An ICO investment refers to the act of investing money (or cryptocurrencies) in a new crypto project with the hope that it would produce good returns, even if not in the line of top cryptocurrencies like Bitcoin and ETH. Bitcoin has been the most successful cryptocurrency till the date, with an all-time high rate of $19,000 per BTC in December 2017.
The success of Bitcoin and other following currencies made investors hopeful about this market and motivated to invest in cryptocoins. If you are also planning to invest in an ICO, this article can tell you some ways to make good money out of your ICO investments.
An ICO (Initial Coin Offering) is a way for new crypto startups to raise funds quickly to develop the project and the coin. It is also a way for investors to get good profits by investing in a promising ICO venture.
Do your Research
You must have heard this a lot of times, but it still holds true for any kind of investment. Make sure that you do your research on the ICO project, the company and people behind the project, the project concept, its market analysis and value, commercial applications and everything else. Search information about the particular ICO on popular cryptocurrency forums and ask questions around to know as much as you can about it. Read the project whitepaper to know about the team and visit the social profiles of each of the team members to check out their knowledge, skills and experience.
Invest in a Good Coin
I know it is easier said than done, but it is crucial for the success of your investments that you choose a good and promising ICO to invest your money in. How to do that? Well, for starters, you can do a lot of research about the company and the project (already covered in the first point). Then, you can read about cryptocurrency and how it works. How does the currency grow in value and what are the risks involved? Are there any real applications of the coin in the commercial market? Check out these things to make sure that your investments can actually return something.
Don’t miss bonus tokens
One of the best things about increasing ICO competition is that you can enjoy good bonus on your investments. Most ICO companies offer bonus coins to their early investors as a certain percentage of their original investment. Make sure that you secure these bonus tokens as they can produce great returns for free. The earlier you get involved in the ICO, the more bonus tokens you can collect. So, try to participate at the pre-ICO stage itself.
Hold, Sell, Repeat
The value of a cryptocurrency grows only after it hits the market, however, that depends a lot on how realistic and valuable the token concept is. Once the coin hits the market, it will start gaining value depending on the demand. Then, you can start trading your coins for other established cryptocurrencies like ETH or BTC or cash. This is why it is important that you invest in a token that is enabled for trading on crypto exchanges. However, you should not sell all of your tokens immediately. A good idea is to hold at least 50% of your tokens for a few months before you sell them again.
Know the Risks
Instead of getting too technical (or start making scientific calculations) about your investments, you should look for simple things like the product idea, whitepaper, the team, company and the market, which will probably tell you everything you should know before investing in that coin. The aim is to figure out the risks involved with the investment. If you think that the risk estimate is too high, you should probably avoid that investment. It is important to understand and analyse the risks involved, but do not overthink. Keep it simple.
Follow these tips if you are really hoping to make some good profits from your ICO investments. Be careful where you invest. Keep your eyes open for new, innovative cryptocurrencies like MEP Token (Medipedia.io) and invest wisely.
