In the world that we live in today, you can make money with cryptocurrencies. Already, people are benefiting from the appreciating value of crypto coins around the world. There are at least a billion adult people in the world and about half of them will get to the new financial bandwagon of using cryptocurrencies soon. If you do not get in now, the chances are high that you will when the government formally start trading in this currency. At that point, the value could be too high for the ordinary person to afford. Think of it as gold. It is a good measure of value and can be a tool for investment or protection of your money in the long term. Here is a perfect opportunity for investing in cryptocurrencies.
Get in when there is an initial coin offering (ICO)
An initial coin offering refers to the offering of shares in a company in the form of crypto coins that are also binding as the contract between the business as well as its new shareholders. The ICO could be an introduction of a new coin whose value represents a fraction of an existing coin. It could also be the launch of a crypto-based asset that is not a coin but has its value tied to the electronic cryptocurrencies currently available. Therefore, there is usually an ICO white paper serving as the investor guide. It informs the public about the intention of the cryptocurrency startup. It also advises investors about the distribution of cryptocurrency value in the startup including the initial stake held by the founders.
An ICO is a way to raise money. In simple terms, the start-up company gets into business using money raised from the public. As participants, you have your money in the startup, and you hold the value in the form of a crypto coin. When the startup is successful, the value of your crypto coin increases and you can trade it in a crypto market for an alternative type of crypto coin or traditional currency cash such as dollars. In crowdfunded ventures, you participate as a donor and do not expect much from the money you put in. In an ICO, you are free to wait for a good return on your investment.
Why should you pay attention to cryptocurrencies
They are a digital format of currency that would fulfill most of the function of a traditional currency in electronic form. The great thing about e-coins is the use of cryptography for security that dissuades criminals from counterfeiting it. In addition, the cryptocurrency has an infinity divisibility benefit meaning that you could pay someone in micro payments. It acts as cash in that it does not offer a trace of ownership. Meanwhile, it remains free of any central interference by an authority, and the value is only due to the demand and supply fluctuations.