ICOs are risky investment but should you take that risk?For those who like to hear straight answers without spending much time on reading. My opinion is that you should definitely invest in ICOs but cautiously.
Here are few points to support why I strongly believe that one should invest in ICOs
ICOs give a chance to a common man to invest in early stages of the start-ups they like. This opportunity was earlier with rich people only. You can also invest in start-ups using crowd funding websites like:
https://angelinvestmentnetwork.co.ukhttps://www.seedrs.comIn fact, By that route you would get equity in the company as well but if you study the investment deck of those companies you would see that most of them only have an idea or haven't done sufficient POCs of their product but are claiming that their valuation is in Millions and if you invest $100 in them you would let 0.000000000000034% equity. I mean, This is hell of a lot of equity :-) but I personally believe that most of the early stage start-up funding campaigns are nothing but a hype. So, The risk is extremely high on any type of start-up investment. It’s not only for us, It’s for VCs and experienced Angel Investors as well.
https://cdn-images-1.medium.com/max/800/1*7oMAjwfexwId_owp5hni6w.jpegThen why I prefer ICO over Crowdfunding?What I believe is that share/stock market have high percentage of people who understand market dynamics, charts, negative news & positive news. Lot of these people in the market act like a traders or a punters who want to gain when market goes down and again gain while it comes back up . The market factors effecting cryptocurrency markets are far more speculative then the ones effecting stock exchanges which would mean that their would be more and drastic upswings and downswings in the charts of cryptocurrencies as compare to the stock of listed company as most of the companies which get listed are very big and stable which also reduces the risk in their investment.
In a nutshell, the punters and speculating traders going ahead would prefer trading in crypto market rather than share market which will make this market more volatile with lot bigger upswings and downswings which would enhance the gain or risk further for the people investing in crypto space.
What you get in return of participating in this enhanced risk is the opportunity for huge/unprecedented/unimaginable returns.
So, Now that I have made it clear that after the approach to buy a lottery ticket (Which buy the way has far less probability of clicking big) to get unimaginable money, investing money in ICOs is commons man’s other opportunity to get unprecedented returns from their investment. I would say if you are looking for extremely high returns for your money you must invest in ICOs
How much should you invest in ICOs?Very little, The amount you are prepared to loose. Remember the massive upswings and downswings to your coin would be created by market demand and not entirely by the success of the actual product. Success of the product which has gone through it’s ICO would give you really good returns in longer term but will never be able to realistically drive +10,000x returns in few months which lot of ICOs have delivered in past. So, you should invest very little in the ICOs.
To invest in one of the very legitimate ICOs visit www.talenthon.ioStatement: I am not a financial adviser, I own cryptocurrencies & I own stocks as well. Please consult your financial adviser before making any investment.