By Adinah Brown

You may have heard of the virtues of the buy and hold investing strategy, however, in a fast-paced, global market, buying a blue chip stock and holding it for years is becoming outdated. Cryptocurrencies are no longer purely speculative, but are showing robust returns for investors. Just as stock investors can see significant gains on an IPO (Initial Public Offering), ICOs (Initial Coin Offering) are increasingly becoming the best way to catch growth momentum and to see healthy returns in digital currency investments. Those who are new to trading ICOs may be surprised at the ease with which these investments can be made and the security and strength of ICOs as investments.

ICOs have risen in popularity as digital currencies such as bitcoin and ethereum are increasing in value. Given rising prices of these two cryptocurrencies, investors who want to gain a foothold in the digital currency market are looking for less expensive ways. ICOs are a logical next step, because they can be purchased at relatively low prices and provide outsized returns in a relatively short amount of time. Companies benefit from ICOs as a means to fund their operations and create growth.

As with all new investments, it is important to do research to identify the most viable opportunities. Companies undertaking ICOs release white papers that should provide thorough information about the company and the ICO for investors. Transparency is an essential quality to look for in a company offering an ICO. Understanding the company’s past performance, future direction, market and products is helpful to any potential ICO investor. In addition to finding out about the company, it is essential to be clear about the terms of the ICO itself. The white paper should describe the venture, the amount of money needed for the venture and how long the campaign will last.

The ICO trend is worth getting into sooner rather than later. Many investors who were skeptical about bitcoin in its early stages now regret not buying the digital currency when it was still available at a relatively low cost. While bitcoin prices have risen significantly, there is significant upside potential to ICOs. Investing in ICOs is not complicated, and involves buying a percentage of the cryptocurrency in exchange for other currencies, such as bitcoin. ICOs provide significant advantages, including less paperwork than many other types of investment, lower fees and smaller minimum investment amounts. In some cases, investors can get in on ICOs for just a few dollars, making it a relatively low risk investment option.

ICO investing is the answer for those who want to benefit from the rise of digital currencies but are looking for a strategy with significant upside potential. Investors familiar with IPOs can apply the same principles to ICOs, which involve a quick yet stable way of seeing a healthy return on an investment. Reading the company’s white paper thoroughly and familiarizing yourself with the terms of the ICO and the operations of the company is the first step towards finding the best ICO investment opportunity.

About the Author:

Adinah Brown is a professional writer who has worked in a wide range of industry settings, including corporate industry, government and non-government organizations. Within many of these positions, Adinah has provided skilled marketing and advertising services and is currently the Content Manager at Leverate.