ICO- Invest before The Rest!!
2017 so far is turning out to be an historic and exciting year for the crypto industry. If you have been participating in cryptocurrency circles, then most likely you are already aware that going against conventional wisdom does have some value to it. After all Bitcoin was built based on a foundation of rebelling against centralized financial authorities and fiat currencies. We have witnessed Bitcoin’s bust and boom cycles – and cryptocurrency has been able to prove it is able to survive along with fiat currencies. In addition we have seen dozens of cryptocurrencies rise (and some fall). Now there are braver individuals who are venturing beyond traditional cryptocurrencies and seeking their fortunes in a new way of investing called Initial Coin Offerings
An ICO is a process where funds are raised by cryptocurrency startups for new ventures. An ICO is similar in many ways to crowdfunding, except they usually are designed for raising funds to be used in cryptocurrency projects, that may not be able to qualify for the capital-raising processes of venture capitalists and banks. Throughout an ICO campaign, potential investors and enthusiast will purchase some tokens from a new cryptocurrency project. Tezos recently announced the biggest coin offering to date, when it raised $232 million worth of ether (ETH) coins and bitcoin. Tezos is only part of a set of intriguing companies who are currently in the process or have been through an coin offering already.
Buying Into An ICO
First of all, I wouldn’t recommend that you invest in an ICO without being familiar already with cryptocurrency operations like encryption, fees, exchanges and wallets. If you are familiar with basic crypto procedures already, then after you find an opportunity you can just head for their website. Just yesterday, I invested 2 Ethereum into a mobile application called “Status” for works to integrate ETH technology. On the homepage was a big green button that said “contribute” on it. After I clicked on the link, there was an individual address created so that I could deposit funds into it. However, you can’t just deposit funds from a wallet like Poloniex or Coinbase. A supported wallet like Mist or MyEhterWallet.com was needed. You get 10,000 SNT (status) token for each 1 ETH invested. I basically got 20,000 tokens, which were worth around 3 cents each. Now I am waiting patiently until they release the coins into the market. It might take a couple of months for that to happen. There have been many great ones and may more to come! We will be offering our services to investors who wish to buy into these, yet dont have the time or the know how! Simple consultation fee or % of the invested total!
If you would have gotten in on the Populous token (PPT) or The Veritaseum run.Both of which I must tell you I am personally invested in. You would be extremely happy, and wealthy sitting on a beautiful investment. Getting in early can make all the difference and for some investors it has! We recommend due diligence and lots of research before pulling the trigger on any of these tough. Investing is up to you.
You are given the opportunity to purchase the coin prior to the general sale taking place. So usually you purchase a cryptocurrency through going to an exchange like Bittrex or Poloniex. When it is available on the open market it is a general sale. However, with an ICO you are basically purchasing it pre-sale, prior to it being offered to the public on an open market. It provides you with the change to receive the coin at the lowest possible price since it hasn’t been placed on the open market and hasn’t been bought and sold or speculated on.
Usually after a coin has been released into the market the price of it will dramatically increase because of all of the speculators who were late to the party purchasing it and and all of the news articles that are released that give it an even further boost. Get in early, since this can be a 3 to 10 times increase in value.
Drawbacks and Final Thoughts
ICO’s can potentially be quite risky. There are some coins that go through the ICO process that don’t ever end up being released in the open market since the startup or project fails. This is usually due to either issues in development or a lack of interest. Therefore you are basically purchasing on a total punt. However, a majority of Initial Coin Offerings do have a vision backing them and if you see this vision turning into a reality, then that is the ICO you should be investing in. So only invest in something that you are passionate about. If all you are thinking about is a big gain, you will regret it even more if the project ends up failing.
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