A week ago, investing in an ICO seemed like a foreign concept. But now, after making my first investment it seems so simple. By the end of this article I want to have the confidence to find and invest in an ICO.
Interest in cryptocurrencies has remained steady until November this year when increased media attention sparked a craze among every-day investors with some spare cash. Suffering from chronic FOMO, I too decided to invest in cryptocurrencies.
Bitcoin is the easiest coin to invest in. Exchanges like c will happily take your cash in exchange for the current market value of Bitcoin, Ethereum or Litecoin. The ease of this process has made Coinbase and these three currencies skyrocket in value. However, the hype around these currencies, especially Bitcoin, isn’t warranted when you look a little further.
In the last 12 months, Bitcoin has increased by +2095.47%. A £100 investment on the 18th of December 2016 would now be worth £2095.47 just 12 months later. The same investment in my current savings account would be just £102.
Compared to a £100 investment in Litecoin, over the same period, would now be worth £8350 (+8406.08%) and a £100 investment in Ethereum would now be worth £9143.9 (+9079.87%).
So, if we do a little bit more research, can we find somewhere to put £100 that is currently pre-spike? This is what I was hoping when I invested in my first ICO.
What is an ICO? An Initial Coin Offering is a way for a start-up to raise capital in an unregulated and democratic way. You buy a popular cryptocurrency, like Bitcoin or Ethereum and then you exchange that for the ICO’s token.
After doing some due diligence, I decided to invest in Token Pay (referral link). The company has been around for a long time and their product road map looks solid.
To buy the coins, I first bought Bitcoin on Coinbase (referral link). The minimum purchase of Token Pay (TPAY) is 0.01 BTC and at the time that was around £110. I requested a payment link from Token Pay and sent the Bitcoin to the address. About 24 hours later the payment was confirmed and the TPAY was credited to my account. TPAY doesn’t hit the exchanges until Q1 2018 and so it doesn’t yet have a value.
So will you start investing in mainstream cryptocurrencies or will you chase the higher rewards that ICOs are promising?
All investments, especially cryptocurrencies are extremely high risk. You should only invest what you are prepared to lose.