• February 2020
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How Do I Start Investing in ICOs?

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Initial coin offerings and token sales are becoming increasingly popular opportunities, but how does one start investing in ICOs? In the months since the first large-scale ICOs were launched, the investment community has become more knowledgeable about the ICO process and more savvy in regards to which are potentially solid investments vs. too high-risk for comfort. These opportunities have become so mainstream that investors are no longer asking “What are ICOs?” and “Are these opportunities worthy of investment?” but “How can I invest in ICOs easily and effectively?”

Because this investment platform is so new, it is still evolving. For this reason, it is generally a good idea to speak with an attorney before investing in ICOs. Seeking knowledgeable guidance can help to make the difference between successful investments and spending good money after bad. Once you have a sound legal and financial strategy in place, you can begin taking practical steps to becoming an ICO enthusiast. Because cryptocurrency is generally an unproven technology and many ICOs remain truly risky investments, it is advisable to start only by investing as much as you are willing to lose. As you become more well-versed in ICO investments and the market evolves, you will have a strong foundation of knowledge upon which to build. At that point, your choices will become increasingly likely to pay off.

 

ICO Investment Tips

There are many practical ICO investment tips to help you get started.  Forbes recommends that if you are seeking sincere value in your initial ICO investments to “look for a token that is integral to the function of the network and whose value should rise if the platform catches on.” Unless the token serves a genuine purpose, it is unlikely to maintain potential for growth long-term. Once you have made your decision, it is generally a good idea to avoid monitoring fluctuations in price too obsessively unless you are day trading. Cryptocurrency prices tend to fluctuate quite significantly before they level out. If you are confident in your investment choice, allow the cycle to run its course unless there is a pressing reason to monitor fluctuations closely.

Another important ICO investment tip is to do plenty of research around the technical aspects associated with initial coin offerings, as they can be highly detailed and hinge on a number of factors. As a result, it is important to understand exactly how to identify, purchase and safely store cryptocurrency or it could quite literally disappear. There are a number of online resources to keep up with developments in the market – Coinbase a well-established sita and we have a number of articles on our blog as well. And again, because the market is evolving so rapidly, it is a good idea to speak with an attorney familiar with this new form of investment in order to ensure that you remain in compliance with all relevant regulations as you research, purchase, store and sell this particular kind of investment.

 

Consult a Cryptocurrency Lawyer

If you are interested in investing in ICOs or in launching an ICO, please consider speaking with a top cryptocurrency lawyer at LawTrades. We have significant experience in all aspects of the cryptocurrency market and would be happy to answer any questions you may have around investing in ICO’s. Whether you are a potential investor, an aspiring startup founder or simply want to know more about how cryptocurrency is affecting the evolution of the business landscape, LawTrades can assist you with your legal, investment or startup financing needs.