A Brief Guide to Funding in ICOs
June 19, 2018 3:11 pm
Several startups boosted around $5.6 billion via ICOs during 2017, as mentioned in a report published by Business Insider. In the year 2017, various projects and startups raised capitals by issuing their cryptocurrencies. Although, initially the cumulative market capitalization of crypto values was $254 billion, an increase of $600 billion was obtained towards the end of 2017.
Hence from these observations, we could say that the ICO market has drawn the attention of a large number of traders worldwide. Here we present to you a simple guide to help you know what ICOs are and how to fund in what looks to be the best ICOs obtainable on today’s cryptocurrency market.
Technically defining, an initial coin oﬀering (ICO) represents a means of seed funding and crowdfunding, through the issuance of a brand new cryptocurrency, or a cryptographic token (mainly via Ethereum’s blockchain) to raise capital for a startup or a project.
Currently, there are more than 1,500 coins ready for trading on several cryptocurrency exchanges. All the startups have not relied on new blockchains, some of them are created using other well- established blockchains. Many of the ICO crowd sales presently count on utilizing ERC-20 tokens on top of Ethereum’s blockchain.
Advantages of ICO Crowdfunding
Traders from any part of the world can earn profits by investing in ICOs unlike the traditional means of seeking loans from banks, and funds from venture capitalists which require a considerable amount of time, as well as a substantial number of personnel and resources.
Massive profits can be earned from ICOs. Although some ICOs do not attain their speculated value, many investors and traders stepping in to bet on the high rates of the ICOs has lead to a big jump in the prices.
Step 1: Detailed analyzation of the ICO
Before investing in any ICO, it is necessary that every detail about that particular ICO is researched including the features, airdrop, bounty programs, etc. There are several websites which provide list upcoming and ongoing ICOs and provide reviews for the same. Some sites among these include,
*Top ICO List
Step 2: Will the ICO guarantee profit?
The features of the ICO have to be well researched to ascertain that the ICO will provide excellent benefits. The potential of the ICO has to assessed by keeping in mind a few peculiar aspects of the ICO such as taking a glance at the whitepaper, whether it is correctly written, the roadmap, does the ICO serve the purpose of the project’s mission and many more.
Step 3: Purchasing the tokens of the ICO
First, we begin by creating an account on an exchange to convert fiat currency into cryptocurrencies such as BTC or ETH. Coinbase, Kraken, Bitfinex, Dakuce, Bitstamp, and Binance are the best exchanges one can use to buy bitcoin or ethereum.
The ICO tokens can be purchased from the oﬃcial website of the ICO. The site would also provide you with detailed instructions on how to participate in their ICOs. Traders can adopt various strategies to trade with the ICO tokens. Given the fact that the buoyancy of ICO tokens is exceptionally high, token flipping represents a perilous trading strategy. Cryptocurrency exchanges that list ICO tokens/coins are many, but some are unsafe, as some trades have been hacked during the past years, while others were closed down after their owners sneaked traders’ coins (exit scams).
We recommend using the following exchanges: