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All you need to know about investment through ICO

Have you heard people constantly talking about investments in cryptocurrency like Bitcoins these days? Or may be investment through ICO? Does it leave you baffled? Do not worry - we are here to help you out!.

Basava Patil

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Initial Coin Offering (ICO) is like a modern substitute to the conventional Initial Public Offering (IPO) in the current financial world. ICOs are issued in the form of cryptocurrency. ICO is usually meant to be issued by the beginners who are trying to establish a start-up or business. It is usually used when the entrepreneur is willing to take up more risks. ICO is also often issued for a single project, rather than as a fixed capital in a company.

 

How to Buy an ICO?

Before finalising your decision to invest in CIO, consider these informative facts about CIO:

  1. Try and understand the exact concept of cryptocurrency. Rather than just reading over the internet, talk to the people you know who have invested in ICO.
  2. Often, the investors are required to be an existing participant in ICO investment. This means that the investor should have a prior experience of investing in cryptocurrency. They should have some amount of cryptocurrency in their wallet. This makes it easier for them to purchase and sell their ICO. So, as a beginner, make sure that you have the capabilities and patience, enough to enter into this new world of investment.
  3. The key to investing in the best firm is to be updated about the happenings in the Financial Market. Keep reading and knowing which company is issuing ICO, and when you find the best opportunity, invest in it.
  4. Look out for different websites where investors often gather to talk about the new opportunities for ICO. You can learn a lot from other investors and can also look out for good opportunities for yourself.
Read also: Female Perspective in Blockchain and Cryptocurrencies

Benefits of Buying an ICO?

Well, the world is not going crazy over ICO for nothing. Here, find it out for yourself:

  • Global Market: It allows an investor to invest in any company in the global market. There are no restrictions regarding the company selection.
  • Procedure: The procedure for acquiring ICO is very simple and quick. There are no legal formalities involved which makes it a very smooth process. It also saves a lot of time for the company as well as for the investors.
  • Trading: Trading of ICO is also very easy, and it does not consume a lot of time like an IPO. An investor can buy an ICO at any time and can sell it off at any time as well.
  • Short-Term Investment: Investing in ICO is an ideal investment option for people looking for short-term investments.
  • ROI: ICO offers quick return on investment. The profit offered is also much higher. In the IPO, an investor had to wait for the company to give out dividends on the shares. But with ICO, investors gain profits immediately. So, investors wanting faster cashflow can choose this option.

 

Conclusion

Investing in ICO is the new black. It is getting popular and has its own perks. However, it is not risk-free. Investment through cryptocurrency does not give you any sense of ownership in the company, like investing in an IPO does.Also, it is not regulated by any legal body, increasing the security concerns for you. So, nothing comes easy. Understand all the associated risks and do not get carried away by attractive investment options which may turn out to be just baits. Decide wisely and responsibly. Happy Investment!