A business may sell a brand-new cryptocurrency as part of an initial coin offering (ICO) to acquire capital. Cryptocurrency is provided to investors in return for their financial investments.
In many ways, an initial coin offering (ICO) resembles an initial public offering (IPO) in the stock market, but the coins issued may also be useful for a software service or product. ICOs are a method of raising funds for products and services that are typically connected to cryptocurrencies. In some cases, Investors receive payouts from ICOs.
One often needs to first invest in a more well-known digital currency after researching thoroughly about it. One should also have a basic understanding of cryptocurrency exchanges and wallets in order to take part in an ICO. Since ICOs are largely unregulated, investors must be extremely cautious and diligent while learning about and making investments in them.
