There's an old saying in the investing world that says "always invest in your gut." Alright, maybe that's just a made up quote but that's not the point here. The point that your gut is not always right. Sometimes, it helps to get advice from an expert. Warren Buffett is the expert in this scenario and he has a few key tips to help you on your ICO investment journey.
Some people see names like YouToken (YTN), Ripple (XRP) and Bitcoin (BTC) as just letters on the chart. They are nothing more than symbols to be bought, traded and eventually sold for a profit. But Warren Buffett doesn't think you'll last long with that attitude. Instead, he says treated every ICO like a personal interest in that business. Generally, speaking, good businesses produce profitable results. So don't just jump on a bandwagon because one project is showing a good "chart pattern." Invest in a business you actually think it has promise.
This one seems like a no-brainer but you'd be surprised how many people out there are investing with borrowed money. Why is it bad to invest in an ICO with borrowed money you ask? well, it's not so bad if everything goes great and there are profits all around but what about the other scenario? Sometimes, an investment entity can take a hard, fast dive. Suddenly, you're out on a bunch of money and it's not even your money. That's a great way to amplify stress and even lose some friends along the way.
WARREN BUFFETT ICO INVESTING TIP #3: AVOID HIGH FEE INVESTMENT
This one doesn't really pertain to ICO but it's still a valuable life lesson that anyone can relate to. The key takeaway here is to invest in a wide range of stocks and hold them for a long time. That's a better strategy than quick-trading or investing in high-fee companies run by those dirty Wall Street professionals who say it's their job to help out little investors like you. Sorry, but they don't actually want to help. That's what Warren Buffett says anyway. Trust him if you want.