How To Find The Best Ico To Invest In
Although highly risky, investing into a project early on can yield very fruitful results. As with any smart investment, you will need to do the proper research to protect your capital. The initial coin offering market is unregulated, therefore, there is little recourse for you if you get scammed. That being said, ICOs are becoming more popular every day. There have already been over 3000 ICOs to date according to a study conducted by Reuters.
Choosing a winning ICO can be a difficult task. Even a psychic cant guarantee that you will come out ahead. While no one knows the crypto future, there are still some steps you can take to find the best ICO to invest in.
What To Search For Before Investing In An Ico
To ensure that you wont lose your hard-gained capital to the benefit of a greedy person or a scammer, weve put together a checklist with things to look for before you even decide to join an ICO.
– 1) An Accessible, Credible, and Well-Informed Development Team
First of all, search for information about the projects developers. If theres not no LinkedIn information about the team, that should ring the red bell in your head that something is stinky.
Secondly, look at the teams experience, what their previous occupations were, and what successful projects have they been part of in the past. If they do, then, the project theyve set before themselves is more likely to be achieved.
And third of all, check out their LinkedIn links and contact them directly, asking whatever questions you might come up with.
– 2) Well-Established Crypto Advisors
Its not uncommon for ICOs to not have an Advisory Board. While its not a written rule that they must have Advisors in place, an ICO with prominent crypto specialists on board builds more trust in the investor.
– 3) A Detailed, Realistic, and Well-Written White Paper
This is the single most important document of the ICO. The White Paper explains everything in detail and it could be referred to as the companys pitch to investors. It is usually accompanied by selected company data, infographics, mission and vision, and a road map .
– 4) An Active Announce Thread on Bitcointalk.org
– 5) A Clear, Realistic, and Well-Developed Roadmap
If You Responded To An Investment Offer Like This You Could Have Been Scammed Howeycoins Are Completely Fake
Welcome to Investor.gov, the Securities and Exchange Commissions site designed for individual investors. Weve recently seen fraudsters pretending to be involved in blockchain technology, initial coin offerings, and crypto-currencies when really they are simply operating scams designed to take investors hard-earned money. We created the bogus HoweyCoins.com site as an educational tool to alert investors to possible fraud involving digital assets like crypto-currencies and coin offerings.
Fortunately, frauds like these often have a number of red flags that can help you tell if the so-called investment opportunity is really a scam. Our bogus site is a mash-up of a number of different things we’ve seen any particular fraud may be harder to spot than the red flags here. Here are some of the signs of fraud that are on the HoweyCoins site we hope reviewing these may help you recognize a real fraud in the future!
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What Makes Cryptocurrencies Different From Fiat Money
Fiat money money like the American or Canadian dollar is issued by the government, meaning theres a central authority that controls its value, interest rates, and supply . Many view this degree of government involvement in the mechanics of the free market as manipulation and as an archaic attempt to manage a vast and complex economic system. A noble intention at best, a catalyst of hyperinflation that makes wealth building very difficult for the average person, at worst.
Cryptocurrencies, on the other hand, are decentralized all transactions are done peer-to-peer or through smart contracts and theres no authority overseeing them. Many people consider this a massive advantage over traditional money, because it gives them full control of their assets.
How Do You Invest In An Ico
There are two ways firstly as many alt-coin ICOs are crowdfunded, you can invest just before the offering, as the coin is developed. This is called the Pre-ICO period. Basically, this is like being a business angel or VC. Secondly you can invest at a later stage as the coin goes onto the market. Obviously, most investors are hoping that the coin will rapidly increase in value and they can make significant gains.
This is how investors can take advantage of our service. We offer the ability for ICOs to list new tokens on our platform. As an investor you can invest in any of these new tokens as soon as they are listed. The earlier you invest the more likely you are to get the best purchase terms.
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The Best Icos Will Have Solid Development Teams
Always research the development team behind any ICO in question. These are the people who are going to be receiving your investment. Never invest in an ICO when their development team lacks the experience to accomplish the tasks required. Start with the teams social media accounts. Social Media research can reveal a lot about a projects team.
Do the team members interact with other professionals in the same field? This can help you determine an individuals influence in the community. If the person in question is having technical discussions with other well-known crypto developers, this is a good sign that they are experienced in the space. Be sure to look for any red flags, such as newly created social media accounts or varying identities between platforms.
Team Section Via Dream.io
Never invest in an ICO when the development team is not public. This sounds like a no-brainer, but every month millions of dollars are lost because investors failed to investigate the development team behind the project. Ideally, you should be able to speak directly to the projects development team via their listed contact information. You can ask for their credentials and other information that proves they are technically capable of handling the project.
How Do I Get Started
Here are some factors to look out for when investing in an ICO to potentially make lots of money.
Promising ICOs
You should look for projects that have good long-term fundamentals. Assessing a project based on its vision, the problems it is trying to solve and the quality of its developing team is vital in understanding whether the project has great prospects. Good projects will tend to achieve their objectives and deliverables, which will, in turn, be reflected in an appreciation of their tokens price over the long-term.
Bonus Offerings
Most ICOs have a bonus system to reward early investors. The bonuses can range from between 10% 100% depending on certain ICOs, where early investors will receive additional tokens for their contributions. Some ICOs even have a presale stage that allows the public to invest before the ICO dates. Usually, investments in the pre-ICO stage is higher than on the actual ICO period.
Low Hardcap Coins
Hardcap refers to the maximum amount raised by the project, usually in denominated in USD or ETH value. So, if a project wants to raise a maximum of USD $30 million, that would be the projects hardcap. A good project with a low hardcap amount often tends to be sold out fast, often in minutes!
Heres a guide that will help you in your journey to investing in any ICO: Beginner’s Guide to ICO Investing: How to Participate in ICOs.
Here’s a guide to fundamental analysis for cryptocurrencies that can help you in your due diligence process.
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Good Reasons To Invest In Cryptocurrency
What Does An Ico Mean
An Initial Coin Offering or Initial Token Offering is a type of project or startup financing that is conducted with the help of issuing coins . Tokens are purchased by participants in return for an eligible payment instrument or cryptocurrencies such as Bitcoin or Ethereum. The value of those tokens depends on the project viability and can grow far higher later. In terms of technical framework, ICOs are associated with Blockchain and smart contracts.
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Why Are Icos Not Supervised By The Afm
The scope of the AFMs supervision is established in the Financial Supervision Act . The AFM assesses whether an ICO is subject to its supervision on a case by case basis, based on the definitions in the Wft. Most ICOs are structured in such a way so that they are not covered by the Wft and therefore are not subject to supervision by the AFM. Only under certain circumstances, depending on the structuring of the tokens, there can be activities that fall under the scope of the Wft. This may be the case if the tokens represent a share in the project or give entitlement to a part of the future returns. Consumers suspecting that an ICO is subject to supervision by the AFM can notify this to the AFM Financial Markets Hotline.
Ido Crypto Meaning & How To Invest In Initial Dex Offerings
Its time to better understand and navigate the IDO crypto world. Think of an IDO as the decentralized exchange version of an IPO. Getting early for a good project has always paid and with crypto IDOs, it has never been easier. By learning about the IDO space and how it works, you can make more informed investments in early-stage projects.
Lets begin with covering the basics before discussing how you can get involved in the IDO crypto market.
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How Do I Determine Which Icos Are Good
Just make sure to do your homework. Because ICOs are barely regulated, you need to be way more careful than you’d be when investing in an IPO. Read the white paper, research the team members, and make sure they have a history in cryptocurrency.
You can also use trusted websites like Coinschedule.com, which only chooses ICOs that they have reviewed and consider to be legit and exciting. While you shouldn’t fully trust any website offering a listing, they can be quite useful.
Some Improvements We Should Focus On
An improvement that we should focus on right now is scalability. As for now, only decentralized finance or DeFi projects have managed to raise money through IDOs. However, this doesnt mean that other projects within the crypto space cant use this method of crowdfunding. But of course, for these projects to take off, they will need some hype from existing DeFi users. And drive them to invest in a token.
But why is that the case? Well, simply because using DeFi platforms is not that easy and there is a learning curve. This learning curve may act as a barrier to a large portion of crypto traders. Another improvement that we should consider is boosting education and awareness of DeFi as this industry develops.
One other factor we need to consider is that centralized exchanges like Binance or Coinbase still have a lot of control over the market. And investors arent even asking when the next IDO listing is going to happen. As of the moment, they are more interested in when Coinbase is going to list a specific new coin. Hopefully, all this will change as awareness grows around decentralized exchange and DeFi.
In other words, we need more awareness for the sake of the future of IDOs. And DeFi users are only a small portion of the overall crypto market that is also a niche field but keep exponentially growing in size. But there is a bright side to this. Based on the report from CoinMarketCap ICO on August 2021, the past few months of projects fundraising are mostly IDOs.
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Heres How You Can Invest In An Ico:
- Selecting ICOs
To invest in an ICO, you must scroll through our website to find potentially promising projects that require funding. Once you find a list of projects where you can see your investment, you need to go to their website to purchase its tokens.
- Purchase of cryptocurrency
Given that the ICO is held in cryptocurrencies, and not in Fiat currencies, it is necessary to exchange money for cryptocurrency .
- Transfer cryptocurrency to the project and receive confirmation of participation
- Getting project coins on a crypto wallet
- Withdrawal of coins to the crypto exchange
When the prices that suit the investor are reached, the sale and fixing of the financial result are performed
What Is Blockchaintechnology
Blockchain technology is based on the principle of openness and a decentralised system. A blockchain consists of a network of computers that are not exclusively owned by a single participant. Using algorithms, all the participants in the network decide which information is valid and which is not. This information is included in blocks that together form a chain . All the participants in the network thus possess the same information in the blockchain at any one time, in the form of a single shared ledger. This makes it impossible for individual participants to manipulate information. There are many variants of a blockchain, of which Bitcoin is the best known application. Many blockchains are open in nature. Anyone with access to the Internet can use such a blockchain, for example to execute transactions. The participants in the network then verify these transactions and include the valid transactions in the blockchain.
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A Brief History Of Icos
If we look at the history of ICOs, they can be traced back to 2013, when Mastercoin raised around 5,000 BTC in its coin offering. At that time, it was one of the most successful crowdfunding campaigns ever.
Probably the most famous one is Ethereum’s ICO, which took place in 2014. The new blockchain, which can be programmed beyond what Bitcoin had offered at the time, gained much support. It raised $18.4 million, which helped it skyrocket in popularity to become the second-largest cryptocurrency that reshaped blockchain technology.
However, it wasn’t until 2017 that ICOs started becoming a really popular fundraising opportunity and saw a slew of successful initial coin offerings. In 2017, the crypto world saw 342 new tokens, whose initial coin offerings raised nearly $5.4 billion throughout the year.
Qualification Of Unit Of Participation In Collective Investment Scheme
An ICO is subject to financial supervision if it concerns the management and offering of units in a collective investment scheme. This is the case if an issuer of an ICO raises capital from investors in order to invest this capital in accordance with a certain investment policy in the interests of those investors. The funds raised have to be used for the purpose of collective investment so that the participants will share in the proceeds of the investment. An increase in net asset value also qualifies as the proceeds of an investment. In this connection, among other things the AFM applies the guidelines published by ESMA on key concepts of the Alternative Investment Fund Managers Directive.
Under Section 2:65 Wft, a licence from the AFM is required for the offering of units in a collective investment scheme unless the issuer is eligible for the registration regime. Further information is available here on the AFM website.
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How To Store Cryptocurrencies
Alright, so you bought your cryptocurrencies, where exactly should you store them?
Centralized exchanges are much more reliable, secure, and insured today than they were a few short years ago. Most retail investors are more than comfortable trusting a centralized crypto currency exchange like Binance or Coinbase with custody of their holdings. And since mass adoption of crypto is still just beginning, this is the easiest and most straight forward option
If you are more risk averse, and less trusting of centralized methods of custody, there are a variety of crypto wallet options available with an array of features and trade offs. If you want to learn even more about what is available see our in depth Cryptocurrency Wallet Guide: A Step-By-Step Tutorial.
Is An Ico Illegal
While ICOs arent illegal all around the world, there are at least ten countries where they are. The most obvious of these is China, which first banned ICOs in September 2017 and made crypto activity in the country completely illegal as of September 2021. Algeria, Bangladesh, and Bolivia have also banned cryptocurrencies as a whole.
Countries where ICOs are illegal include Vietnam, Kyrgyzstan, Macedonia, Morocco, and Pakistan.
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Initial Coin Offerings And Cryptocurrencies
Digital assets like cryptocurrencies and ICOs continue to evolve and spark interest from Main Street investors. With billions of dollars raised in ICO financings and over a thousand different cryptocurrencies currently available, these rapidly changing markets are tempting for investors. It is also difficult for most individual investors to make sense of these complex investment products and to determine the risk levels associated with them.
Move Your Btc Or Ether In A Secure Wallet
We dont recommend keeping your coins in a wallet that is provided by the cryptocurrency exchange. Instead, transfer your coins to a compatible and secure wallet, such as Ethereum wallets, so your funds are more secure. Alternatively, you can transfer your coins to a hardware wallet, which is considered to be the safest way to store your cryptocurrency.
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