In 2017, initial coin offerings or ICOs had made a huge impact on the world of cryptocurrencies, resulting in an influx of virtual coins and utility tokens showcasing their own unique technologies. ICOs are the futuristic concept of traditional IPOs (initial public offerings) which intend to raise funds from public investors to support the development of a project. While many cryptocurrencies are on an expected downtrend from the end of 2017 up to now, a lot of ICOs still emerged successful, even topping the total equivalent of fiat money raised last year.
While investing in ICOs can be the most profitable source of income in the cryptocurrency space today, extreme caution must always be exercised before buying into a project. In fact, around three out of five new ICOs that were ever launched have failed in various aspects. The rest turned out to be very successful, rewarding early investors who supported the development of a product or technology.
Here are the top four reasons that you should consider when investing in an ICO this 2018. Meanwhile, you can also visit the Crypto Coin Authority for a list of the best ICOs to invest in 2018.
The most ideal time to invest in an ICO is during a pre-sale period.
Considering that your prospect ICO has a very good whitepaper, a justifiable roadmap, and a competent team of experts, it would be the best option for you to get into an ICO during the early phase. Buying coins or tokens during the pre-sale period provides the greatest return on investment for early investors. This is before the supply of the cryptocurrencies gets fully distributed to the public and the coins enter the exchanges for trading.
Good ICOs have a great potential for global adoption.
Since there are no physical barriers to joining ICOs in contrast to IPOs, virtually anyone in the world with access to the internet can use the utility tokens and coins in the blockchain platforms. Most ICOs are created to solve ongoing problems on a global scale. If they prove to be ready for mass adoption, then the sky is the only limit for ICOs to achieve their success.
Your investments are heavily secured by the blockchain technology.
The greatest advantage that ICOs have over IPOs is the incredible security provided by the blockchain technology. You can send and receive coins and tokens anonymously in a digital public ledger called the blockchain. Your transactions are private, purely peer-to-peer, and the possibility of transactions to get hacked by even the most experienced programmers in the world is close to zero.
More than the project, familiarize yourself with the team behind the ICOs.
With the influx of new and promising ideas, it is easy to find a new project that will create a huge difference in the world as we knew it. You should start avoiding any ICO that doesn’t say anything about the team of developers. A good ICO should be transparent about their lineup, from the developers to the advisers. Always do a background check on the names listed for the project such as searching their profiles over the internet and professional and social media platforms including Facebook, LinkedIn, and Xing.