As I've seen mine not, can I get rich investing in an ICO?

Well, I’ve seen that by mining Bitcoins I’m not gonna get rich.… we have to keep looking for a method. I’m sure you’ve heard of the ICOs in relation to cryptomonedas. In this entry we will explain what an ICO is and why you have to be careful with them but sometimes they can be very profitable.

What’s an ICO?

The acronym comes from English Initial Coin Offering. This is about a project that wants to take out a new cryptomoneda or token to solve some problem… for example, there’s a crypt call Power Ledge (POWR) which is intended to ‘pay’ for the energy exchange between them when one has an energy deficit and others have surpluses. So, an ICO is formed with that project behind it, the token is created POWR, a «pre-mining’ (

oins / «rel =» noopener «target =» _ blank «> we talked about mining a few weeks ago) and is offered to investors to buy it, so that they finance part of the project as if from a crowdfunding It was. People go crazy to get these new crypts because when the project comes up and gets into a Exchangethe other investors buy and sell, so the price at which they have bought the ‘early adopters’ is fired… as long as the project goes well, of course.

It looks like a good business, doesn’t it?

Yeah, if everything goes as it should, It’s a good business… but if the community doesn’t believe in the project or believe in it, but they think that the money out is deorbited, the token low price quickly (I’ve seen 90% of the value down in 10 minutes). It can also happen that whales (whales In English, large investors) buy a lot of these new coins and, when they reach a price that is reasonable for them and gives them benefits, they sell everything they have (I have seen sales of 88% of the total of the coins in circulation in a matter of minutes), so the price is literally plucked.

I mean, that you should be very careful with the ICOs not to lose part of the inverted. If everything goes well you can make a lot of money with a reasonable investment (if you invest $50, no matter how much your coin makes an x2 or an x3 you won’t get rich), but there’s a lot of chance it will go wrong.

And what about those new cryptomonedas?

The new cryptomonedas remain on the market as long as the project does not disappear. They may have come out at too high a price and suffered a correction, but little by little and if the project evolves and is meeting milestones, signing agreements, etc., they will continue to rise in value. To these coins and tokens they are known as altcoins.

Some of these new ones crypto end up becoming full coins. For example, Etheum It came to improve the time of Bitcoin transactions, which you already know are computer-heavy and require a lot of energy. With Etheum, in addition to being the much faster (and therefore cheaper transactions both energitically speaking and with the associated commission) it allows to incorporate additional information, so that the so-called ‘smart-contracts’ or intelligent contracts, which will remain forever included in the chain of blocks (another day we’ll talk about

The smart- contract and how many things are going to change, I’m in.). Another parallel example could be Litecoin, which is identical to the Bitcoin but with a block size that allows you to be much faster (and efficient) than the Bitcoin.

In turn, based on the idea of Etheum, much more projects have come out, even whole network of blockchain on which to implement your services as they can be Icon Network (https: / / icon.foundation /? lang = en) or VeChain. O tokens dedicated to a specific exchange work, as could be the case of Ripple which arose in the face of the need of the banks to avoid the change of the dollar in the payment of commissions between entities… and a few hundred more cryptomonedas all of them at a more or less reasonable price.

What requirements should an idea meet in order to form an ICO?

To create a cryptomoneda or a token You just have to have the idea. If you meet the requirements of the protocol, you have a project with a consistent idea and create a whitepaper promising, you don’t need much more for people who trust your project and start acquiring the token to interact with the network… or that’s the basic idea, since In most cases these coins are acquired as a purely speculative purpose because when the service is launched they have a very reasonable price but as services are added and the defined phases are fulfilled and

n whitepaper, interest (and use of the network) is growing and its value is increasing.

But of course, not all are safe investments, some of these projects stay the way and disappear (also disappearing the money you would have invested in the cryptomoneda if you were not able to sell it in time) or merge with others that fagocite them or simply fulfill their roadmap but the project has no interest because others have come out much more interesting… the case is that If you decide to enter this world to invest and try to make you rich, not only will you have a terrible time because of its volatility, but you will have to be very attentive to the technological news.

Since a news like the one that Surkorean Prime Minister gave a few weeks ago saying he was going to ban the use of cryptomonedas makes the price fall for a few days… and you would obviously have to sell as soon as this man gives the news and starts spreading over the net, as if you wait a little bit you can lose a lot of money.

It’s a pretty risky mess as you can see… but it’s cool to me! I’m afraid I’m just a step away from ludopathy: D Since I’m more or less up to date with the technological news, I thought it would be relatively easy to go into research on these projects, check if they have movement in their forums, if they update the code of their network in Github (as long as you don’t get a ‘Kame Hame Ha ‘ As we saw a few days ago) and check that they are actually moving forward or whether the project is in the process of being abandoned and it is better not to enter

I was there… but nothing further than reality. I’ve met economists doing market analysis and checking price graphics with techniques like Elliot Waves, Fibonacci and RSIs… crazy! So it seems that getting rich isn’t going to be as easy as it seemed at first, I still need a couple more months… I’ll tell you the advances: D