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How To Make A Profit From Your ICO Investments

Initial coin offerings (ICOs) have become a popular way for companies to raise capital. They can be very profitable for companies and investors, but many are at risk due to their unregulated nature. Let us look briefly at what ICO is and how it works. 

What is ICO?

An ICO, similar to an initial public offering (IPO), is a way for a startup to raise money. In an ICO, a company raises funds by selling cryptocurrencies. They create digital tokens like Bitcoin and sell those tokens or coins to investors in exchange for goods, services, or money. 

With these coins, buyers receive special perks such as discounts, offers, and even stock in the company. Like an IPO, a company aims to raise a certain amount of money within a certain period of time. If this is not successful, the ICO will be considered unsuccessful and the value of the token will be reduced.

Moreover, attitudes towards ICOs vary from country to country. While China bans ICOs, calling them “illegal fundraising,” countries such as Singapore and Switzerland encourage ICOs and support startups in an environment favorable to their success.

How does an ICO work?

The ICO funding model allows startups to raise capital by issuing tokens on the blockchain (a list of records protected by cryptography) and distributing the tokens in exchange for monetary contributions. These tokens can be transferred across networks and traded on cryptocurrency exchanges and perform various functions, from granting access to certain services to entitlement to company dividends. Depending on their function, tokens can be classified as either utility tokens or security tokens.

Utility token

Utility tokens, also known as “user tokens” or “app coins”, represent future access to a company’s products or services. Through utility tokens, ICO startups can raise capital to fund the development of their blockchain projects in exchange for users` future access to the service. 

Utility Tokens were not designed to be standard investments in corporate stocks and, if properly structured, this feature exempts Utility Tokens from federal securities laws.

Security Token

Unlike utility tokens, if a token derives its value from external tradable assets or increases in value through the efforts of others, it will be classified as a security token. It may be subject to federal securities regulation. 

Failure to comply with these regulations can result in hefty fines and the demise of your project. Therefore, companies must comply with all regulatory obligations. 

Factors that can help you make a profit from your ICO investments

An ICO (Initial Coin Offering) is a way for new cryptocurrency startups to quickly raise funds to develop their projects and coins. It is also a way for investors to get good returns by investing in promising ICO companies.

Research 

The foremost thing to do, which majorly applies to all types of investments, is to do research. Research the ICO project, the company and people behind the project, the project concept, market analysis and value, commercial applications, and everything else. Search popular cryptocurrency forums for information about a particular ICO, ask questions, and learn as much as you can about it. Read the project white paper to learn more about the team, and visit each team member’s social profile to see their knowledge, skills, and experience.

Invest in Good Coins

Invest in Good Coins

It is easier said than done, but choosing a promising ICO to invest your money in is critical to your investment success. How does that work? First, you can do a lot of research on the company and the project. Then you can read about cryptocurrencies and how they work. How will the value of the currency grow and what are the risks involved? Is there any practical use for this coin in the commercial market? Check these things out to make sure your investment is actually paying off.

Don’t Miss Your Bonus Tokens

One of the best things about increasing ICO competition is that you can enjoy good bonuses on your investment. Most ICO companies offer early investors bonus coins as a percentage of their initial investment. Be sure to grab these bonus tokens as They are free and can generate big returns. The sooner you participate in the ICO, the more bonus tokens you can collect. Try to participate in the pre-ICO phase. 

Hold, Sell, Repeat

The value of a cryptocurrency only increases after it hits the market, but that depends a lot on how realistic and valuable the concept of the token is. Coins can then be exchanged for other established cryptocurrencies such as ETH, BTC, or cash. For this reason, it is important to invest in tokens that can be traded on cryptocurrency exchanges. However, you should not sell all your tokens right away. We recommend that you hold at least 50% of your tokens for a few months before reselling your tokens.

Know the Risks

Instead of getting too technical, look for simple things like product ideas, white papers, teams, companies, and markets. Invest coins The purpose is to find the risks associated with investments. If your risk estimates seem too high, you should probably avoid this investment. Understanding and analyzing the associated risks is important, but don’t overthink them. 

Conclusion 

These tips will help you if you want to make good profits from your ICO investment. Be careful where you invest. Look for new and innovative cryptocurrencies. You can start by purchasing GDS coins. It can also be used for daily purchases and allows you to trade and exchange with other cryptocurrencies as well.
Also Read: What are the Advantages and Disadvantages of Initial Coin Offering (ICO)?

 

 

 

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Financial

What is a peer-to-peer (p2p) Exchange and How Does it Work?

A P2P exchange is a decentralized crypto token exchange that allows buyers and sellers to negotiate token prices prior to transfer. According to CoinMarketCap, there are currently over 9,000 cryptocurrencies with a market capitalization of over $2 trillion. Investors from all over the world are keen to trade in this rapidly growing market. As a result, many blockchain exchanges have emerged.

Peer-to-peer exchange platforms in particular are known for their decentralized networks, and transparent and highly secure transaction mechanisms.

What is a peer-to-peer exchange (P2P)? 

A “decentralized” exchange or P2P (Peer-to-Peer) is a software-based platform that allows crypto market participants to trade directly with each other, eliminating the presence of third parties. This made transactions the least constrained by simply deducting the risks associated with intermediaries, but increased the level of security and value citing the speed of virtual transactions.

What are the advantages of P2P exchange?

Multiple payment methods

There are differences between traditional exchanges and peers. There was a lack of multiple payment options when trading on P2P exchanges compared to peer exchanges when trading on traditional exchanges.

Provides privacy

Some cryptocurrency exchanges require you to sign up with certain details and proof of identity such as an email ID. There are some exchanges that need better knowledge such as Passports. Other than that, it’s a decentralized exchange, and no signup is required. Most peer-to-peer platforms tend to sign up, but don’t require specific information. 

Global market

One of the advantages of using peer-to-peer exchanges is the ability to access a global market of cryptocurrency sellers and buyers. This allows you to buy and sell cryptocurrencies in seconds with users worldwide.

Useful in countries with restricted exchanges

Several countries have strict cryptocurrency exchange laws. Similarly, peer-to-peer networks are known to provide better scores for government hostility. They do not exist within locations and cannot be restricted in any way. 

Safety

These decentralized exchanges contribute to the new security. Comprehensive security is then provided as no third party can mess with it. Users can properly manage other currencies and various types of securities.

Live trade chat

You can chat with your trading partners before making a trade. Clarify income requirements, see late transactions, and find out who you’re trading with. 

Customize Your Offer: Ad posting 

Ad posting capabilities allow sellers and buyers to tailor their offers to their preferred price, payment process, and niche currency. We create stunning advertising posts and offer decent trading conditions to crypto users around the world.

Customer service

If you have any problems with our P2P trading partners, you can get immediate help from Binance’s customer support team. Our customer support team will contact you via email. The customer support team will then come between the two to resolve the issue.

Zero commission

Traditional cryptocurrency exchanges act as middlemen, so all cryptocurrency transactions have low fees. Peer-to-peer marketplaces like Binance P2P allow you to buy and sell Bitcoin and other popular cryptocurrencies from other users without commission.

External limit

In the past, administrative restrictions have intervened in genuine crypto exchanges. P2P markets show that P2P markets facilitate transactions between people and that users are unpretentious with these restrictions.

Instant transaction speed

Peer-to-peer transactions can take anywhere from 20 minutes up to 1-3 business days. It depends entirely on the payment method you use. In general, virtual wallet transactions seem easy and instant, but there are some niche banks that take a day to process a transfer. That said, you may have to wait up to 3 days for international expedited transfers.

Flexible pricing

You can trade large blocks or start small with $3 cryptocurrency. If you are looking to create large crypto orders, you can contact experienced block traders on Binance P2P to buy or sell crypto.

How does a peer-to-peer (P2P) exchange work?

P2P (peer-to-peer) cryptocurrency exchanges allow authenticated sellers and buyers to manage hassle-free asset transactions. The Best Line Match Engine is used to match buyers with selected sellers. To manage trade requests, sellers or buyers may have more attributes than they expect from their peers. 

Few people identify P2P exchanges like Craigslist and Facebook Marketplace because P2P exchanges connect buyers and sellers of cryptocurrencies. The platform messes up two groups with related data.

In contrast, peer-to-peer cryptocurrency exchange models use to order books to match sell and buy orders and manage the platform’s equity funds, allowing market participation without the need for intermediaries to execute or hold traders.

What is the future of P2P exchanges?

Today, blockchain technology is fundamentally accelerating the adoption of decentralized exchanges thanks to benefits such as support for multiple currencies, faster payments, and better privacy and security, so it’s all decentralized. 

Although there are some limitations such as ease of use and ownership strains, as the technology develops, P2P exchanges are poised to become the future of cryptocurrency trading.

GDS, known as Great Deal Coin, is used for online payments for your daily purchases. It can also be exchanged for the services or items you want to buy. When a user uses Great Deal Coin to make a purchase, they save money on transaction fees and receive additional benefits. 

As a consequence, users will be able to make any purchase directly using Great Deal Coin in retail markets, physical stores, online E-commerce stores, NFT Marketplaces, Metaverse gaming assets, game tickets, and lands in the metaverse while avoiding any conversion costs. This is possible by connecting the crypto exchange, local currency exchange, and retail sectors via GDS Ecosystem applications.

Also Read: 8 Most Promising NFTs you Could Consider Investing in 2022-23

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Financial

What are the Advantages and Disadvantages of Initial Coin Offering (ICO)?

New technologies are being introduced regularly in this industry. Technologies bring advantages, but there are also some disadvantages and risks involved in them. 

This does not only apply to technology; everything in this world comes with its own advantages and disadvantages. 

It is up to us how we take it. Look on the brighter side and make use of its benefits, or just keep on worrying about the risks involved. 

That being said, Initial Coin Offering (ICO) also has some advantages and disadvantages. 

But before diving into it, let’s first take a quick look at what Initial Coin Offering is and how it works.  

What is an ICO(Initial Coin Offering)?

An ICO (Initial Coin Offering) is a type of digital coin that is used in cryptocurrency projects. An ICO is a method to raise funds used by startups wishing to offer products or services related to cryptocurrency and blockchain e-commerce technology. If you also want to participate in ICOs, you will have to buy digital currency and should be able to use them. 

How does an ICO work?
ICO Work

When a cryptocurrency project wants to raise funds through an ICO, the first step for project organizers is to decide how the coin will be built. ICOs can be structured in a number of ways, including:  

  • Static Supply and Static Pricing

Companies can set specific funding targets or limits. This means that each token sold in the ICO will have a preset price, and the total supply of tokens will be fixed. 

  • Static Supply and Dynamic Pricing

ICOs can have a static supply of tokens and a dynamic fundraising target. This means that the amount of funds raised in the ICO will determine the total price per token. 

  • Dynamic Supply and Static Pricing

Some ICOs have a dynamic token supply, but the price is static. In other words, the number of funds received determines the supply.

Advantages of ICO

Reachable for investors and new startups

Investors come from all walks of life, from freelancers to aspiring investors currently looking for college jobs. Each has its own budget when it comes to finding the right investments to grow your portfolio. 

Equities and venture capital are scarce, so companies using cryptocurrencies as investment tokens offer more access to diverse investors at all levels of the economy. This is beneficial for start-up companies that may not yet have the funding needed to launch a project, but may be able to increase its value over time.  

Online availability

 The main advantage of the Initial Coin Offering (ICO) is that all transactions are done online. Everything can be easily researched and tracked online. You must do the research and also check the following things;

  •  A white paper containing key project details such as problems to be solved, solutions, or actions to be taken. 
  • Team background, including team profiles 
  • Community pages on Telegram and Bitcointalk forums.
  • Challenges and upcoming plans for the coming months and years

High liquidity

 High liquidity refers to the ability of an asset to be bought and sold quickly in the market without significantly affecting the value of the asset. Considering that cryptocurrencies are safe, effective, and do not require a physical form of exchange, they can be relatively liquid and move faster compared to other assets. Additionally, investors can monitor their investments more closely by seeing the company’s performance and its price on the secondary market in real-time. 

Less paperwork

Traditional assets such as IPOs, stocks, bonds, and other forms of trading rely on various regulatory filings that are more or less time-consuming and labor-intensive. Even with a string of approvals, these investments may not even get the attention they need to raise money from the crowd. What makes ICOs more attractive than IPOs and other traditional assets is their reliance on blockchain technology to maintain a ledger of various transactions. This keeps the data constantly updated in just a few seconds.

Higher rate of return

Some of his most successful ICOs to date have started at relatively low values ​​and steadily increased their market value. The reason these Initial Coin Offerings were really successful was that they gave investors something new and exciting that other of his ICOs couldn’t. 

Examples include NEO or Antshares, which are considered the Chinese version of Ethereum. NEO is successful because it has exciting features such as: 

  • Digitized assets 
  • Peer-to-peer networking 
  • Secure identification 
  • Decentralized trading format 

 In addition, it is also backed by well-known companies such as Microsoft and Alibaba, making it one of the most reliable and secure ICOs. It also has an advantage over Initial Coin Offerings (ICOs) as it is backed by the government of the People’s Republic of China. The live price of ICO is $ 0.1377511 per (ICO / USD) today with a current market cap of $ 13.78M USD.

Disadvantages of ICO

Volatile

Different blockchain technologies are prone to different changes, especially since different ICOs are also competing in the market. There are so many factors that can affect the current value that investors should expect the price of an asset to change. You can expect rapid change. 

Misrepresentation

 The main drawback of ICOs is that you, the investor, have to carefully look at the profiles of their team members to see if they have the experience, technology, or blockchain knowledge to back up the claims in the whitepaper. However, not all investors have enough information to distinguish between good and bad Initial Coin Offerings. 

Many ICOs do not go through the same regulatory process as IPOs and other traditional assets. This makes them easily available and readily available, but leaves them vulnerable to fraud and other malicious activity, allowing illicit companies to withdraw more or less money from vulnerable investors. 

Lack of responsibility

Many ICOs come from startups and other private institutions with insufficient funding to launch upcoming projects. Investors can expect significant future investment returns, but there is no guarantee that the companies mentioned will deliver on their promises. 

When deciding which of the ICOs to invest in, investors are encouraged to research all aspects of the company, including reputation, key employees, and the number of successful projects.

Conclusion

There’s no doubt that Initial Coin Offerings (ICOs) are beneficial both for investors and companies. It has become the most convenient method of getting paid after offering benefits to investors. Before investing in an ICO, you must take proper precautions and do the necessary research.

We also have our own GDS coin, which is used for cryptocurrency projects and is beneficial for you to invest in. You can use it anywhere, even in your daily life for day-to-day expenses.

You can look into it and make your own decision about investing in the Initial Coin Offering.

Also Read: How to Create an NFT Marketplace in 2022?