Buying tokens of ICO-projects is a potential opportunity for earnings by the method of investment. In 2017, cryptocurrency startups managed to raise over $ 200 million for the first time through this type of crowdfunding. The average per week is initiated at the 3 ICO. And this figure promises to grow several times in the future. Investment opportunities are growing.
Are all of them good? Not all. To determine the attractiveness of the project, examine White Paper and Roadmap. The white paper describes the technical characteristics of the ICO, investment attractiveness, the project team and their vision. The roadmap demonstrates the main stages and goals of the startup in chronological order.
When buying tokens, be sure to conduct a comprehensive analysis. Find answers to the following questions:
What is the token this action, koin for internal calculations or unit of reward? What are the features of its use? What should happen to increase the value of the token? Does it depend only on the project itself or any external factors? The niche in which the project works. To better focus on the ICO in the field of innovation, blockchain and crypto-currencies; if the project will exist without the coin? For example, investment funds can easily accept dollars instead of tokens. It is desirable that the use of blockchain and tokens was rational and necessary. Potential for growth. How much can a token increase in value, how attractive is it for the masses?
How much does a token cost and how justified is its initial price? If you are offered to buy 1 Gigabyte of cloud space for 100 tokens, worth $ 1 each, then this is an unjustified price.
You can buy tokens at several stages. On PRE-ICO, when the main crowdsale has not started yet. Then their cost is low. However, it is still unclear what a startup is and what its prospects are. To buy enough to register in the project and then transfer the funds to the specified wallet.
Purchase tokens during the ICO
Buying during the ICO is less risky. This means that at least the creators managed to collect the investment of coin offering initiation and the audience demonstrates a certain interest.
Buy tokens on the exchange
A safer option is to buy directly on the exchange when tokens have been added to the trading pairs. This is a sign of market acceptance of the project. Such an analogue of the" public status " in the cryptocurrency world. Only instead of shares the auction coin.
There are special services for monitoring, statistics and evaluation of ICO. For example, on the website of ICO Rating you can see the risk assessment, the level of HYIP, and the overall assessment of the startup.
The service IcoStats is the base of most successful projects in the ROI, the total amount of funds collected, etc. Other useful services for the analysis of the attractiveness of ICO: ICO Tracker, Schedule Coins, ICO-List TokenMarket and others.
Consider the main advantages and disadvantages of this type of investment as the purchase of ICO tokens:
+ High liquidity due to market access;
+ ROI of the most successful projects passes for 10 000%;
+ Ability to use tokens inside the platform;
+ Available form of investment;
+ A large selection of niches and directions.
– The lack of regulation;
- There is a risk of running into scams;
- The cost of the coin is, in any case, susceptible to common
the situation on the cryptocurrency market.
A token is both a digital promotion, a payment option, and a donation/reward tool. It all depends on the project in which it circulates.
We hope that this little acquaintance with tokens at least partially helped to answer the question: "what is it?". Of course, the further use of this knowledge is your own business. Let's add that buying tokens is a potentially profitable investment option.