Investments in cryptocurrencies ICO and how they work, are one of the world economic trends. Cryptocurrencies provide an escape route from economic monotony, characterized by governing those involved.
The economy emerges as a means of survival, focused on the production of goods or services, such is the case of the very famous cryptocurrencies, its beginnings go back more than a decade.
Cryptocurrencies are not more than digital money that is produced through mining, using computer equipment, such is the case of Bitcoin mining through the PC.
What does the acronym ICO mean?
The acronym ICO is the initials in English of Initial coin offering, what does initial coin offer mean.. And it is an acronym widely used today for the appearance of cryptocurrencies. And through the ICO you can finance the birth of any other virtual currency. As was the case with Bitcoin and this is done as we already know through mining.
What is a cryptocurrency ICO and how does it work?
ICO cryptocurrency investments and their operation provide a parallel form to the types of traditional economic systems. An ICO in the world of cryptocurrencies It is a form of “initial coin offering”.
The above means that an ICO is a cryptocurrency that is in its initial phase of availability., for the buying and selling process. The establishment of the price of the same It is granted in relation to the laws of supply and demand.
The more desired a cryptocurrency is, more expensive is. However, when ICO is in process, starts at a very low price, Thus, your success depends on the demand.
Investment processes To make a profit on a cryptocurrency, they are quite relative and ambiguous, well, you could expect anything, in a short time any currency in the initial phase could have quite a significant rise.
It all depends on how the cryptocurrency markets are, including the most famous ones like Bitcoin, Litecoin, Ethereum, among others and especially those that are in the initial stage. However, in any of the phases it is imperative to make investment decisions.
Are the cryptocurrency ICO markets safe?
Investments in cryptocurrencies ICO and their operation establish a reliable way to trade digital money. Many question its safety and some exaggerate, thinking it may be a lie. The truth is that they are real and quite safe.
The possibility of economic growth is very possible, however it must be marketed boldly and, if you still have doubts, you must be calm, because all processes related to cryptocurrencies are supported. by ‘Blockchain’ technology.
The technology in question allows to configure 100% security between user transactions globally, without any intermediary, providing an effective way to protect assets.
It is highly recommended to venture into this economic vanguard, as it provides a form of parallel economy, since the importance of the day-to-day economic life of traditional banking markets is in decline.
That way you can have a certain type of financial independence., without depending on third parties or economic institutions, Red tape is eliminated in digital economic processes. That indicates that any cryptocurrency process is positioning itself above the old way of trading the economy..
Advantages of moving away from the everyday life of the traditional banking economy
Investments in ICO cryptocurrencies and their operation are carried out more frequently than in previous years. The bank money markets o Stock market functions have ranked higher for decades.
If you are one of those he's tired of the monotony of capital markets, especially those of traditional banking, can take a turn of 360 Degrees when entering the cryptocurrency market.
Many benefits can be obtained through capital markets, but less likely to make higher profits, in order to difference with the digital economy of the cryptocurrencies that offer greater profit possibilities.
The truth is that it is clearly valid to want to enter any money market. However, it is advisable to do it in the digital economy of cryptocurrencies. The amount of digital currencies out there is impressive, some are more successful than others, in the end, they belong to the same system.
On the other hand, it is very necessary to be aware of the capital markets, because, in this troubled world, the fact of generate profit at any cost.
How to choose a good chip? Make sure very well before
This is one of the most important aspects when investing and is choosing a good touch that can offer you profitability. You need to study the market, but as a general rule it is better to invest in those that offer you long-term profits. Therefore, it is preferable that you consult lists of the currencies that have the highest purchase rates.
How to buy tokens during an ICO
Athough it does not seems, buying tokens is a very simple operation to do and you only have to comply with the steps that we will list below:
- Register with an ICO
This first step is very important, since you can find ICOs that do not offer you to register so you can buy tokens. Something that can be very dangerous, therefore we recommend that find a website where you can register for the ICO. And then you can do the whole verification and identification process.
- Buy cryptocurrencies
Once you have completed the registration and verified your identity, now you can buy the tokens and in this case we recommend buying Ethereum. And in this case you will buy Ether, what is the token that will be sold during ICOs. The amount of minimum tokens you can acquire will be determined by the ICO you are using and will be indicated in the White Paper.
- Pass your tokens to your wallet
Performing this step will offer you to be in control of your cryptocurrencies and not let your tokens remain in a wallet that has been provided by an Exchange.
- Buy the chips
At this point you will have the possibility to buy the ICO tokens, as long as you have the necessary funds to make the investment.
- Send your tokens to the address provided
This step is also very important and you should make sure that the address they provide is real and not a scam. You can easily check that it is a legitimate website by the number of transactions what to do.
- Receive the tokens at your address or wallet
Once you have sent the funds, you must wait for the tokens to arrive in your wallet, since this is the first time you have performed this operation you may be a little nervous. But you must be calm since although this process may take longer than you think, even months your investment will be safe
How to evaluate ICOs
In the market we can find many ICOs and each one of them promises you benefits and great profits. But it is always necessary pause a moment to evaluate each of them, to find out what an investment opportunity really is. But the most important thing is to be able to make sure that this ICO is not a scam and that we lose our investment.
Financing in its different modalities
Every project needs financial resources that have to come from somewhere and therefore it is necessary to resort to different sources of funding. And then we will explain each of them, than his Subversion, the sale of shares and debts or loans.
By sale of shares
In practice, financing from the sale of shares is the one most used today, since it can be done in different ways. Either through public or private offer and in this way the shares that are sold can make a profit if the price at which they were initially sold rises in price in the future.
With debts or loans
Debt or loan financing is simply ask for money either from a financial institution or any public institution that is dedicated to this work. You can also turn to people, but their interests are usually very high. Therefore, when acquiring money in this way, you must pay an interest that you have to know if you can cover it.
Grant
This is another form of financing that can be very appropriate, especially because in some cases the borrowed money is not returned. The subsidy is a type of loan made by a public or private body. But without going with her the obligation to deliver the borrowed money or some type of interest.
Other modern financing methods
But these ways of raising money or obtaining financing can be a way that creates many obstacles or problems.. Therefore, New financing methods are being adopted that are becoming very popular. And in this case we are talking about Crowdfunding a way to get money and thus be able to finance our investment projects.
Fundraising
Currently, the Crowdfunding to obtain the resources that are needed and this through a network of people. This money is usually collected in a certain period of time, which in most cases is one month. And we can find many web pages that are interested in financing your project, They can also be called donations, loans, rewards, etc.
How to detect when an ICO is a fraud
It is very important that before diving into this virtual financial world, may recognize some aspects that can reveal a fraudulent ICO. The first of them has to do with the Whitepaper, Since in some cases it is non-existent or ensures that you can multiply your capital if you invest in Bitcoin or Ether because they are currencies with constant growth.
This is a gigantic lie and it is only leading you to invest to lose your money, since no ICO can guarantee that you will double your investment. They also often use the Ponzi scheme where they ask you to find people to join the ICO. As you can see, if you study and know how ICOs work, you can make investments with a calculated level of risk.
