The world is talking about cryptocurrencies. Bitcoin, Ethereum, Ripple, you probably hear something about it. Cryptocurrencies are popular of it's trading value which make trading speculants makes their millions. But did you ever imagine how the cryptocurrency is born and how it operates before it become popular and tradable?
At first there is an idea based on blockchain technology. There are many different types of blockchains that can be used by businesses
Business build an economy that describes a usage of a new currency. To fundrise their idea or to make it going they run an ICO campaign to sell tokens which are in simple words tickets that will be exchanged to generated currency in the future.
When company will reach a goal and build a solution they convert tokens into cryptocurrency which makes it tradable on many exchanges.
You should think about token as investment in the stage similar to pre-IPO. If you know investments a little you know that investment in the companies that are trying to build IPO for your money can be risky, but if it goes well it can generate a huge profit. The world of tokens and IPO is simillar. Buying tokens is connected with financing an early stage companies. They want to sell tokens to make their idea a reality and to take it to the market extremally fast.
Buying tokens at the very early stage is very attractive. You're able to buy tokens up to 99% discount to the price that will be presented at the Initial Coin Offering (ICO)
Most tokens are locked before they reach exchanges and start to be tradable, but when they reach this point they started to be liquid asset. You can sell or buy those assets without control of the company.
According to many resources, investing in wide range of tokens can give a return up to 13 times even including the failures in the portfolio. The key to token investments is to invest right and wide!
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