Investing in ICOs
When the wave of cryptocurrency hit the world last year it introduced us to a new investment option – ICOs. In investing in ICOs are a lot of uncertainties that revolve around this coins or also known as tokens. Things that scare investors from investing in ICOs is that they need to do a lot of home work through the internet sources. It is an easy task to do but you need to know where to look on the internet.
When you look beyond the cryptosphere youMany people think that IPOs (Initial Public Offerings) and ICOs (Initial Coin Offering) are the same, but it is not. The only similarity is that they both present the public with investment possibilities in a business. The difference between the two is the TIME people can invest in them. In the case of IPOs it can take up to 10 years filling an IPO, then can the investors buy and trade in this company.
ICOs are constructed for mere ideas scripted on a whitepaper by a team and advisers. The whitepaper is the core foundation of an ICO. The company presents a single document before initiating their ICO. By definition, a whitepaper is an authoritative guide informing investors about complex issues and presenting an idea about how to resolve the matter. The set up for an ICO will not in this case take 10 years like an IPO.
ICOs can be much more profitable than IPOs because you invest in a business at a very early stage. You can get your coins at a very low rate. With IPOs only venture capitalists and angel investors can invest in the initial stage. ICO's most often are divided into two parts pre–ICO (private sale) and public sales which occur one after another.
Final words, if you invest in an ICO, it is always a risk, but being an investor you must know how to manage your risk. Look out for scams or the Prince of Nigeria which are still promising you lottery winnings. Be very careful and do research and more research.