Understanding The Benefits Of Investing In Icos

By Alxa Robin


ICOs or Initial Coin Offerings are an initiative by companies that helps them in raising funds for their initial capital investment. It releases tokens as stocks or shares of the companies, which is given to people in exchange of the investment they make. Remember these tokens are digital currency which is definitely not the share or stocks of the company and they do not give any you authority over the company.

ICOs have been fuming in the recent times and there are a lot of people trying to explain how the system works. Well, most of the blogs provide you with a lot of technical terms, which become difficult to understand for the regular people. When you arrive at these situations, it is always better to consult with the individuals that have proper experience about investing in the ICOs.

Now tokens are one of the best ways to generate crowd funding income, moreover, it uses the blockchain technology used in Bitcoins to keep the transaction legitimate. Moreover, these tokens do not only form your investment for the companies similar to stocks, you can exchange them to use the services of the company or transact for their products. Rightfully, the introduction of new digital currencies has increased in recent times and you also need to have an idea about how the ICOs can affect the business.

Bitcoins recently made a huge jump in the financial world and its value increased from nowhere to being around 11000$. It is likely one of the most popular ICOs known today and of course the most successful token system. Bitcoin or any other cryptocurrency that you come across works on a principle of the blockchain technology. It is a simple process, where the cryptographic data or information is stored in blocks; it contains all the information about any transaction made using the Bitcoins.

The Security and Exchange commission have been looking into such investments to ensure they are safe. There are digital currencies that do not really have the need of any regulatory organisation, as there is no tangible proof for it and it protects the issuer and the investor. But there are cases when cryptocurrencies are known to get under the supervision of law.

Even tech companies have realised the value of digital currencies, they offer as an investment. The digital coins otherwise also known as cryptocurrencies are released by companies at a discounted rate just before the start of the company. The ideology behind the use of ICOs is making people aware about the company's goals and policies they are willing to follow, people that connect with the idea look to invest in their idea by investing in the ICOs released by them.

The value of the digital coins or tokens increases as the company becomes successful with time. The market value for the coins keeps increasing as more and more people look to invest in company to invest in their services and products. You do need to consider the fact that the digital currencies or ICOs do not provide you with actual ownership of the firm.

Bitcoins is decentralized and thus it has no authority above it that authorizes the transactions made with it. Thus, it eliminates the need of having a mediator to make any transaction, neither a financial organisation nor a bank.




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