Beginner investors get enticed to start investing for a number of different reasons. But most often, learning how to invest gets interesting when hot new types of investments hit the market for the first time. This is what happened when tech IPOs starting popping up all over the place. That is why many beginner investors today want to start investing in ICOs. ICOs, or Initial Coin Offerings, allow consumers to invest in cryptocurrency. Obviously, cryptocurrency investments have produced quite a number of headlines recently. If you are interested in learning how to invest in ICOs to join the cryptocurrency investing bandwagon, keep reading. Below, the top 5 best ICO investing tips and tricks will be detailed. This way, you can become a successful ICO investor that earns high returns on investments.
Measure With USD
When investing in ICOs, you need to remember to measure cryptocurrency value against USD and BTC. Many cryptocurrency investors make the mistake of only comparing performance against Bitcoin, or BTC. This is the wrong move. You want to know that your value in cryptocurrency is increasing. The only way to do that is to compare the growth to that of traditional capital assets. You should also compare cryptocurrency investment performance against Bitcoin performance. Bitcoin is the leading cryptocurrency. Follow this advice to measure performance against USD and BTC, and you are bound to become successful in ICO investing.
No More, No Less
One of the most important ICO investing rules is to invest the right amount. If you are looking for ways to invest $10, ICO investments are not the right solution. Typically, cryptocurrency investors should look to invest only 10-20% of total income into ICOs. That is because this is typically the amount left over in consumers’ paychecks after paying their bills. So, you want to be sure that you do not invest money in Bitcoin that you do not have. But, you should also be sure that you are investing enough to make your investments worth your time. The best way to do this is to follow the rule of ICO investing, and invest no more than 20% of your salary.
The more you know about cryptocurrency investing and ICO investing, the better you will do as a cryptocurrency investor. An ICO investor should know that there are multiple types of ICOs, because there are multiple types of tokens. This is important to remember when choosing your investments. Know about the different types of tokens, like utility tokens, currency tokens, asset tokens, equity tokens and rewards tokens. Be sure to research each individual option. The more you know about Initial Coin Offerings and cryptocurrency in general, the better your cryptocurrency holdings will perform for you. You will be an informed investor that makes wise investment decisions regarding the best cryptocurrency investments using this ICO investing tip.
Before choosing cryptocurrency investments, read the whitepapers first. Cryptocurrency firms create whitepapers when they want to raise money using an ICO. The whitepaper will tell you all about the project they are trying to fund. It will include details about how much money the cryptocurrency firm requires to complete the project. It also talks about developers’ coin ownership amounts and ICO campaign length. These cryptocurrency whitepapers will give you an advantage as an ICO investor. They let you see the investment risks and rewards from the business’ own risk assessment. That helps you make more informed decisions with legal insider information. Read every single cryptocurrency whitepaper you can get your hands on if you want to start investing in cryptocurrency successfully.
Find Out About Presales
If you want to start investing in ICOs successfully, look for details about presales on ICO investments you are considering. Private ICO presales are frequently made available to a select group of people. These presales can turn a great investment into an awful investment if they do not force investors to adhere to vesting time requirements. Because then, pre-sale investors can dump tokens once the ICO goes public. Clearly, that would be disastrous for other ICO investors that bought once the ICO hit the market. If you want to become a smart cryptocurrency investor, make sure to find out about cryptocurrency presales before you start investing. This is sure to help produce successful results from your ICO investments.
ICO investing has made many first time investors get interested in learning the market. But, you need to be careful with cryptocurrency investing, especially if you do not attend a day trading academy first. If you want to start investing in cryptocurrencies, use the ICO investing strategies detailed above. These ICO investing tips and tricks will help you make smart cryptocurrency investments. That way, you can have the best shot at earning returns on your ICO investments. These cryptocurrency investing strategies are used by expert cryptocurrency investors. They are sure to produce desirable results for you too.