How ICO works
Let's imagine that one potential investor has an amount of money that he wants to invest in some new cryptocurrency on the market. But he does not know where and how to find a promising project, a startup that will not only pay off in the future, but will also allow you to earn twice as much, or maybe ten. There is an ICO calendar that shows future placements and some relevant data.The first thing to do when you find a project is to make an electronic wallet for bitcoins or other necessary currency. Secondly, get acquainted with how cryptocurrencies work, their features and learn how to use a wallet while conducting various transactions. And the last thing is just to find the site of the desired project and invest your funds.At the ICO platform, everyone will be able to present their project, whether it is a small start-up of an international company or a small amateur project.
How to choose an ICO for investment
The safety of investments in ICO projects is not guaranteed in any way, and today there are no clear laws that would regulate such projects. Before investing, we recommend:- do not rush and carefully study the agreement on the sale of tokens;- all important rules must be published on the site in the form of a public offer, which contain all the details;- it is important to have a ready-made working prototype of the upcoming project;- evaluate how well the legal side of the ICO project is developed, how a brief business plan is drawn up and how technical issues are well described and whether there are financial justifications for the project with clear figures and links to official sources.Moreover, the site should contain information about the team involved in the creation of the project, because this is the main factor on which success will depend. Ask how experienced the developers are, as well as what their reputation is. It is also important to have an intermediary who keeps the funds in case the project fails. Good and promising projects get the support of several intermediaries at once; their absence may rather cause suspicion that you are working with scammers. Also find out how and in what way the project organizers communicate with their audience. Visit some popular thematic forum and check out the rating of ICO projects.
Benefits of ICO
It is worth highlighting two main advantages of ICO: the first is the use of cryptocurrencies and blockchain technologies, and the second is a strongly formed secondary market. Let's look at them in more detail.With conventional investment, the investor’s funds are frozen for a long time, and until the startup enters the stock exchange or is bought by a large company, the investor cannot exit the transaction, which in turn is inconvenient for him. It takes a lot of time, so this story is more popular among big experienced players.There is no such problem when investing in new ICO cryptocurrencies, because the received tokens are immediately sold and bought on cryptocurrency exchanges. Such investments are made less secure and help to objectively assess their value. Moreover, the input block is quite small - with only a hundred dollars, you can become an investor in a promising project by purchasing just a few tokens.
