Reasons To Invest Your Money in ICOs

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Let’s face it, the way to make your money work for you is by investing in ICOs. What are ICOs? An Initial Coin Offering (ICO) is a way for new projects to raise funds by offering their own cryptocurrency to early backers of the project. It is similar to an IPO (Initial Public Offering), but with a crypto twist.

There are some key reasons as to why you should be investing your money in ICOs:

Diversification of Portfolio

One of the best ways to grow your savings is to invest them in different assets and/or currencies, and not just leaving them under the mattress or in the bank. ICOs give you the ability to use cryptocurrencies for exactly that, diversifying your portfolio with different currencies, while also giving you a lot of other benefits. For example, consider the fact that Bitcoin has been very stable over time, but it’s still very volatile.

By investing in ICOs, not only are you investing in cryptocurrencies, but you’re also investing in startups. This means that you will be able to reinvest some of the money received from your ICO investment into various cryptocurrencies after they are listed on an exchange, which would diversify your portfolio even further.

High Returns on Investment (ROI)

There are thousands of ICOs out there that are offering revolutionary technologies, just like the ones that Uber and Airbnb brought to our everyday life. For example, take a look at InChain, an ICO that is currently being held by European blockchain experts.

InChain offers a very profitable business model, as it provides insurance services for those who choose to store their cryptocurrencies in professional wallets and not on exchanges. The reason for doing so is because many cryptocurrency investors and traders suffer from ignorance and neglect, leaving their wallets unencrypted and susceptible to hacking.

However, if you store your cryptocurrencies in a professional wallet that requires multiple authentication, hackers will find it much more difficult to gain access to your funds. InChain aims at reimbursing investors who have lost their cryptocurrencies after having stored them in an exchange or personal wallet. The goal is to reimburse them with the company’s tokens, which will increase significantly in value over time, due to the limited number of InChain coins that will ever be created.

Community Integration and Trust

There are a lot of people who are brand new to the crypto world, and there are others that have invested in ICOs before. It’s important for these people to invest in an ICO that has already been vetted by members of the community; otherwise, they will surely lose their trust.

When you consider investing in an ICO, one of the first things you should do is to take a look at the people involved in the project. Are they reputable and experienced? What kind of experience do they have? Can you find any reviews or articles about them online, written by trusted sources related to the industry (journalists, bloggers)? If you’re not sure what you should be looking for, consider hiring an ICO consultant to help you with your research.

Also Read: Reasons to Invest Your Money in Bitcoin

New Technologies and Platforms

A lot of ICOs offer new technologies and platforms as part of their business model, as well as a token that is used within the platform or at least can be traded for other cryptocurrencies around the world. This makes them very easy to invest in, without having to worry about anything else.

The main objective of every ICO is to raise the necessary funds for their project; therefore, they offer a token that can be traded on various cryptocurrency exchanges around the world, once it’s listed. By doing this, you will be able to get your investment back (and even make a profit) by selling and trading the tokens that you’ve purchased during the ICO.

Early Advantage and Access

Another great benefit of investing in an ICO is having early access to a new token before it’s listed on different exchanges, allowing you to trade it freely and make huge profits without any restrictions. The only thing that comes in between you and these huge profits is the ICO’s hard cap, which is a maximum amount of money they can raise during their token sale.

So what does this mean for you? Well – the sooner you find an upcoming ICO and invest in it, the higher your chances of getting huge returns on your investment are going to be. However, just like any other stock investment, timing is key. You should never invest in an ICO before it’s listed on CoinMarketCap or even better – wait until it has already been listed and started trading.

For example, if you’d invested just 1 BTC into IOTA at the beginning of November last year, that would have given you more than 20,000 EUR at the time this article was being written!

Also Read: An Ultimate Guide To Cryptocurrency

Only a Few Members of an Emerging Market

The best part about investing in ICOs is that there are only a few members within this emerging market. Whenever you have less competition, it becomes easier for you to be successful and get ahead of the crowd. In addition to this, it can be easier to negotiate terms with companies launching ICOs, as the number of interested investors is very low at this point.

However, keep in mind that these perks don’t come around often – you should make sure to find a hidden gem within the list of all upcoming ICOs. In order to do so successfully, you can use different tools that are available online, such as ICO Alert or Smith & Crown.

Articles about upcoming ICOs can also help you to get a better understanding of what’s going on within the industry and to learn more about each company launching an ICO. It’s always a good idea to read up on the latest news related to cryptocurrencies in general, so consider following the top cryptocurrency news websites and blogs, such as CoinDesk, CCN, CoinTelegraph or NewsBTC.

Access to Exclusive ICOs

Finally, even though not all upcoming ICOs are exclusive for their investors, you can still benefit from that sometimes. In fact, there are different kinds of restrictions, such as a high minimum investment, time limits and geographical restrictions – for instance, Chinese residents can’t participate in many ICOs because of the recent ban.

As a result, you will be able to select only a few exclusive ICOs from all those that are being launched each month. In addition to this, having exclusive access to an ICO can be extremely valuable, as it will help you to invest at the earliest stages and get a bigger share of the tokens with less competition.

What’s even more interesting is that many companies launching an ICO also offer benefits in the future to their early investors, such as free coins if they decide to buy some later on or discounts if their tokens are bought through the cryptocurrency exchanges.

Conclusion

If you’re going to invest in an ICO, make sure that it’s a great opportunity for you and that your investment will be worth it – there are many ICO scams out there that can cost you a lot of money! If you follow this guide, though, we’re certain that you’ll find the perfect investment for yourself.