What is ICO-Initial coin offering

I  first knew about ICO when I was given an article to write by a client on a freelance

website, though I never knew anything about ICO, I decided to give it a shot; I jumped on the search engine and that was how I started expanding my knowledge on ICO. ICO is an acronym which means initial coin offering.

ICO is a way to raise funds by for a new project (or cryptocurrency venture), this project is always a new one, ICOS is not regulated by any particular body, that’s why new ICO springs up every day.

Ico is used by startups to escape the tough and regulated means to raise capital through capitalist ventures or banks. In an ICO campaign, a given percentage is offered for sale to early backers of the project in exchange for a higher valued cryptocurrency, especially bitcoin.

When an initial coin offering is about to begin, the firm put up some important things such as the white paper and a website.

The white paper gives a full insight on how the ICO will be run by

·         It states details of the ICO project

·         How much capital is needed for the project

·         The problem the ico will be solving

·         The amount of token or coins to be sold out

·         The kind of cryptocurrency that will be accepted from backer

·         The duration of the ico

During the ico those in support of the project are allowed to buy some coins with other cryptocurrencies like bitcoin. This is similar to ipo (initial public offering) where companies sell shares for investors

The money raised from the ico is used to complete the project but if the ico fails in some cases the money is returned to the ico backers.

Participants of ico normally believe in the progress of the ico so they acquire the crypto coins at a very reduced rate hoping that the coin will be listed on the coin exchange market where they can trade with it, some can decide to keep their coin for a long time before deciding to sell it off for higher profit.

Example Mr A bought an ico coin for $0.7 and when it was listed on exchange the price of the coin went from 0.7 to $20 per coin in this case Mr A has made a huge profit by selling what he bought at 0.7 for $20. This is the kind of magic ico can do for his backers or supporters.

There are different ways to make money using ico which will be coming up on this blog.

what you also need to learn is how to get bitcoins or how to buy bitcoin which is very important for you to get your token when the time comes

the easy way to money with bitcoin without investing is by doing airdrop and bounty as this will help you know how to get bitcoins for free.

you can check preeve.com for bitcoin price usd