We are in a historical moment when paper money that has ruled the world for hundreds of years gives way to new forms of payment – cryptocurrencies. Given the recent developments around the steep rise in the price of BitCoin (BTC), it is time to point out more advanced ways of investing in cryptocurrencies that are not so covered by the daily media, namely the Initial Coin Offer (ICO).
What is an ICO?
ICO or “initial coin offer” is the initial offer of cryptocurrency. The term is defined as investing in startups based on a very similar technology to Bitcoin. New cryptocurrencies are extremely unstable and therefore (with successful ones) it is not uncommon to see an increase of 500% per day.
The following are examples of some ICOs that have had extremely high growth:
- NXT – return on investment 1477x
- IOTA – 332x
- Ethereum – 152x
- NEO – 114x
- Stratis – 84x
If you had invested $ 1,000 in one of these ICOs, for example, you would now have $ 84,000 to $ 1,477,000.
Here’s how to invest in one of the ICOs:
Step 1. Open an account on Coinbase
Coinbase is an American exchange office that allows us to exchange money for one of 4 cryptocurrencies – Bitcoin (BTC), Litecoin (LTC), Ether (ETH) or Bitcoin Cash (BCH).
Step 2. Open an account on MyEtherWallet
MyEtherWallet or MEW is your “wallet” for Ether currency (ETH) and for all tokens (coins) you will receive when investing in ICO.
Step 3. Choose the right ICO
This is the most important step and if this step is done well you can get your money back many times over. If you don’t do it well, you can lose it.
Some of the things to look for when choosing an ICO are: the team behind the ICO, what stage the project you are investing in is, what the media is saying about the project, what technology is behind the project, and many others.
Step 4. Replace tokens for cryptocurrencies at the right time
After buying tokens (investing in ICOs) you can buy and sell them after the ICO is over. You choose how much return you want and determine at what return you will sell your tokens that you received through the ICO.
The mistake that many people make is to: a) invest in an ICO too late b) sell their tokens too early and not make the profit they could have made.
Step 5. Sell for ordinary money
The last step is to sell the cryptocurrency for ordinary money and return the money to the current account.
These are (simplified) necessary steps to invest in your first ICO.
If interested in learning more, check out the resources we use to learn and grow our crypto knowledge:
- buy BTC(Timex.io)
- Blockchain News(one of the leaders in blockchain and crypto news)
- BitcoinTalk(the oldest and most widely used BTC forum)
- Investopedia(great articles on investing in crypto and general)
- Entropy(real time Blockchain explorer)
- CoinMarketCap(live crypto prices for more than 6.5k coins and tokens)