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ICO Investing: How to Purchase Initial Coin Offerings


The most important factor to investing success? getting in early. Imagine yourself as one of the first investors in a tech giant like Google or Facebook such as. And, imagine what your life could be like if you had the opportunity to purchase ICO (initial coin offer) assets for a huge cryptocurrency such as Bitcoin and Ethereum?

Your portfolio might appear quite different, isn't it? But, there's always a chance to get in on the next big IPO or ICO.

In this article in this article, we'll look at ICO investing, how to purchase ICO coins, as well as where you can find ICO listings. In short, if you're still all "IDK" about ICOs, you're in for a crash course.

What Are ICOs?

These are very similar to IPOs and IPOs. They are the first public offerings that are the first time that the public is able to purchase the stock via an exchange. The big difference is that ICOs are a public sale of cryptocurrencies, while IPOs focus on stocks.

Additionally, just like some investors invest in IPO investment, they are also able to participate in ICO investing, as well. This basically means investing in either a stock or cryptocurrency, when it's released to the market with the hope (or hope) that it'll increase in value.

In recent years, ICOs have become an enormous market. From 2016 to the end of 2019, over 7,400 ICO attempts were attempted that raised a total of $35 billion.

How ICOs Work

Businesses go through an IPO, also known as going public, as a way to raise funds. In essence, they're selling part of their holdings in exchange in exchange for cash. Similar logic is applicable to the ICOs, which are crowdfunded efforts to fund a new cryptocurrency.

An ICO could be defined as "initial coin offering," and lets crypto investors gain access to the base of cryptocurrency startups. These investors make up the first wave to invest in new cryptocurrency, and thus could benefit the most (and that's a huge "if") the crypto worth of the crypto is appreciated.

How do an ICO actually works? It's different from an IPO that has regular procedures that involve several parties and regulators. It's more of a do-it-yourself process. In brief, the person or team behind a brand new crypto describes their strategy in an official white paper on the new system of crypto that explains what it is and what it can do.

Then, the crypto creators will focus on a marketing push to get people to participate and invest in the cryptocurrency. People who want to take part and invest will be able to exchange cash for the project's coin or token.

Creators of cryptocurrencies collect money from some investors by making the coin available before the ICO to purchase. During this time they usually issue coins for sale at a low price, frequently to gain capital to continue to develop the currency.

This is, obviously an overview, but things can be much more precise. However, this should give an understanding of how ICOs function.

How to Value ICOs

IPO valuations usually reflect thorough study of the company's financials and performance. The method of valuing ICOs can be differs, as there's no such company's books of financials to study.

The resulting hype as well as investor sentiment form the primary basis of ICO valuations. In general, crypto assets can derive their value because of their functions as cryptocurrencies or utility tokens, or security tokens used in specific networks or systems. This makes it difficult to estimate a value for monetary purposes right from the beginning.

Investors usually determine the worth of an ICO value by looking at the possible applications that the coin could be used for and in the coming years that could bring about price appreciation. If investors are more excited the more likely it is that prices could increase, however this is not the case as well.

Research suggests that negative investor attitudes can cause negative first-day returns for an ICO which may affect the performance of the currency for at most six months.

If this sounds like a risky investment, just because of the risk. In fact, ICOs are among the most risky investment. Fraudsters and scammers are able to easily swindle investors with little knowledge of the crypto sector, and regulatory authorities are still trying to determine their role in the space.

How To Buy ICO Tokens in Four Steps

Are you unsure of how to buy ICO tokens? Follow these four steps:

Step 1: Register for the ICO

The first step towards purchasing ICO offers, or to get inside the first floor of a brand new cryptocurrency as being an investor is conduct a little homework. This involves researching new or potential ICOs, as well as perhaps even reading some white documents.

While you're reading the white paper you'll want to find out all there is to know about team behind it, and whether the token has sparked interest from investors elsewhere. Should the White Paper does not include details about the token's source code and security features, that's possibility that it could require more due-diligence.

If you've discovered an ICO that interests you and you're interested in participating, sign up to part in it. It might take some work but you'll find it easy to track to a pre-ICO checklist and ICO listings on websites like CoinDesk, ICOBench, TopICOlist.com, ICODrops.com, and CoinMarketCap.

Each ICO generally has distinct registration procedure. So, if you're interested, look around to find the proper procedure, and follow it whenever you feel it is necessary.

Step 2: Set Aside Funds for Payment

In the next step, you'll have to prepare for investing when that time arrives to actually put money up. It's about having funds set aside to facilitate the investment.

You'll need either fiat money, such as dollars, or another crypto in order to complete an exchange, as needed (typically one of Bitcoin or Ethereum one of the biggest cryptos). Additionally, you'll require money and or crypto standing in a virtual wallet in order to complete the exchange

Finally, make sure that you're a member of the correct or appropriate crypto exchange for the ICO. Some exchanges restrict investors to trade specific cryptos. You'll need to confirm that the ICO you're considering is listed for the exchange you're focusing on.

Step 3: Make the Exchange

This part is pretty simple You just need to make the trade! The details here will vary on the individual ICO exchange, as well as methods.

Step 4: Receive and Store Your ICO Purchase

Ideally, upon the conclusion of the transaction and the transaction is completed, your new money will go right into your cryptocurrency wallet (whichever of the different types you pick) for safekeeping. Then, it's simply a matter of taking a breath and letting the market dictate what happens with your new investment.

Remember that ICO investment is by nature risky and there's a high chance that things could turn out to be unfavourable. Therefore, it may be worthwhile to take a close look at the ICO along with other news surrounding the new cryptocurrency, so you can make the right decisions on when or if you should sell. The advantage of ICOs with IPOs is that there is no IPO restriction on sales.