Any investor looking to inject hard-earned money into cryptocurrency has definitely read about it. Indeed, investing in cryptocurrency withou in-depth knowledge of the investment milieu is suicidal. Essentially, the easiest way of learning about a cryptocurrency project, is reading the relevant white papers. So, a cryptocurrency its white paper is similar to the blueprint of a building or the syllabus of a class.
You are probably aware that cryptocurrencies are online projects where its foundation rests on blockchain technology. Therefore, its white paper details all there is to know about the project. Therefore, these white papers convinces investors, business people and developers to invest in it. Launching a winning ICO white paper entails grasping the finer detail. And to do that, you have to familiarize yourself with the basics.
Here are three facts to be aware of when dealing with cryptocurriencies and their white papers:
1. There are no white paper standard rules
Indeed, this is where it gets interesting, but it is very true. No, there are no official rules regarding the white papers of cryptocurrencies. However, most of them highlight a couple of fundamental areas: Discussion on Technology, Token Distribution Plan, Incentive and Conclusion.
These areas enlighten readers on the purpose of the blockchain, the benefits, how it works, and its development process. Therefore, this includes the purpose, process, feasibility, and blockchain use.
2. You don’t need to be a computer guru to understand them
While many cryptocurrency white papers contain some technical jargon, a small amount of research will enable you understand them. It’s pertinent to note that complexity does not guarantee that the project will become an instant success. Research has shown that many jargon-riddled white papers ended up merely impressing investors and defrauding them of their hard-earned money.
When Satoshi Nakamoto, the founder of Bitcoin, presented the Bitcoin white paper, the message was clear and understandable. And today, Bitcoin is not just the preeminent cryptocurrency, it also gives others direction.
3. White papers don’t guarantee the legitimacy of projects
To date, nobody checks the feasibility of projects before the issuers launch them online. So, the developers and investors decide whether a cryptocurrency project will end up a roaring success or bad investment. Therefore, if you must invest in a cryptocurrency project, you must do your due diligence.
That is, understand what the cryptocurrency project is about, how it works and its plans toward protecting you from exit-scams. So, white papers are no tried-and-tested method of keeping your investment safe. In truth, the guide only enlightens you on the purpose of the project.
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The post Three Key Facts you Didn’t Know about Cryptocurrency White Papers by Ifeanyi Nwaokorie appeared first on BittPress.