The next step involves the user to decide which ICO they wish to invest in. How does one make a choice? Do a thorough background check on the project members. Understand what the whole project is about and also keep tabs on the white papers of the ICO offering. A white paper is nothing but a documentwhich furnishes the basic details of the project.
Once an ICO has been chosen, a cryptographic message is sent to the postal details provided by the ICO service provider. Once they receive the cryptocurrency units from a user, the amount is reflected on their website which flashes how much investment is received so far. As more and more investment is pumped in, the price of each ICO coin unit increases.
Once your transaction is complete, it is always advisable to make use of an offline storage model to store the necessary cryptographic information for a user to cash in on the coins. It is also called as “Cold Wallet Storage” and remains one of the most effective ways to store and protect your ICO coins or any other form of digital currency.
Regulations and Security Features On Offer
There is always a rising concern amongst people concerning the security features which ICO service providers offers to their customers. It is very common that phony ICO providers accept cryptocurrency investments from users and finally elope, making it a perfect crime.
Due to such instances, the ICO industry despite it being a very appealing one, is walking a tightrope when the trust factor comes into picture. Hacking remains one of the major concerns when it comes to Initial Coin Offerings. As much as it attracts investors, it also attracts potential hackers along with it as well. To tackle this, ICO service providers are adopting a number of reliable security measures, so that the transactions are protected and safe.
One of the most common methods is email authentication and Google authentication. This is supposed to be part of every login process.
Another must-have feature is a smart contract feature. This generates a number of addresses from just one funding address. This way there isn’t’ just one address which a hacker can attack. Multiple addresses reduce the risk of attack and in order to secure a large fund, the hackers must access multiple addresses making it virtually impossible.
Major ICO service providers are not regulated by any central government. Hence your investment is free from taxation laws and your money is virtually your own.
Future Of Initial Coin Offerings
These are just some of the few interesting features which modern-day ICO service providers have on offer. The industry is expected to grow at a rapid rate in the years to come and now is actually the very best time to invest in ICOs.
Despite the negative aura surrounding Initial Coin Offerings, people are still flocking to invest them. Earlier on ICOs were being offered at relatively low starting rates. But now, the prices are growing at exponential rates. Hence, now is the best time to invest.
Another reason why ICOs are very reliable is for the fact that they are considered to be the future when it comes to start-up funding. Newer ICO service providers are coming up with appealing projects and this is surely going to attract a ton of investors to their fray.
People have tons of cryptocurrency units at their disposal, but they have no clue as to what could be done with them. They either en-cash them or just watch their investments grow.
With the help of ICOs, they are exchanging one cryptocurrency for another exciting cryptocurrency unit. Pretty exciting, Isn’t it?
This article has been republished with permission from Modest Money.