I think the ICO is an effective investment channel in the moment. In order to invest, you should carefully study the ICO project that you intend to invest. Include: idea, team DEV, technology, community, roadmap, whitepaper ... You invest when you really understand it.
Not all the ICO's are intended to make the growth of Blockchain technology more easier to use and secure. Most just want the money.
I agree it is very hard to identify now which is legitimate or not , that's also the reason why china banned ICO's , there is only a few good ICO project but most of them just want to robbed money from people , sad but it is the reality