Beginner’s Guide to ICO Investing

WHAT IS AN ICO?

An initial coin offering (ICO) implies a way of crowdfunding, during the release of the new cryptocurrency. There are greater than 1000 coins readily available on various exchanges. It is necessary to understand that maybe not all of the cryptocurrencies have their own blockchain, as all are issued on the top of block-chain. A fantastic example is ERC-20 tokens, that reflects interoperability within the Ethereum block-chain. Ethereum has been a multi-purpose block-chain where various tokens might be issued.

ADVANTAGES OF ICO

DEMOCRATIZATION:

Anybody can actually invest and can gain the possibly big returns. Also, investing in ICO’s is a high-risk project.

IMMENSE PROFIT POTENTIAL:

Many people in the world want to spend in the “next Bitcoin”, buying the available coins at less prices and selling them again at more price. Most ICOs have only a conceptual white paper, hence authenticating a high payoff potential. Just have a look at the returns if you are willing to invest in ico.

Good Page And Image Design

Websites show the company’s image to clients as well as investors. Keeping these things in mind, we would suggest taking a close look at the way the website is made, what type of images were used, and whether the interface is simple to use or not. You can not imagine a level A+ website, companies should invest time as well as money into building quality websites. Moreover, the quality of website will play an influential role in the progress of the company. Hence, a badly-designed website proves that company is not capable of investing much time as well as money into clever marketing, and page growth. If this thing continues, then possibilities are that they’ll follow the similar trend once the ICO funds were raised.

Types of ICOs

ICOs are broadly classified by the pricing methods adopted in the token sale.

Price increases as more investors participate

In this representation, the ICO is classified into various stages. A cost is determined per token in this initial stage and is typically the cheapest price. As larger investors come in, and time passes, the cost grows in following stages. The initial investors, who are taking the risk, gain the best price per token.

Price decreases over time

This type is also known as a dutch pricing option. The ICO token sale begins at the greatest amount established by the ICO unit. As the duration of the auction passes, rate diminishes proportionately in the end. Gnosis was the very first ICO that used this dutch auction procedure. The EOS token sale is also making use of a variety of this method.

Fixed price per token

In this procedure, tokens are assigned at a fixed exchange charge. This procedure does not distinguish big investors. You can purchase as many as you want without affecting the value of the tokens. Once the sale finishes, the existing tokens are stopped for a predefined duration. They are not available for trading and transferring until this cool off time terminates. After this point, tokens become easily available on the market for trading purpose.

EXCHANGES TO TRADE ICO COINS

If you still believe in technology, then keep the coins for the medium to long duration, till your expected price target is hit. If you simply wish to flip it, then sell it once it reaches an exchange that normally lists an ICO. In case, if you have missed out on the ICO, you can purchase it immediately.

Ether Delta: An exchange which is ordinarily the first exchange to list recently published ICO coins. This exchange can be greatly complex for newcomers to trade, and it is not suggested for newcomers

Liqui.io: An exchange that frequently lists recent ICO coins. There are approximately 200 coins recorded in Liqui.

Bittrex: The greatest cryptocurrency market by volume which only allows coin deposits. This is simply the “big league” which all ICO desires to be listed on

Poloniex: The second greatest cryptocurrency exchange on the basis volume which only allows coin deposits. Poloniex is also the exchange which all ICOs desire to be listed on, though the criteria to be listed on this platform can be greatly difficult as only some coins are freshly added.

Binance: A China-based platform which has earned enormous traction, being the 10th biggest exchange based on volume is simply a period of 4 months! Binance also lists recent coins depending on consumer requirements.

Tip: Make sure you have verified your transactions after sending your coins from one area to another.

Conclusion

Depending on everything which has been described so far, keeping these suggestions in mind will surely lead investors in making quicker investments, therefore selecting the appropriate ICOs to trade in. Finally, if your gut tells you that something is not correct, maybe the best option would be to looking for many other companies for investing. There are various choices present on the market.

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