Understand the basics of ICO (offers of initial parts) and sales of tokens
The world of cryptocurrencies has experienced rapid growth in recent years, while millions of people worldwide invested in new parts and tokens. Among these investments, there is the initial offer of coins (ICO), a platform used to raise funds for cryptocurrency projects by issuing unique digital tokens by investors in exchange for their investment.
In this article, we will dive into the basics of sales of ICO and tokens, explaining what they are, how they work and the benefits and risks of investment. We will also provide an overview of the cryptocurrency and popular tokens used in ICO, as well as the guide to find and evaluate the legitimate ICO projects.
What is the initial range of parts (ICO)?
The first range of parts is a process in which a company or individual issues a new digital currency known as a token, an investor in exchange for their investments. Token represents the ownership of the project and can be used to facilitate transactions in the blockchain network. The ICO was introduced for the first time in 2014 by bitcoins and since then they have become increasingly popular among cryptocurrencies.
This process generally includes the following steps:
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- Creation of chips : The project creates a unique digital token that represents the property feature.
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ICO SALE: Investors are authorized to buy chips at an initial price that may be significantly lower than their market value.
- Distribution of tokens
: Tokens are divided among investors proportional to their investment sizes.
How does ICO work?
Here’s a step -boup -speed of the ICO process ventilation:
- Pre -sale : Potential investors can buy chips at an early stage, often at a higher price.
- Sales period : Investors can participate in the sales phase where they can teach on their favorite token.
- List of tokens : Token is listed on exchanges and wallets cryptocurrencies.
- Distribution : Tokens are distributed among investors according to their investment size.
Investments benefits in ICO
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- Early benefit of the engine : Investors who soon participate in the project success and gain a share of profit.
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One investment opportunity : Investing in ICO offers a unique chance to have a piece of cryptocurrency or a new and innovative token.
Risks associated with investments in ICO
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- Lack of transparency : Some ICO may miss clear information about the project development team, business model or financial situation.
- Security risks : Investing in digital tokens includes security risks such as hacking and phishing attacks.
Cryptomena and popular tokens
- Bitcoin (BTC) : The first and best known about cryptocurrency.
- Ethereum (ETH) : Decentralized platform to create smart contracts and decentralized applications (DAPP).
- Litecoin (LTC) : System of partner payments used by blockchain ethereum.
- MONERO (XMR)
: Private and safe cryptocurrency known for its advanced encryption techniques.
How to find and assess ICO legitimate projects
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- Read criticism : Consult a review website and forums to have an idea of the reputation of the project and the involvement of the community.
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