to invest in Blockchain companies and ICO projects

Intro: an overcrowded market and a bunch of buzzwords

The Blockchain ecosystem lives in trends and buzzwords: 1k-x growth, volatility, ICO, disrupting x-industry, HODLing, transparency, scalability – you name it.

Now, if you've been in the crypto-space for a while, the odds are that you started to follow and sometimes invest in a few projects that convinced you. Say it was the team, or the idea, or the ICO ROI potential – whatever it was, at a certain point you decided to put your time and, again, your money into them. But after the buzz, the brand new token/project you added to your portfolio stopped making the news.

You have seen multiple “world-changing projects” raise and fall before, and many tokens left unlisted, or without any real use.

The latest study by EY found that a lack of fundamental valuation and due diligence by potential investors was leading to extreme volatility in ICO performance.

There needs to be a shift in investor behavior — the all-important due diligence and risk assessment needs to take front and center of your ICO investment strategy.

The most promising ICOs: the Chimera of the crypto-space

So, how do you track and evaluate a project/token in crypto?

First of all, when it comes to an ICO Story - as they say, it's never about getting the right answers, rather it is about asking the right questions. What are the right questions then? And how do you evaluate the answers that you get? To escape from the momentum of trends and buzzwords, let's consider a few, reasonable criteria which may help you find the best ICO to start investing in blockchain Technology:

Some of the data can be found on the project’s website. The rest gets cloudy, especially when it comes to industry insights.

Till now, at best, you could find pieces of unvalidated information scattered across various channels – and you even had to be lucky in order to find them. Not only there was no one-stop resource to find all the data you needed, but that meant, for investors, that they were forced to spend hours (if not days) searching for these data just in order to choose what blockchain companies to invest in, and make sure their money wouldn’t get flushed down the pan.

Now there is one single resource which saves you time and money instead of wandering around the web hunting for key-data. Kepler Finance, in fact, aggregates key data about active blockchain companies, funding rounds and teams across multiple sources, so that anyone researching the blockchain space can find it easily. The good news is that this tool is not only priceless – but completely free. Nevertheless, before digging into Kepler Finance, let's continue with our analysis.

ICO Investment: evaluation

Now that we clearly identified the key-data and the right set of metrics to evaluate an ICO, let's dig deeper into them, to see what needs to be investigated in order to orientate in the ICO investment landscape before investing a penny into a token.

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Fundamental analysis tools to analyse, filter and cross-check data

Now, to collect and verify these data may be dramatically time-consuming, having it to surf the web for hours, if not entire days. As we introduced before, though, this is what Kepler Finance is all about. More in details, it is a website for fundamental analysis which helps Blockchain investors to find the necessary information and resources to save time and money.

In fact, Kepler Finance collects all the key-data about a project and aggregates them in a free database which saves you money and hours of research.

Kepler Finance focuses on active companies, so you won’t be mislead with data about the companies that are out of business. It can help you assess the industry overall, competitors and their performance, historical data on funding rounds. It’s also good for verifying current positions of the teams within a company, finding executive team members and advisories. If a company doesn’t have a profile on Kepler Finance - it means that the team hasn’t been active yet and hadn’t raised any previous round of investments. Moreover, the team announced an upcoming feature that will allow investors to search for companies with similar investment target using industry filter and keywords.

Bonus pro-tips

As digital currencies are traditionally pegged to volatility, under the financial perspective we live in a mixed-state of uncertainty: we love them for having the potential to race-up all of a sudden, and we hate the feeling of “almost knowing what's going to be next, but never being quite sure.” That being said, in this panorama, as we cannot fully predict the behavior of the market, preparation is not a financial instrument, but rather a way of getting as ready as possible for the next momentum.

So let's now consider a few pro-tips which can help us to get a ratio between passionate gut-investment and long-term ROI, by limiting the risks in such an overpopulated market as the crypto-sphere:

  1. Always consider the actual use-cases of the project/token when you’re looking for the best ICO to invest in. Don’t evaluate it only as a digital asset, but also for its network of partners, its community and, if possible, even real-world infrastructures.
  2. Be aware of scams: first of all, check the documentation. If there's no White Paper, compliance policy and at least a prototype: don't waste your time and money.
  3. Be aware of huge bonuses: x% discounts and bundle sales may be a marketing strategy, or again a facade for an old-fashioned pyramid scheme.
  4. Never buy get-rich-fast kind of promises: a trustworthy Blockchain team will never promise you huge profits on the ICO stage.
  5. If you believe in a project, don't invest only money. Support it with your time or your influence. Write about it, mention your personal experience, report bugs: your good attitude may make the difference in creating a better community and a more valuable product.
  6. The golden-rule: As diversified as you want your portfolio to be, always invest only the amount of funds you can lose, in total.
  7. Stay up to date. Join an investors community that shares the same principles where you can gain and share insights.
  8. And remember the tools and criteria for fundamental analysis. No hype or buzzword should ever stand against your personal judgement.

Kepler Finance is currently in beta and absolutely free. Join us on Telegram or check out our website to ask us any questions and stay always up to date!

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