ICO is a process of selling project using crypto tokens. It is similar to an Initial Public Offering (IPO). Under IPO, investors can purchase share of a company. Before invest in ICO you should consider some points. First of all, you should know what you’re buying from company. You’ve to be aware about what the token you buy is linked to.
Second thing, found all the information of company. Means who are the partners of company. How’s company exchange their tokens for electronic money. Third important detail is an SSL certificate. SSL stands for Secure Sockets Layer. It helps to establish a secure connection between a website and an internet browser. When you will cover all these three factors then buy some tokens and inspect them before making an investment.
Bitcoin Miner help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.
Points Need to be Remember before Investing in ICO
Origin of ICO You should note that the
ICO sector was born out of a notion that conventional economics is outdated and overrated. It is a well-known fact that Initial Public Offerings (IPO) are being seriously questioned time and again. Besides being too tangled in regulations, and of course, coming in too late in a business’ life cycle, they are also quite expensive to produce any significant benefit. Companies, especially startups do not see much profit in investing in Initial Public Offerings. They might come in handy when you have to repay your investors with their capital, but they do very little to fund your business idea.
Working of ICO
In the initial coin offering system, there is usually a specific goal. Each token invested has a pre-determined price which is not subject to change during the initial coin offering period. That also makes it clear that the token supply is usually static. For example, one Ether equals to one token. Every time an ether is sent, the creation of a new token begins. Of course, one can set the goal or time frame can be defined as per needs and preferences.
Risk There is no denying that the risk involved for investors is quite a bit. Many are currently making the switch from IPO to ICO. What is a reason for concern is that ICO does not share many similarities with IPO. So, many investors are not aware of the rules and regulations they need to abide by. There is much confusion about whether ICO is strictly legal or not. So, if you are business thinking about dealing with ICO, note that financial markets are subjected to heavy scrutiny by concerned authorities.
