With crypto giants like Bitcoin and Ethereum ruling the market, little is known about smaller cryptocurrencies that aren’t as popular. These small crypto projects heavily outnumber the larger currencies, although they hold a very minor share of the market capitalization.
ICOs: The Fuel To Crypto Startups
An ICO or Initial Coin Offering is an amount that is invested in a cryptocurrency project that is just getting its feet off the ground. They’re the most popular choice for small investors who are seeking to mint some money in the crypto market
Each ICO has a whitepaper that explains the project in great detail. Important bits of information like the outline of the project, the value created by it, and the investment perks are mentioned in this document.
Difference Between An ICO and IPO
An ICO is for a company in its infancy. By investing, you don’t get an ownership stake in the company, but rather have a ‘chance at winning’. You’re basically betting for the project to take off; and, if it does, you can get the benefits (this might not always be monetary).
An IPO or Initial Public Offering is having an ownership stake in the company. IPO is generally for crypto projects that are already well established and have a name in the market. It has a profitable business and has given investment returns on a consistent basis.
Although investing in an IPO seems to be more advantageous on the surface, it isn’t always the case. Even these big players can go bankrupt and you may end up losing even greater sums of money.
How To Invest In An ICO?
As ICOs are risky, you have to do thorough research before investing. You can even hit the jackpot if you strike the right chords, but your approach has to be methodical.
3 simple steps to go about it:
1) Read The Whitepaper (Check Whether All The Details Are Well Put)
2) Check Its Website and Social Media Presence (A Strong Digital Presence Is A Green Flag)
3) Seek Professional Help (If Still Confused, Get An Expert Opinion)
Can I Start My Own ICO?
Yes, it’s very easy. In fact, dozens of new ICOs are being created each day. As there are technically no legal formalities to start the project, all you need to get started is a blueprint and a development team.
To lay the foundation, your ICO idea must first be verified by a strong team of programming experts that have years of experience under their belt.
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