Are Cryptocurrency ICOs The Best Opportunity of Investments for This Generation?
After every generation, comes a new one and with them comes a new trend. You see, the ongoing generation is already on the way to its complete retirement. But, what will happen to the expenses? Well, they are not going to retire anytime soon. This is where the new generations are looking for investments through cryptocurrencies.
This budding cryptocurrency market does not rely on mere Bitcoin or Ethereum. Early investments in Initial Coin Offerings (ICOs) are now the main deal.
Get to Know About ICOs in Detail
An ICO is much like the concept of an IPO, where a company uses them to offer shares through cryptocurrency tokens. It depends upon the user whether they will buy the currency or not, depending on what they think about the company’s infrastructure. After the end of ICOs, users will get tokens as rewards. Well, you can choose to either sell them on exchanges or wait for them to bear fresh fruits.
Today, a lot of companies use the ICO model to link with cryptocurrencies. Then there are many start-ups, who have used it to fund their own business, Bob’s Repair is a great example of that. Expect to see new tokens of cryptocurrency exchanges like Binance or Kucoin once they get the limelight.
To design a cryptocurrency from scratch is something businesses dream about, thanks to the tons of benefits. However, the cost of hiring high-profile knowledgeable programmers is too daring for small businesses. Typical ICOs use Ethereum’s ERC-20 with the need of GAS (special funds) to run the network.
Evaluate Different Initial Coin Offerings (ICOs)
Keeping aside the superficiality of an ICO, the whitepaper is the next big thing, the strongest part of cryptocurrencies. If you are looking forward to becoming the best upcoming ICO, you need to explain the cryptocurrency in the whitepaper. You can mention small insights like the details of the company and the way it will use the ICO.
Coming to the next thing, you should judge the source code of the cryptocurrency to know about its competency. You should rather step back if you find it to be a copycat of Bitcoin or Litecoin. Either way, the company is not productive at all.
By doing some more judgment, you must check out if there are chances of undue advantages of the project creators. Sometimes, cryptocurrency creators design them to earn most of the tokens, which is only beneficial to them. You can also hire a skilled programmer to check out the source code for you.
Get to Know About the Functioning of ICOs
Unlike IPOs, ICOs come with their own sets of caveats because the company has full control over it. From the distribution of tokens and shares, the company does it all. Moreover, as most of the governments have no official regulations over it, the legitimacy factor springs up.
Now, if you have decided to invest in this cryptocurrency, you need to learn how to deposit funds. Bitcoin and Ethereum are the most chosen and common modes of payment. Other conventional methods like credit cards, bank deposits, and others also work though. You will get your tokens on specified dates and then you can trade it in the way you want.
The most difficult part for users comes when it is to decide whether to hold on or sell the tokens. On one hand, you can settle down for short-term profits and on the other hand, you can hold on hitting bigger numbers. Although it all depends on the fame of the coins, yet trying to liquidate them in the initial stage is tougher.
The first hitting of major exchange is usually a wild and undulating period for the price of the coins. It happens because investors either start buying them in large numbers or dump them. If they have a connection with a strong business model, it is a good investment in that case. However, the highest sale happens only when the coin hits the news madly. Suddenly, all around, you will hear news about big partnerships, merging, acquisitions, and what not! That is when the sales will touch the peak points.
Settling Down with a Verdict
The newer generations are going to put their investments in this cryptocurrency, which does have much potential to earn big. However, they must be aware of the frauds and crashes because this is, after all, an emerging market. The market is young so only time will tell how the governments and society will accept its existence.