Some Things Investors Need to Know About The Cryptocurrency Market

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New financial systems are emerging in the United States with the advancement of Bitcoin and the cryptocurrency market. These systems provide financial freedom and power for the people to control their currency. People can easily undertake contracts in complete privacy without the interference of banks and governments. In short, cryptocurrency is here to stay for a long time and going nowhere because of the substantial benefits it offers to anyone seeking to complete secure financial transactions regardless of the presence of a central authority.

The initial coin offering is the most important aspect of the new cryptosystem. This year, blockchain-based businesses raised more capital via ICOs than via traditional equity funding.

What is ICO about?

An ICO is essentially a fundraising method based on cryptocurrency. Investors sign up to receive a certain number of tokens of the cryptocurrency – possibly even ahead of the ICO itself – usually at a significant discount.

SEC, the United States Securities and Exchange Commission, has taken steps to regulate ICO after the hacking of DAO. Digital tokens and coins are referred to as currencies, and federal security laws apply to them. On the other hand, the People’s bank of China has classified ICO’s as illegal. The picture is more encouraging in Europe and Switzerland who support the development of ICT. The global ICO market is expanding at a rapid pace as Russia has recently launched the Cryptoruble.

In the future, ICO will undoubtedly face increasing regulation around the world. Though this may make companies behind ICO’s jump through a few more hoops, overall it should encourage more investors to take a serious look at ICO’s as a viable part of an investment portfolio.

How to Get Started with ICO

The first thing you should do to get familiar within the ICO process is to conduct some research and analysis. Take a look at increasingly popular indexeslike Tokken Market and ICO countdown, gather information about companies from the White Pages and examine their team. Consider as much information as you can get your hands on before making the final decision as to whether an ICO is right for you.

Beware of Fraud

You should look for some red flags as well regarding partaking in ICO’s. You can find lists of fraudulent cases on the web. Remember that there is no guarantee of return on high investment. A lot of fraud schemes these days involve unsolicited sales pitches to fool the customer. The old adage of “if it sounds too good to be true, it probably is,” certainly applies in the cryptocurrency arena. An investment opportunity must be researched well before investing; try not to succumb to the pressure to jump onboard until you’ve taken a long hard look at the concept and the company.

How to Invest

Now that you have done your research and are ready to invest, buy some Ether or Bitcoin first. You can pick them up easily from Coinbase and transfer out the exchange to a private wallet like Eidoo. Find the address of the ICO, and you will find ICO participants easily using Eidoo. The app includes everything you need to transfer out the coins and participate in your first ICO!

CannaSOS is an example of a trusted company that has recently embarked on an ICO. Their mission is to integrate blockchain technology into the worldwide canna space through their PerksCoin. The cannabis industry has faced countless hurdles in integrating into national and multinational financial systems, so a cryptocurrency and transaction platform could do a lot to benefit canna-based businesses. The PerksCoin is also planned to be used as a loyalty program among the cannabis industry and as well as other industries. The site currently boasts upwards of 990 business pages and 210 social groups. New cryptocurrencies are coming online at an ever-increasing rate, so do your homework, and happy investing!

Melissa Thompson writes about a wide range of topics, revealing interesting things we didn’t know before. She is a freelance USA Today producer, and a Technorati contributor.