what is ico

What is an ICO? Do you know ICO can make you rich overnight?

By now we know that what is bitcoin, how do it works and bitcoin mining. ICO is also an important term in cryptocurrencies like bitcoin.

But Bitcoin, the most expensive cryptocurrency, don’t use ICO. Why is it so? Let’s check it out now.

What is Cryptocurrency?

Cryptocurrency is a virtual currency that uses blockchain technology in order to ensure fast and secured payments across the globe. Currently, Bitcoin is the most valuable cryptocurrency, that was created by Satoshi Nakamoto.

what is ico in cryptocurrency

What is ICO?

ICO stands for Initial Coin Offering. It is the most important phase of a new cryptocurrency.

ICO ( Initial Coin Offering ) is the method through which fundraising is done for new cryptocurrencies.

Investors buy new cryptocurrency with a fixed price which may increase later.

It helps them to create the project and cover all the expenses needed in creating a cryptocurrency.

Investors buy the cryptocurrency at a fixed price during ICO. If the price goes upwards in the future they make money. This is the main factor that motivates investors to invest in

How do ICO works?

As we now know that ICO is used for fundraising, let’s see how does it work.

  1. A Company or team decides to launch a new cryptocurrency.
  2. They start an ICO to raise funds for the project.
  3. Investors invest their money in the ICO.
  4. Lots of money is collected and cryptocurrency is finally launched.

Benefits for Company

  1. The fund is raised that helps in creating a successful project.
  2. Gather an audience.

Benefits for Investors

  • He/she can make a huge profit if the cryptocurrency price rises after some period of time.

How ICO make you Rich overnight?

Successful ico

We now know that what is ICO and how it works. But are you curious about becoming rich overnight? Does ICO have that ability to make you rich overnight? Let’s find it out.

The simple answer is YES. ICO’s can really make you rich overnight. Let’s see the steps of becoming rich.

  • You need to invest a huge amount of money in ICO first.
  • The price of new cryptocurrency must rise.

But investing is always risky. So follow our tips to make the most of ICO.

  • Invest money that you can afford to lose. It varies from person to person.
  • Do proper research about the projects.
  • Don’t lose hope very soon. Train your mind to be patience enough.
  • Define how much profit do you want.

Most successful ICO in Past

So by now, we know that what is ICO. In the last decade after Bitcoin was launched many ICO’s were released. Some of which gave humongous returns to its investors. Let’s have a look at the top 3 ICO of all time that gave unbelievable returns on investment.

  • Ethereum

    Etherium
    It was launched in 2014 and the starting price was $0.31. The price started to increase and on 13 January 2018, it touched its all-time high $1,432.88. If you would have invested $100 at that time you would have owed $4,61,104.
  • IOTA

    IOTA token
    IOTA was launched in2015 with a base price of $0.63. It gave it an all-time high when all the other cryptocurrencies were in the bearish stage. It touched $5.69 USD on 19 December 2017. If you are not busy you can calculate how much return you would have got.
  • NEO

    NEO token
    The ICO of NEO was at the ending of 2015 and starting off 2016. It had the base price of $0.032. On 15 January 2018, it touched its an all-time high of $196.85.

There are many coins that have given a very profitable return on investment. A few more coins are listed below.

  1. Stratis
  2. EOS
  3. NXT
  4. ARK
  5. Lisk

Excited to invest in ICO and earn money. Find the whole list of upcoming ICO’s here.

Worst ICO in Past

By now I am sure that you are eager to invest in ICO. But wait let me tell you that ICO’s are not successful always. Let’s have a look at why ICO’s fail.

Why ICO fail?

  • Bad execution of the plans.
  • Intention to scam the investors.
  • Getting hacked by professionals hackers.

Now let’s have a look at the top 3 ICO’s that failed.

  1. OneCoin
  2. Enigma
  3. Droplex

Check out some other failed ICO.

Tips to tackle ICO scams

So as we discussed that ICO’s can be a scam. Some of the scammers don’t know what ICO actually is. So how we should determine that a particular ICO is a scam or not. Follow our simple tips, so that you will not fall into an ICO scam.

  1. The Team

    Team of ICO
    Have a look at the team involved in the project. Check out the individual Linkedin profiles of all. Discover if they have some experience in the Blockchain field.
  2. Roadmap

    A roadmap is a map that shows what the team will do next year or two. If it is a serious startup, they will work on a detailed roadmap at least for the next year. If the only thing you can read on their website is “You will become rich overnight” probably you should think twice.
  3. Whitepaper

    It is a document that helps your prospective customer make an informed decision in favor of your company or a specific product. But you don’t know much about laws, so don’t go deep just see if they have a whitepaper or not.
  4. Successful Peoples

    This is the best tip. Contact a person, via Linkedin, who has an experience of at-least 3-5 years in cryptocurrency and blockchain. I personally do this before investing in ICO.

Summary

  • ICO (Initial Coin Offering) is used for raising funds for a new cryptocurrency.
  • There are few ICO’s that would have made you rich.
  • ICO’s are prone to scams.
  • You should check the team, roadmap, whitepaper, and contact an experienced person before investing in ICO.

About the author

Wikicrypto45

I am Vijay Dangi, a Cryptocurrency, and Blockchain enthusiastic from India. I became interested in Cryptocurrency and Blockchain Technology in 2017 when I came across the powerful security of blockchain while browsing Youtube. I was very inspired and keen to invest in Bitcoin at the same time. But rules and regulations in India didn't allow me to do that. So I started a blog to follow my passion for Cryptocurrency and Blockchain Technology.

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