Most crypto enthusiasts are aware about ICOs (Initial Currency Offerings), these are events that happen at the start of a blockchain and crypto project. For this discussion we use the terms ‘crypto tokens’ and ‘crypto coins’ to mean one and the same thing. The general trend is to price a token attractively during the ICO process. The excitement for buying crypto coins is high during the ICO phase.
It is possible to make a cryptocurrency purchase even after the completion of the ICO. Interestingly, making a purchase during this phase has some advantages. It is always a good idea to do some research before purchasing any crypto currency. Here are some useful tips for purchases being made after an ICO has ended.
To begin with, track the price at which tokens were sold during the ICO. Analyzing the crypto currencies launched in the past 5 to 6 months reveals some vital information. More than 70% of these crypto issues, were quoted at prices (after the ICO) that were around 40% to 60% less than their ICO price.
By way of information we might mention here that, crypto currencies are listed on various crypto exchanges. Trade in digital currencies is conducted through these exchanges. Keep an eye on the price at which a cryptocurrency debuts on the exchange, avoid buying a crypto currency that is listed, significantly below the price at which its ICO closed.
While the current and past price of a crypto token are important, the days of focusing on price alone for decision making are over. A thorough look at the entire project will provide, some vital insights into the prospects of the token price. As an example, a project that is focused on improving the performance and efficiency of a specific industry, has a better chance of performing well. Projects that offer little substance besides, the crypto token are generally being ignored in recent times.
It is no secret that the price of a token would reflect the demand for the cryptocurrency. There was a time not so long ago when, crypto space participants could do little more than, keep fingers crossed and wait for the market elements of demand and supply to play their roles.
The scenario today is different and a new breed of blockchain and crypto projects are delivering positive change. The buzzwords are ‘industry specific blockchains’, projects that are dedicated to a real life industry. These projects strategically identify areas or functions in an industry that, have scope for improvement. Read on to understand this concept much better.
Industry specific blockchain projects are configured to map the benefits of technology, with the weak points in the industry. Some of these projects focus on improving market reach for the products or services provided by the industry. The ideal way to achieve this objective is to implement a trading platform where, buyers can make purchases directly from the source. A crypto currency could be deployed to settle payments on the blockchain trading platform. This can streamline transactions within a nation and globally. Issues related to multiple currencies and currency conversions, become irrelevant as the crypto currency handles settlements.
Crypto currencies deployed on blockchain trading platforms, generate demand that is in addition to that generated by the crypto exchanges. When evaluating various cryptocurrencies on an exchange, preference for cryptos that are backed by such trading platforms should be high.
Every blockchain project flaunts a team, so is this an important factor in making a buy decision. The team would surely be one of the deciding factors but, it should be assessed and reviewed in the right way.
A crypto currency project that has nothing but the crypto in its plan, should ideally be headed by a strong personality with a financial background. On the other hand a project that is tied to a specific industry, would have better potential for success if, fully supported by a specialist from the industry. This is even more important in the case of, industries that operative in a more conservative or conventional way. In such cases, resistance to change and the reluctance to embrace technology can pose a challenge.
With digital currencies gaining popularity and many nations getting to understand them better, we see a rapid growth in ‘crypto related’ circles. Governments are pitching in by implementing legislation to make cryptocurrency activities safer. This report should be of high interest to both seasoned and novice crypto world participants.