Cryptocurrencies are perhaps the most profitable investment of the last decade. But, in recent years, so many new digital currencies have emerged that supply has exceeded demand, and the price of most of them has stopped rising. It’s time to invest in blockchain tokens — a digital analog of ordinary shares for investments in IT projects.
Blockchain Tokens: Key Things to Know
A token is a unit of accounting for assets in all kinds of IT projects, an analog of shares on the stock exchange. They are issued to attract funding to IT startups as part of the ICO (token issue) procedure, lending, and monetizing additional services for IT project participants.
Access to tokens is carried out with the help of special programs using a digital signature. This provides maximum protection for the ownership of electronic assets. After all, each transaction contains data on all operations performed with the tokens of the IT project earlier. Besides, the information is stored by all network participants, and not on a single central server, so the database cannot be hacked.
Tokens are managed using smart contracts (for example, Crypto Miner Token), and their development is usually implemented on Blockchain or Ethereum protocols in accordance with the ERC-20 standard.
Where Can You Buy Tokens?
Tokens can be purchased either during an ICO, companies that raise funds for an IT startup through the issue of digital shares — tokens, or after it, where the rate is determined by the ratio of supply and demand.
When buying tokens on ICO, it’s important to carefully study the idea of the project as well as its reliability. It’s also crucial to check the experience and positive reputation of the project programmers, as well as the presence of a white paper. Otherwise, the selected project may turn out to be unprofitable or even a scam. That is a fraudulent startup without the purpose of developing the project. Such projects strive to raise funds for the purpose of their subsequent withdrawal by cybercriminals for personal use.
Usually, to buy tokens on ICO, you need to go through the following steps:
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- Choose an attractive IT project;
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- Go to the official ICO page;
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- Go to the section of the site ‘Join the sale’;
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- Read the project documentation;
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- Choose a suitable cryptocurrency from the menu to buy tokens;
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- Enter the number of the cryptocurrency wallet;
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- Specify the address to which tokens will be credited;
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- Send the required amount of cryptocurrency to purchase tokens;
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- Check your balance.
As for the purchase of tokens on cryptocurrency exchanges, popular tokens can be bought on almost all exchanges presented in the network. Before buying a token, study the dynamics of its rate and news about the startup, to make sure not to buy an asset at the peak of its price. The most popular exchanges with a huge selection of tokens for purchase are the Poloniex and Bittrex exchanges.
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