The world of cryptocurrency investing is indeed an exciting one and one that represents an opportunity to be involved in the early stages of what many think is the true future of world currency.

As you start your crypto investing journey you will be exposed to a number of new concepts, terms, and abbreviations.

At first the number of new terms and phrases may seem a little daunting, but with a little research, practice and the help of the TransferGo Blog you will soon understand the new terms like a pro.

One of those terms will be ICO.

An “ICO” is an Initial Coin Offering; occasionally it will be called an IPCO or Initial Public Coin Offering. It is the means by which a start-up raises capital to launch a new crypto.

An ICO is the cryptocurrency equivalent to the stock market’s IPO (Initial Public Offering). There are a couple of significant differences between the two. Typically, those who participate in IPOs are investors, ICO participants are typically supporters. The other main difference is in the area of regulation.

ICOs are typically unregulated. During the ICO a percentage of the crypto is sold to early adapters. In return for their investment, investors receive a percentage of the cryptocurrency.

The first part of the process is the preparation of a whitepaper, which is a written plan that outlines most aspects of the venture. Typically the whitepaper will include the amount needed to fund the project, the goals of the project in terms of market niche, the projected cap on the total number of coins to be issued, the percentage the founders will keep for themselves and the length of time the ICO will be available.

Generally if the total amount needed is not raised, the money is returned to the investors.

Those that participate in a successful ICO receive tokens, which are similar to shares of stock, in the new crypto.

Those early supporters are hoping for a nice return on their investment.

Those who participated in the ICO for Ethereum received coins valued at $0.40 in 2014. Total Ethereum is valued at just above $500.00.

As with any investment, it is important to do your research as several fraudulent ICO schemes have been launched.

TransferGo is a great source to learn more about cryptos and ICOs. The TransferGo blog has published a number of articles dealing with cryptos and other currencies. TransferGo now offers an easy way for customers to buy and sell a number of cryptos. To stay up to date on this new service, to download the free TransferGo app.


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