ICO is an Initial Coin Offering or the creation of certain amount of new tokens to sell to investors in order to collect the necessary investments to develop that coin. Usually it goes to the coin market or is bought back by creators at a higher price.
To earn using ICO we have to :
- Participate in bounty, which means that you invest in the coin and you will get a profit from it each month, but only if the coin succeeds. If the coin doesn't succeed you will lose your money.
- Buy the coin in the beginning and earn later when it has a good price, and get dividends from it in the future. Some ICOs give investors bonus ( certain amount of coins if you buy certain number of them ).
How to recognize real deal from scam projects ?
- The team of the coin has to be professional in the project of the coin and they have to have good experience in that domain, without any complaints ( you can look at what they created before also).
- They have to have a clear white paper about their project, where they show what they are willing to do and more details about their coin.
- The project has to be realistic.
- There must be a need for this project in the market and a clear business model.
- There must be a big community that supports the coin.
- Good social activity & good feedback from the creators' team.
- It is desirable: a minimal bounty + a limited number of coins / tokens on the crowdsale.
- Attendance of the site, you can check it in : alexa.com
How to investigate about the new ico ?
- There are two monitoring websites : tokenmarket.net and cyber.fund
- There is this amazing forum : bitcointalk.org
Are ICO profitable ?
Usually in the step of crowdsell you can buy the coin with the lowest price plus you get some coins for free as a bonus. Some ICO offer their investors to pay them dividends related to the amount of coins from the profit that they will have in the future, which gives the passive income. But the risks are also high, no body will guarantee that the coin will not go down in the price and you will not lose your money. So be careful, learn a lot about the new currency and choose the better one to invest in.
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