What is an ICO in cryptocurrencies and how does it work?

Investments on ICO cryptocurrencies and their operation are one of the world economic trends. Cryptocurrencies provide an escape route from economic monotony, characterized by ruling those involved.

The economy emerges as a means of survival , focused on the production of goods or services, such is the case of the very famous cryptocurrencies, its beginnings go back more than a decade.

Cryptocurrencies are nothing more than digital money that is produced through mining, through computer equipment, such is the case of Bitcoin mining through the PC.

Index(  )

  1. What do the acronyms ICO mean?
  2. What is an ICO in cryptocurrencies and how does it work?
  3. Are cryptocurrency ICO markets safe?
  4. Advantages of getting away from the everyday life of the traditional banking economy
  5. How to choose a good token? Make sure very well before
  6. How to buy tokens during an ICO
    1. How to evaluate ICOs
  7. Financing in its different types
    1. By sale of shares
    2. With Debt or loans
    3. Grant
  8. Other modern financing methods
    1. Crowdfunding
  9. How to detect when an ICO is a fraud

What do the acronyms ICO mean?

The acronym ICO is the initials in English of Initial Coin Offering that mean initial coin offering . And it is an acronym widely used today for the emergence of cryptocurrencies. And through the ICO you can finance the birth of any other virtual currency. As was the case with Bitcoin and this is done as we already know through mining.

What is an ICO in cryptocurrencies and how does it work?

Investments on ICO cryptocurrencies and their operation provide a parallel way to the types of traditional economic systems. An ICO in the world of cryptocurrencies is a form of ‘initial coin offering’.

The above means that an ICO is a cryptocurrency that is in its initial phase of availability, for the purchase-sale process. The establishment of the price of the same is granted in relation to the laws of supply and demand.

The more desired a cryptocurrency, the more expensive it is. However, when ICO is in the process it starts at a very low price, therefore, its success depends on the demand.

The investment processes to obtain profits in a cryptocurrency are quite relative and ambiguous, therefore, anything could be expected, in a short time any currency in the initial phase could have a quite significant rise.

It all depends on how the cryptocurrency markets are, including the most famous ones such as Bitcoin, Litecoin, Ethereum , among others and especially those that are in the initial stage. However, in any of the phases it is imperative to make investment decisions.

Are cryptocurrency ICO markets safe?

Investments on ICO cryptocurrencies and their operation establish a reliable way to market digital money. Many question its safety and some exaggerate, thinking that it may be a lie. The truth is that they are real and quite safe.

The possibility of economic growth is very possible, however it must be marketed boldly and, if you still have doubts, you should have peace of mind, because all the processes related to cryptocurrencies are supported by ‘Blockchain’ technology.

The technology in question allows to establish 100% security between user transactions worldwide, without any kind of intermediary, which provides an effective way to protect assets.

It is highly recommended to enter this economic avant-garde, since it provides a form of parallel economy, since the importance of the economic daily life of traditional banking markets is in a declining stage.

That way you can have a certain type of economic independence, without depending on third parties or economic institutions, bureaucracy is eliminated in digital economic processes. That indicates that any cryptocurrency process is positioning itself above the old way of marketing the economy.

Advantages of getting away from the everyday life of the traditional banking economy

Investments on ICO cryptocurrencies and their operation are carried out more frequently than in previous years. The money markets banking or functions of the stock market  have occupied a senior post for decades.

If you are one of those who are tired of the monotony of the capital markets, especially those of traditional banking, you can take a 360-degree turn when entering the cryptocurrency market.

Many benefits can be made through the capital markets, but it is less likely to achieve higher profits, unlike the digital economy of cryptocurrencies which provides greater possibilities for profits.

The truth is that it is clearly valid to want to enter any money market. However, it is advisable to do so in the digital economy of cryptocurrencies. The number of digital currencies out there is impressive, some are more successful than others, after all, they belong to the same system.

On the other hand, it is very necessary to be aware of the capital markets, because, in this convulsed world, the fact of generating profits at any cost cannot be set aside .

How to choose a good token? Make sure very well before

This is one of the most important aspects when investing and is choosing a good touch that can offer you profitability.  It is necessary that you study the market , but as a general rule it is better to invest in those that offer you long-term profits. Therefore, it is preferable that you consult lists of the currencies that have the highest purchase rates.

How to buy tokens during an ICO

Although it may not seem like it, buying tokens is a very simple operation to do and you only have to comply with the steps that we will list below:

  1. Register with an ICO

This first step is very important, since you can find ICOs that do not offer you to register so you can buy tokens. Something that can be very dangerous, for this reason we recommend that you look for a website where you can register for the ICO . And then you can do the whole verification and identification process.

  1. Buy cryptocurrencies

Once you have completed the registration and verified your identity, you can now buy the tokens and in this case we recommend buying Ethereum. And in this case you will buy Ether which is the token that will be sold during ICOs . The amount of minimum tokens that you can acquire will be determined by the ICO you are using and will be indicated by the White Paper.

  1. Pass your tokens to your wallet

Performing this step will offer you to have control of your cryptocurrencies and not let your tokens remain in a wallet that has been provided by an Exchange.

  1. Buy the tokens

At this point you will already have the possibility to buy the ICO tokens , as long as you have the necessary funds to make the investment.

  1. Send your tokens to the address provided

This step is also very important and you must make sure that the address they provide you is real and that it is not a scam. You can easily verify that it is a legitimate website by the number of transactions that take place .

  1. Receive the tokens to your address or wallet

Once you have sent the funds, you must wait for the tokens to arrive in your wallet, as this is the first time you carry out this operation you may be a little nervous. But you must be calm, because although this process may take longer than you think , even months your investment will be safe.

How to evaluate ICOs

In the market we can find many ICOs and each of them will promise you benefits and great profits. But it is always necessary to stop for a moment to evaluate each one of them, in order to know what is really an opportunity to invest. But the most important thing is to be able to make sure that this ICO is not a scam and that we lose our investment.

Financing in its different types

Every project needs financial resources that have to come from somewhere and therefore it is necessary to resort to different sources of financing . And then we will explain each of them, which are Subversion, the sale of shares and debts or loans.

By sale of shares

In practice, financing by sales of shares is the one that is most used today, since it can be carried out in different ways. Either through public or private offering and in this way the shares that are sold can obtain profits if the price at which they were initially sold rise in price in the future.

With Debt or loans

Debt or loan financing is simply asking for money from either a financial institution or a public institution that is dedicated to this work . You can also turn to individuals, but their interests are usually very high. Therefore, when acquiring money in this way, you must pay an interest that you have to know if you can cover it.


This is another form of financing that can be very appropriate, especially since in some cases the borrowed money is not returned. The subsidy is a type of loan that is made by a public or private body. But without going with it the obligation to deliver the borrowed money or some type of interest .

Other modern financing methods

But these ways of getting money or obtaining financing can be a way that generates many obstacles or problems. Therefore, novel financing methods are being adopted that are becoming very popular. And in this case we are talking about Crowdfunding, a way to get money and thus be able to finance our investment projects.



At present, Crowdfunding is being used to obtain the resources that are needed and this through a network of people . This money is usually collected in a certain period of time, which in most cases is in a month. And we can find many web pages that are interested in financing your project, they can also be called donations, loans, rewards, etc.

How to detect when an ICO is a fraud

It is very important that before you immerse yourself in this virtual financial world, you can recognize some aspects that can give away a fraudulent ICO . The first one has to do with the Whitepaper, since in some cases it is non-existent or it ensures that you can multiply your capital if you invest in Bitcoin or Ether because they are currencies with constant growth.

This is a gigantic lie and it is only leading you to invest to lose your money, since no ICO can guarantee that you will double your investment. They also usually use the Ponzi scheme where they ask you to find people to join the ICO . How can you see if you study and know how ICOs work, you can make investments with a calculated level of risk.

by Abdullah Sam
I’m a teacher, researcher and writer. I write about study subjects to improve the learning of college and university students. I write top Quality study notes Mostly, Tech, Games, Education, And Solutions/Tips and Tricks. I am a person who helps students to acquire knowledge, competence or virtue.

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