Trading and investment are definitely two of the biggest things for investors who wants to earn big from their initial cash amount. Traditionally, you have probably heard about IPO’s or Initial Public Offer, but ICO investment is now getting popular with the advancement of cryptocurrency. ICO’s are Initial Coin Offers, and are investment that circles around cryptocurrencies and blockchain.
What is ICO Investment?
Similar to IPO’s or Initial Public Offers, ICO’s or Initial Coin Offers circles on placing your investment on startup business by buying its shares in form of tokens with the hopes of its value increasing later on. However, the large difference between the two is that IPO’s operates on traditional business while ICO’s operates with cryptocurrencies and blockchain.
ICO’s only circles around business that involves blockchain and its related developments and technologies. Moreover, you need to have an amount of cryptocurrencies like Ethereum to place your investment on an ICO by buying tokens or shares. Other than that, ICO’s runs on the same principles of IPO’s which aims to raise funds for a certain project or startup business.
However, do not miss to read an ICO’s white paper before you put your investment. The entirety of the project or business startup will be reflected on the whitepaper, and there you will also know about the features of the investment transactions. That is definitely a big advantage for you to know about a reliability of an ICO, instead of simply giving away your cash without assurance.
Whitepapers can also help you choose from one ICO to another, and decide where would you buy tokens. Aside from securing your ICO investment, you should also make sure that its tokens have a high probability of increasing in value. Moreover, you can also read online reviews from ICO investors, for you to know which is the best ICO on a given time.