What is an ICO
An initial coin offering (ICO) is the early offer of a digital coin (token), by a startup company. It is much like the IPOs that classic companies do in the stock market. It allows interested investors to get in early, at a discounted price. Sometimes there are further incentives such as extra discounts or extra bonus tokens given. In any case, getting in early is good, because a good ICO will have its token rise in price substantially past the ICO period. Most ICOs only last for several days, so the window of opportunity is limited and investors need to act fast, in order to get in early. The idea that one can make millions of dollars through ICO investing is real, difficult perhaps because you will have to identify good ICOs. But it is absolutely possible! I do believe that ICOs can make millions, just like the IPOs of successful companies made early investors millions back in the early days.
What is a Token
A token offered in an ICO, is simply a share in the startup company. The company itself does this as a way to raise funds to expand its operations and to grow. As the company grows and makes more and more money, the token will increase in value. This is how investors are rewarded, and they can sell back these tokens on the open market, thereby realizing a profit. Most such tokens are accepting Bitcoin or Ether as the underlying currency. But in any case, all investors convert back the tokens into digital money (BTC or ETH), and then into local fiat currency. The process is quite straightforward and easy, but caution must be exercised the first time you make such transactions, so as to keep private information secret, for security reasons. You only need to familiarize yourself with the two main cryptocurrencies, BTC and ETH, how to convert back and forth between these two and local fiat currency, and the rest is much easier.
What is Token Exchange
HitBTC is a great and advanced exchange which offers many cryptocurrencies and tokens for trading, as well as the ability to use robots. This exchange is quite safe, it uses two step verification, and it provides very good liquidity which is a must have for fast and efficient trading. HitBTC is also easy to use, and ideal for all kinds of hedging strategies. Please note HitBTC just like all major exchanges doesn’t accept fiat currency. You have to obtain Bitcoin or other major accepted cryptocurrencies from exchanges such as Coinbase, and then move it onto Hitbtc. What makes this one unique, it’s the ease of use and faster registration procedure. This is possible because HitBTC doesn’t store clients’ coins, it’s only a place where people exchange coins.
How to Buy ICO tokens
The easiest way to get started is to create an account with Coinbase, there you can use fiat currency to buy either Bitcoin or Ether. The next step is to get a wallet, you can get a Bitcoin wallet at Exodus or an Ethereum wallet at Myetherwallet. You should avoid buying ICO tokens through an online exchange, in order to avoid complexity related to using your private information later on. I recommend just using one of the two wallets mentioned, for storing either Bitcoin or Ether cryptocurrency. And Coinbase, to actually buy cryptocurrency and to send it to either wallet. Once the wallets have cryptocurrencies in them, you can simply go to the ICO page, follow their specific instructions, where they will have some kind of address which you will need to copy and paste into your wallet to finalize your token purchase. Please note that after you pay, it will take some days for your tokens to show up, because they will be sent to you after the ICO expires, so don’t panic when the tokens are not received right away.
How to Withdraw ICO Tokens
After an ICO is over, the token goes public and becomes available on online exchanges. At that point you can simply transfer your tokens from your wallet to an online exchange, such as Binance. And offer them for sale on the exchange. Transactions at the online exchange work based on offers between buyers and sellers, some sellers offer their tokens at the highest possible price, and their orders take longer to be met by buyers. While sellers who are in a hurry, offer their tokens at a small discount, and they are able to find buyers immediately. The online exchange is linked back to your wallet, and your wallet is linked back to Coinbase or another similar exchange which converts back and forth between cryptocurrencies and fiat currencies. That’s all there is to it. But I recommend not selling tokens immediately after the ICO is over, because most growth comes in the long term usually over one or two years.
Some Currently Live ICOs:
United Traders Review
This ICO will run until December 24 2017, it is based on the Ethereum platform, you therefore need to buy its tokens using your Ether wallet. Remember that if invest in this ICO while it’s still open, before this deadline, you should buy directly from their page at United Traders
But if you buy after the ICO expires, you should buy the UTT token at any exchange! This company plans to bring innovation to cryptocurrency and classic markets trading, through massive liquidity and linking through to the NASDAQ and NYSE exchanges.
Jibrel Network Review
This ICO is currently running and will be open until 26th January 2018. This one more exciting ICO in the fintech space. It wants to innovate the financial markets by tokenizing classic markets, and offering them through token fractional value, and blockchain technology, in order to make traditional markets more liquid and more affordable. You can buy their token now at their website, using either Ether or Bitcoin Jibrel Network
After the ICO expires, I recommend waiting for a while for price to drop, you can always buy it later on the major crypto exchanges.
INS World Review
INS World specializes in the grocery industry and it wants to bring supermarket products directly to consumers, thereby cutting out the middleman and making the market more efficient and saving consumers a lot of money. I think this is a good ICO and a good idea too. The ICO will finish on Christmas day 2017 (25th December), and has already gotten a lot of attention. You can buy their Ethereum based token at their site today: INS World
Simply by using your Ether wallet. But if you happen to miss out on all the bonus offers, or miss the ICO altogether, I recommend waiting after the ICO expires, for few more days or weeks, and wait until token price comes back down, then it will be a new opportunity to buy again.
The Opportunity of Live ICOs and Expired ICOs
You may be tempted to think that after an ICO expired, it’s too late to make any money… But luckily for us, that is not true. In fact, in most cases, I’d say on 90% of blockchain startups, the opportunity is not fully developed and offered, because the technology is not fully utilized. ICOs such as United Traders, or Cardano, or KickICO and many more, are and will be big opportunities even after their ICOs expire.
What really happens is that ICO focused investors and traders rush to buy the tokens at ICO price, the price goes up somewhat, but then they all sell out at expiry time, to make a quick profit. And the token price begins to drop again. But blockchain technology is not moving as fast, is moving much slower, because it’s massive, and anything that is too big tends to move slowly.
I can assure you that you can buy United Traders tokens even after their ICO, after the fast traders pull out, at a good price. And this company is so large that is not fully developed and deployed yet, we still haven’t seen its full potential. So you can still buy tokens from good ICOs, after the expiry date, and still make a ton of money as their technological solutions start to deploy. That’s when more and more investors will come and buy the tokens at the online exchanges. Just remember that good investments in blockchain technology are all about:
- Problem solving (solves a real problem)
- Proprietary ideas (the idea is very difficult for others to copy)
- Compatibility with legacy technology (the technology is compatible with older infrastructure)
All good startups offer new solutions for various problems. These solutions are not fully deployed yet, not even by 10%, so their value is not yet fully appreciated. When the solutions are out, investors will rush back and will be buying these tokens again and again. That usually takes months to years, but that’s where investors will make millions. The same happened on Wall Street and major company IPOs, you could have made a small quick profit at the IPO, but the millions were made by investors who invested and held the stock for a long time. The fastest actual time you can make millions is usually 3 to 6 months. That’s a realistic period where the blockchain technology being offered by all these startups, can really be fully deployed.
You can be a wise blockchain investor by tracking the hidden benefits of various ICOs, and invest during the period the ICO runs, or a while later, after it expires. There’s nothing worse than selling the tokens of a good ICO, right after expiry, making a fats but small profit, only to see that token rising by 10,000 times over the next two years. Remember to think wisely and not to always follow the crowd.