Investing in crypto — ICO
ICO’s or Initial Coin Offerings have been a rage in the market since the beginning of the cryptocurrency trend. For noobies looking for investment options to make some easy cash, though there is no shortcut to make money, ICO are a good oppurtunity. All you have to do is buy them when they are low and sell on high, just like stocks!
Sounds easy? Hold on…
Let’s suppose, a new company is launching a product which will be based on the company’s subcurrency, just like walmart, theta tokens and others. Now thess companies need funding to launch their product in the market. To be able to do this they offer investors some of their own subcurrency or tokens in exchange of BTC or ETH or any currency they could liquidate in return unlike IPO’s stakes in the company, this ICO company provides rights in decision making procedure but not any kind of ownership. If the product performs well and the sub currency increases in value, you could earn a tremendous fortune, but that’s very unlikely as among all the startup offering an ICO very few of them actually make it to the mainstream.
Ethereum was started in a similar manner. Ripple pre-mined 1 billion XRP tokens and sold them to willing investors in exchange for fiat currencies or bitcoin. Ethereum raised a little over $18 million in early 2014 — the largest ICO ever completed at that time.
The US raised a square sum of $665M in 2017 from ICO’s.
How to do it
Investing ICO is now made easy by the introduction of numerous online wallets, like MyEthereumWallet, where you could easily create a new wallet, save your private key and buy BTC or ETH. After which you could check if your desired ICO offering company is listed or not and make an investment. Before spending your hard earned cash on unknown companies and startups, majority of which collapse in a limited time frame, I would suggest you to conduct your research on the token your going to invest in. Afterall, they are new, unregulated financial assets.
See today’s coin market click here
All product based companies issue a whitepaper about their product on their website and also publish news about their listings. These whitepapers contain all the details about their product, their timeline and roadmap, also has listed the people currently working on the project. You should do a more intense research by searching for the background of these listed researchers. Following forecasts on the tokens from trusted sites is also important. Have thorough knowledge of the token your investing in to decide whether it has the potential to perform in the future. For more info on upcoming ICO’s and performance of previous coins in the market you could refer to websites like coinmarketcap, bittrex, binance, coincentral and so on.
You could buy ICO’s from MyEthereumWallet, coinbase and others however these platforms do not serve Indian customers, so if you are an Indian investor looking for some investment options in ICO, you could use the zebpay, unocoin, etc, to get on your first investment.
All ICO lisitngs go to website
That’s all my soon to be black suits, for any question’s please comment.