ICO, initial coin offering and other forms of cryptocurrency are turning into the main go to for investors worldwide as the transactions are so unregulated and that people can bypass credibility checks. But the main reason is that ICO in the market is increasing and shows no sign of dropping, making ICO a better investment than commodities or stocks.
But before you journey into initial coin offerings, make sure you understand exactly what it is. Just like Bitcoin and cryptocurrency, ICO is completely digital and although companies sell them to investors, you can never actually take ownership of your coins, (tokens).
What are ICOs
Companies are using this method of selling ICOs as a form of crowdfunding to build and grow their business. As the company’s value increases and the price of stock also gain more value so do your tokens. Meaning that your ICOs will increase in price resulting in you making a profit.
However, it’s very important to do research and examine all aspects of a company before buying ICOs, as this is still a form of investing. Firstly you should always know who the company deals with, who are their partners, what are their future plans and what network and platforms do they use. It’s extremely important that you know where you stand with the company when it comes to selling your tokens back to the company for the profit that you have made.
This is particularly important today given the large degree of celebrities who are promoting ICOs. People could just see that someone famous has promoted a ICO company and would then just assume that this company should be invested in. You need proper due diligence.
Do a security check on the company that you’re about to buy from. Make sure they are registered and all legal measures are in place. Remember that since you can’t take ownership of ICOs if anything goes wrong and you lose your initial investment it’s completely gone.
Find out about the companies SSL certificate by opening the company’s website in the browser and look for a green padlock icon in the left part of the address bar. If you can’t see an icon or it’s red then avoid the company. If you do see a green icon, be sure to just double check the company’s legal standings as an extra precaution.
Have a Test Run
What many investors advice is that when you find the right opportunity and decide to invest and buy ICOs from the company, do a test buy. This means that you first buy a small number of coins to see if your investment will be at risk. If you buy a few coins and there is hacking or scams then you might lose a small amount of your money, but your large investment sum will still be safe. Think of this as a trial run for buying ICOs.
Just as stock is an investment that carries risks, so do ICOs. You can lose your money in the blink of an eye, or you can make an incredible amount of profit. No one can predict the exact outcome of any investment so if you don’t fear to lose and like the chance to reap a potential reward in the near future then investing in ICO is the ideal opportunity for you.