An ICO is an initial coin offering, the equivalent of an IPO or crowdfunding. Investing in it involves high risk, but has a chance of high returns
ICO (Initial Coin Offering) is similar to an IPO or crowdfunding, only with higher risk but also with the chance of a higher return. The start-up company publishes a so-called white paper in which it gives information about all aspects of the project in the hope of raising money.
Everyone who is interested transfers cryptocurrency (most often Ethereum) to the creators and receives new tokens to the wallet of the platform on which the ICO is held. If the project does not go under and the creator completes the project, these tokens are then traded on the exchange.
Is ICO investing profitable?
Why do People Invest in Initial Coin Offerings (ICOs)? Initial Coin Offerings (ICOs) have become a popular way of fundraising for companies. While they can be highly profitable for both companies and investors, there is a large amount of risk involved due to their unregulated nature.
6 Tips to pick the right ICO
- Know the people behind them. It is critical to know the nature of the company and the teams behind ICOs. …
- Go for disruptive concepts. …
- Understand the target market. …
- Evaluate the technology. …
- Nitpick the white paper. …
- Know what the coins are for.
