Jul 29, 2021
ICO stands for Initial Coin Offering. It’s a stage when a cryptocurrency issues some sort of valuable tokens to attract funding, which is necessary for the project to continue evolving. Basically, it’s similar to crowdfunding. But while in most cases people receive metaphorical tokens of gratitude from funding a project, ICO is a real way to invest in crypto as they receive tokens that are worth real-life money, almost like a joint-stock company. One of the memorable examples of investing in cryptocurrency via ICO is the Chinese project NEO. Originally, its token cost a mere 3 cents. Eventually, it reached the $180 mark, which was the peak gain of the token. Ethereum investment is also a legendary example of investment in cryptocurrencies . While its initial ICO price was about 30 cents, currently it's traded at $3,038.55. As you can see, it can be quite profitable. Especially if you prefer long-term crypto investment, as it takes a few years for a token to achieve an impressive value. However, this market has its own downsides.
According to ICOBench — an ICO rating platform — there are 5728 ICOs in progress at the moment. From a certain point of view, it reminds of the infamous .com bubble, which burst in 1998. Of course, you can’t physically invest in every single ICO, unless you have millions of dollars at your disposal. How can you be sure that an ICO that you’re interested in isn’t a scam or a soap bubble? Is there a way to detect a legitimate opportunity similar to a Bitcoin investment? Of course, there is no 100% guarantee. But a more or less reliable ICO has the following signs:
Another good sign is that the project in question gets attention from respectable media — like Forbes or Business Insider — or a review from an industry specialist. Search through the web for any comments or expert opinions related to that ICO.
While closely watching the ICO trends may prove beneficial, it’s also worth having a back-up crypto-investment strategy. The best one is to invest in a mining hosting service. The concept allows you to literally rent computing power that is used to mine Bitcoin, Ethereum, and other major cryptos. Basically, such a service allows you to rent a crypto-mining farm at an affordable price and withdraw cryptocurrencies or get fiat from your investments. It’s a killer alternative, which liberates you from the hassle of setting up your own crypto mining rig, plus:
So, while you search for another promising ICO, don’t forget to protect your money with the crypto investment. Happy hunting!
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