There is no doubt that the word Cryptocurrency has been on the lips of thousands of people over the past few years. When we talk about successful cryptocurrencies, there are a few names like Ethereum and Bitcoin that are considered to be the most precious ones. However, buying them is out of reach for almost all of us because of the huge price that they command. Hence, if you believe in cryptocurrency and would like to make some good money out of it, then you will find this article interesting and informative. Because of limited chances of being able to buy successful cryptocurrencies like Bitcoin and Ethereum, your next best option is to go in for ICO.
ICO stands for Initial Currency Offer. This guide from Atecs Capital will let you know more about ICO and find out what exactly it is so that you are able to take an informed and correct decision.
What Is ICO
Let us therefore get started by understanding the meaning and scope of the question as to what is ICO. As mentioned earlier, it is the expansion of the short form Initial Currency Offer. It is a type of funding making use of cryptocurrencies. In most cases the entire process is done using crowdfunding. However, over the past few years, private ICOs are also becoming quite popular. It might have some resemblance to IPO or Initial Public Offering but here the objective is to raise funds for issuing crypotocurrencies. The promoter are free to choose the name and also decide on the number of cryptocurrencies that will be issued and so on. It is basically a token sale for those who are keen on buying new cryptocurrencies that are getting in the market using these ICOs. The funds are used by the promoters for their blockchain projects.
The promoters or the companies are free to raise funds for their projects or ICOs by offering cryptocurrencies or tokens. This is done by exchanging either fiat money or by accepting different types of major digital assets including big names such as Bitcoin or Etherum.
ICO VS Existing Cryptocurrencies
Before getting into the actual ICO investment it would be useful if the readers had a reasonably good understanding as to what are the differences between ICO when compared to existing cryptocurrencies. We also will try and find out as to why new ICO could be a better option when compared to investing in existing cryptocurrencies including the major ones like Ethereum and Bitcoin.
Here are some useful bits of information that perhaps will help you get a better understanding as far as ICO versus existing cryptocurrencies.
Better return on investment. When you do your research and invest in the right ICO investment, you do stand a much brighter chance of improved return on investment. The price of popular cryptocurrencies like Bitcoin and Ethereum is quite high and it would certainly not possible for most investors to get anything significant by putting their money on Ethereum or Bitcoin. Alternately, it would be a better idea to go in for fresh ICOs. With the same fiat money or even other forms of digital currencies, you can perhaps end up buying much higher number of cryptocurrencies or tokens.
Though Bitcoin was priced at around one cent when it first came into the market sometime during early 2009, today the value of bitcoin has surged enormously. It is almost up by 170 million percent since it first hit the market. This is simply phenomenal and it is unprecedented and unparalleled in the history of digital assets. If we take the same logic forward and think about it in upcoming ICOs there are reasons to believe that you could make huge money over a period of time.
The demand for cryptocurrencies will most certainly surge tremendously over the next two or three decades. Under such situations, it does make perfect sense to invest in ICOs. If you do your due diligence properly and then decide to invest, you are sure to make hefty profits and perhaps even build a fortune over the next fifteen or twenty years. Yes, it calls for waiting, being patient and persevering.
We also need to understand that when you are investing in Bitcoins you are investing in a digital currency that is already there. It, therefore can be stored, and also be used for receiving and sending of financial payments. On the other hand, when you invest in an ICO, you are mostly investing in utility tokens that perform a specific role and that too within a specific blockchain platform. Hence, you must research properly and stay away from blockchain platforms that are not technologically savvy and advanced. If you are able to find out even one or two such ICO investment options, you will be able to make real big money.
Hence considering the above, it makes much better sense to invest in ICO rather than in Bitcoin, Ethereum or other such big names.
Basic Trading Guidelines and Homework To Do Before Investing In ICOs
There is no doubt that ICOs are new types of investments and fundraising. Hence, you must, as an investor have the right knowledge and information before investing in ICOs. Here are a few things that you must bear in mind before parting either with your fiat money or digital asset when it comes to investing in new ICOs.
Do the right due diligence. There is no doubt that due diligence is vital for any investment and ICOs are no exceptions. In fact, you must do your homework even more thoroughly when it comes to investing in ICOs. You must spend time getting to know about the product. You must be sure that you are choosing working prototypes and not on plans.
The people at the helm of planning such ICOs are important. Try to find out more about the leadership, their profile, experience, integrity and other such attributes and characteristics. PR or press coverage is also another important point to be kept in mind while investing in ICOs. While strong and positive press reports need not necessarily mean that everything is good about the ICO offer and the team, It does indicate that the proposed ICO offer is receiving the right kind of attention from the press and also the experts in the field of cryptocurrencies and blockchain technology. The next task is to have a clear idea about the entire ICO offer details.
You must have honest and correct details about the time when the ICO is taking place, the number of tokens that will be offered as a part of the ICO, how many tokens will be retained by the owners, will there be a cap on the number of tokens or will it allow creation of new tokens in the future, amongst other things. The technology that is in use, the value additions that are being offered the market opinion about such ICO offers are also a few important points that must be considered before you part with your hard-earned money.
The Final Word
In fine, there is no doubt that while ICOs is a new animal, it does have quite a bit of promise and future. It is all about being thorough with your research and due diligence. You must work on the premise that most of the ICOs will fall by the wayside and therefore you should not make an error of judgment when it comes to choosing the right ICO offer.