Investment In ICO. How To Benefit?

David Kemp

The crypto market is gaining huge popularity. Every month dozens of projects are registered, thousands of users wish to take part in them. ICOs are held for this purpose. Thanks to it, developers receive the necessary funding, and investors become participants in the startup they believe in.

ICO is the initial coin offering. According to statistics, during 2015-2016 the volume of investments in cryptocurrency projects increased by 1300%. The next two years showed even more impressive growth – 6600%. No financial industry has been able to approach such dynamics before.

ICO are so success for a umber of reasons:

  • Easy to raise capital
  • You can invest with just a few dollars
  • High speed of transactions
  • The possibility of obtaining super-profits

ICO benefits for startups

Initiators of start-up projects often need funding for their activities. To do this, they issue tokens that investors can buy for fiat or cryptocurrencies.

ICO is carried out at the initial stages of the project development or when additional funds are needed. Usually, after the formation of a full-fledged infrastructure, there is no urgent need for financing. Aspiring entrepreneurs use offering of the tokens for a quick search of investors.

ICO benefits for investors

Placing tokens on the market attracts many individuals and organizations. It has many advantages:

  • The ability to make small investments. Almost everyone can buy a token.
  • Great opportunities for earnings. Often, the amount of token sale is many times higher than the purchase price. Sometimes the profit exceeds 1000%.

How to choose the right ICO

Before buying tokens it is better to take the following steps:

  • Learn ins and outs of the project. To do this, you should study the business plan, get acquainted with the objectives of the platform, evaluate its benefits and much more. It is better not to invest in projects in which there are blurred wording and terms. The ICO plan should be clear and understandable.
  • Goal analysis. Examine each stage of financing and the timing of its implementation. The aim of the project should be realistic and clearly formulated.
  • Meet the team. The project should be implemented by experienced and well-known developers in the crypto-currency industry. They should have a successful background in blockchain projects. Try to learn about the achievements of the development team members.

Each side of cooperation benefits from investing in ICO. Of course, investors should carefully choose a project, because according to statistics, about 80% of the platforms are unprofitable or fraudulent. On the other hand, you need to follow risk management and not invest all your money in one company. On our portal, you can find a lot of information about ICO and cryptocurrencies. Study it, it will help you to understand the topic well and avoid many problems.