ICOs, or Initial Coin Offerings, have become a popular way for cryptocurrencies to raise funds from the public. However, they have also become an easy way to prey on the vulnerable, and the financial regulator recently warned customers about what it calls these very high risk, speculative investments. It warns that theres little consumer protection and high potential for fraud, as well as high volatility. Some ICOs are regulated by the FCA, but this is on a case-by-case basis, depending on how they are structured.
As the FCA says, you should fully research any ICO before handing over your money. You should only invest in an ICO project if you are an experienced investor, confident in the quality of the ICO project itself, a spokesman says. Alternatively, consider investing or trading with a regulated provider.
I don't make an investment unless I'm sure about the project I'm investing in.
Though occasionally I too get fooled and the things I was sure about turns out to be fake. But I have a better track record.
The mistake investors make are they start looking for projects when they have money to invest. But what you should do is the opposite. You should look for money when you find the right project. It's better to hold onto your crypto than to get it stuck on some useless token.