After Bitcoin, What’s Next?
Have you caught onto the cryptocurrency bandwagon yet? While the stellar rise of Bitcoin has generated major coverage in the mainstream media of late, some have still held back. Bitcoin looks set to be the next dot-com bubble, with block chain projects attracting huge valuations. The top five cryptocurrencies have already achieved the market capitalization of over 500 billion dollars. And while it remains a speculative trend without real securities, many have already made a fortune on the back of it.
Getting Beyond Bitcoin
But if you’re looking to emulate the success enjoyed by earlier investors, you need to look behind Bitcoin and setting up a site full of Crypto Promo Codes. There are hundreds of what are known as ‘altcoins’ – alternative virtual currencies that can make greater gains for you. However, picking between the hundreds of different alternatives can be tricky, and knowing which coins will generate the most interest is a tricky proposition.
The ICO Instinct
The ICO, or initial coin offering, that gains the most attention, can offer an attractive multiplication of your initial investment. So make it a habit to know what’s coming up and when. ICOAlert lets developers list their up-coming pre-sale currencies, with additional information such as profiles and a buy-in price. Use these sites to do your research, make a plan and have the funds available to invest.Have you caught onto the cryptocurrency bandwagon yet?Click To Tweet
Evaluate the Risk
If an ICO attracts enough investors, it will be able to raise the cryptocurrency. But for every success, there are many more failures. Get into the habit of studying the market to get a better idea of what may happen. The key at the moment is picking an ICO that has a clear purpose. Copying the decentralized currency model is no longer enough of a claim on its own – all cryptocurrencies have this functionality.
You need to identify the ideas that have something different to offer. Stay away from ICOs with a whole lot of jargon in their profiles – this shows at best, lack of a imagination and purpose, and at worst, a potential scam. Next, look at scarcity. What plans are in place to control distribution? What, when and where will be made available to buy, and what happens to an unsold coin?
Rarer coins are going to fetch more of a return. Look at how many will be available for pre-sale and the time window for investing. Find information from forums like Reddit as well- who is talking about this ICO, and what is the general mood like? Be cautious of bounties as well, a practice that rewards those involved in hyping up a scheme on discussion forums.
Check the team profile to see who exactly is involved and what their history is – try to pick ICOs with sizeable teams of veterans. Finally, make sure that the blockchain it’s launched from is stable, as the new cryptocurrency can initially only be traded in those parameters. An obscure chain could lead to a constraint on price, whereas a more secure one like Ethereum will be easier to make profits from.