There are various benefits of conducting an initial coin offering both for an entrepreneur and the investor. For the investor, ICOs are the best way of funding your start-up because they circumvent the stringent rules and regulations that come with IPOs. Furthermore, launching an IPO is not expensive when compared to IPOs. Investors too benefit from ICOs because they buy coins whose value may increase in the future and sold at a profit. As an investor, there various factors that you need to consider before buying a digital currency offered in ICOs. These are as follows:
Firstly, you must carefully and keenly read the white paper. The white paper is written by the company that seeks funds and has different pieces of information that investors can use to make buying decisions. You must ensure that the white paper clearly states the name of the company, its goals and visions, the products and services that it offers and the team responsible for the project.
Project technology- before making a decision to buy the coins offered in an ICO, you must ensure that you understand the project technology.
Methods of raising funds through ICOs- The best method of raising the funds is through crowdsales. However, most people still prefer to comprare Bitcoin, instead of investing in ICO.