The world is going digital nowadays. Starting from the ways we communicate between ourselves and do our work to buying and selling stuff, everything operates online. Even the currencies aren’t what they once used to be.
Thanks to the appearance of the blockchain technology and cryptocurrencies, businesses and individuals can make larger investments and hope that the digital currency will reach higher levels and enable them a satisfactory return on investment. Connected to this, ICO projects enter the picture. They are a new trend that’s slowly spreading in the world.
So, if you want to stay on top of everyone else and discover the details related to this phenomenon, keep reading as we unravel the details.
What’s an ICO Project?
When a company has a great idea or a solution to a problem it needs funds to make it a reality. So, according to the traditional way, an IPO happens or an initial public offering which is a very regular thing in the world of investment. ICO projects are very similar, yet there are some small but crucial differences.
The ICO or an initial coin offering actually falls under crowdfunding. And during this project, the company creates unique tokens which can be bought by regular people (investors) with cryptocurrencies. After the sale of tokens is complete, after a while, they can start to be tradeable.
That’s how the company or the team of people that have an idea can get some money that will go into the further development of the product/service.
How to Find ICO Projects?
This whole topic gained momentum in 2017 and since then it’s only evolving and getting more attention. Because we’re talking about investing and money, individuals should be very careful where they put their cash.
That’s why it’s very important to conduct thorough research before you do anything. Search the internet, follow the news, calculate, become a member of online platforms about this matter… It’s all up to you – just make sure that you’re doing the right thing. A pro tip – you can also check out ICO whitepapers which may yield some very useful information.
What’s more, keep an eye on verified platforms and ICO lists. For instance, ICO Toplist is a place where people can find new initial coin offerings.
Another thing to have on your mind is the project’s ability to be turned into action. By that, we mean that you should be certain that the project can exist in the real world and that it’s applicable. Of course, you can’t possibly be a hundred percent sure, but still, the project should have great chances of success.
How to Make an Investment in ICOs
In most cases, the ICO projects use the ERC20 protocol on various platforms that operate as networks for doing the transactions. To make it easier for the interested contributors, the projects have a dashboard where people can submit questions and receive relevant details as answers.
What’s more, the contributors are required to provide KYC (Know Your Customer) documentation so that their identity can be confirmed. They should also have a wallet address and tokens recognized by the wanted ICO.
Only after the team verifies the contribution, your wallet is filled with the tokens from your chosen project.