Initial coin offering is a fine way of earning money. It is based on investment into startups. Investors choose a business and put tokens into it.
ICO operates on the virtual market. All operations are virtual. That is why all stages of virtual banking are crucial for ICO to function.
How Bank ICO Works
If you would like to understand how to invest in initial coin offerings projects, you have also to understand ICO banking basics. Here are some principles of its work:
- It uses virtual currency only. Only cryptocurrency is used in initial coin offering. All types of currencies are encrypted and kept virtually.
- It operates on the principles of monetizations. Investors invest tokens. Tokens are different each time. If a startup gets launched, new tokens can get monetized. It becomes the next e-currency.
- It works on a basis of smart contracts. Smart contract is a recent phenomenon. It was developed to facilitate the e-trade of virtual money. Smart contracts are signed automatically without involvement of parties. Today, much effort is put to make smart contacting more trustworthy.
- It is long-term investment. If you get involved into initial coin offerings project, you will see return on your investment in the long run. There is no way to get short-term return on money.
- Money is kept in e-wallets. Investors get special e-wallets where they can keep their tokens. There are different types of e-wallets for different types of currency.
- It is not regulated legally. What you have remember about ICO banking is that there is no legislation that explains its functionsing. ICO is still not accepted in many countries. National banking systems hardly adapt to this type of operations.
- Investors can exchange tokens for real money. It is possible to exchange virtual currency into real money if needed. It attracts investors to ICO.
- An investor in ICO does not lose money. He can accumulate points on account. He then can invest it in a different project.
These are the main principles of how ICO banking works. The most important is to choose the right ICO project. Then ICO banking will be easy to use.
Initial coin offerings get developed every day. There are many startups that you can invest into. Before you take a final investment decision, make sure to evaluate a project’s potential. Investment in a correct project will help you to get advanced ICO banking experience. It will help you to get a higher return on investment, too.