The whole concept OF ICO’s or to give them their full title initial coin offerings, is a good one, for it is a way of any company, individual or organisation to be able to raise much needed capital, and then use the capital raised to help launch or grow and expand a business.
However, over the last couple of years especially, with some start up businesses having achieved some massive funding goals by launching their own cryptocurrency coins or tokens that has led to thousands of other people and businesses doing the same or at least trying to do the same.
There was a time when there was plenty of investor’s cash sloshing around the cryptocurrency environment that ensured any good business idea that required funding could quite easily achieve their funding goals via an initial coin offering, but those days are sadly coming to an end.
As the sheer number of ICO’s going live has increased the collective pot of cash available from investors has become smaller and too widespread which means many ICO’s that have been launched in the last six months at least have fallen by the wayside and have not reached their funding goals.
ICO Investing a High Risk Investment
One aspect of investing in newly launched coins and tokens that have been launched to help raise money for a start up or growing business is that it is a very high risk environment and one that not everybody is cut out for.
Therefore the onus of doing all due diligence is on you, for without spending as much time as is needed checking every aspect of a start up and initial coin offering there is a very high chance of your investment going south so to speak and becoming completely worthless.
Standard Digital Currency Pairings a Better Trading Option
As for just what types of investments are going to be the best ones for traders to make use of when they want to include cryptocurrencies in their investment portfolios, it could be the case that standard pairing trades are going to be the easiest ones to place.
Obviously being a win or lose type of trade there are risks associated with using a Forex Brokers trading platform to try and profit from the rise and fall of any digital currencies, but it is certainly a tried and tested trading environment and one many traders can and do succeed in.