Investment in cryptocurrency is one of the most profitable investments currently. The Cryptocurrency market is over $ 500 billion, and investors everywhere are looking for ways to access a slice of the new El Dorado of the world. Investing in a new cryptocurrency can have a higher return than investing in an already existing crypto coin, such as bitcoin or Ethereum. Here you can find additional information.
How can you invest in cryptomonads?
Investing in cryptocurrency can be done in two ways: Buying a cryptocurrency that has already been launched or investing in launching a new cryptocurrency Initial Coin Offering (ICO).
In the first case, the investment is made through exchanges. In order to access such an exchange, the user must create a wallet (virtual wallet) that can be accessed by the user through a unique code called the private key.
Under the new regulations, called AML (Anti Money Laundering), platforms should have customer data – KYC (Know Your Customer).
Some exchange platforms, when creating a wallet, ask for a picture of the identity card, and make a “selfie” photo where the user must hold the bank card in their hand, leaving the last 4 digits on the card to see prove it is his. Not all platforms comply with these regulations. Once this identification process is complete, users can start buying coins. The second investment variant is the one in a digital coin to be launched – a procedure called ICO.
See this website: https://www.investopedia.com/terms/c/cryptocurrency.asp
What is an ICO?
Initial Coin Offering (ICO) is the correspondence of IPOs, i.e. stock listings, and is used to raise capital for launching a new digital coin. More than 3.4 billion dollars were invested in 211 successfully launched ICOs in 2017. ICO is a three-step process where the company gives the opportunity to potential investors to buy cryptocurrency to achieve two capitalization thresholds called “Softcap” and “hardcap”.
The Softcap is the first capital threshold that most ICOs seamlessly reach, according to experts, and Hardcap is the total capitalization threshold that the company wants to accumulate for the digital currency to be launched. At the next stage, “Pre-sale”, anyone can reserve a number of digital coins through a “white contract”. Not all ICOs make reservations. The third step is “Crowdsale” in which anyone can purchase, this being the moment when the ICO is actually launched.
There are few ICOs that allow direct investment in fiat. Most accept bitcoin or Ethereum. ICOs operate on the “smart contract” principle of Ethereum, which means that when the currency is launched, investors in its private and pre-sale receive coins automatically in exchange for the coins they have invested.
When a coin launches, it does not automatically list on exchanges. This process takes time, according to the experts.
For most investors, ICOs have proven to be the most profitable ways to invest in the cryptocurrency market. According to the statistics, Ethereum was launched at the price of $ 0.314, with the return of investment going 2 years later to 340.000{b96076133fe2223c8d05470fe9428b3312879515b4c32f98bade61cbd4879fe1}.
The wallet is the first step to enter the world of cryptocurrency. This is an electronic wallet, and its access is via a code, which is the private key of the user. When you access an exchange and enter the private key of the wallet, it gets virtually online and becomes vulnerable to cyber-attacks.
Hardware developers have looked for solutions and thought of safer systems (e.g. Nano Ledger S – it works as a memory stick that stores the private key.) When you put this device in your computer, you can use the stored key to access the wallet, but it does not reach the online environment, which means it remains protected and not vulnerable to cyber-attacks).
If a user loses his private key, nobody can give him access to it, and that wallet will become inaccessible.
“Do not sell when the market is down. Then it’s time to buy, “is one of the main slogans of investors specializing in cryptocurrency.
Trading on the cryptocurrency requires primarily “emotion management,” a high dose of patience, risk tolerance, macroeconomic knowledge and technical analysis of graphs. Some specialists are of the opinion that chart analysis is important, but not as relevant as in the stock market, because volatility is much higher, and the market is more sensitive.