When is the Best Time to Buy Digital Coins (EOS)?

One of the most important questions for those who are looking to invest in a new cryptocurrency is when they should buy them. Whenever a new crypto is developed, the team behind it will start selling the tokens in ICOs (Initial Coin Offering). However, the question remains – is it a good idea to buy cryptos during this time? Let’s take EOS as an example.

EOS ICO

It has been almost a year since EOS announced that it will hold a token sale in an ICO. Many have wondered whether or not to buy the tokens during this period, and what might be the consequences of their decision, one way or the other. To understand this, first, you need to learn how investors think, what they do, and how many coins do they get when they make a purchase during an ICO.

How do ICOs work?

When the sale initially starts, there is usually a certain period of time (5 days in EOS’s case), during which the first 20% of the mined tokens are available for purchase. In case of EOS ICO, this amount was 200,000,000 EOS tokens. The rest of them (800,000,000) were to be split evenly in one-day windows during the next 360 days. Basically, this meant that EOS will be selling 2,222,222.222222 tokens per day for the entire year.

Now, since you can only buy EOS with Ethereum (ETH), your gains will depend on how much you invest. If there are 20 EOS tokens available, and one person invests 4 ETH, while the other only contributes 1 ETH, the first investor will get 16 EOS, due to the fact that they contributed 80% of the contributions that were given in total.

Now, this is an easy thing to understand if there are only two contributors to the token. If there are more people investing, then each contribution will carry less weight, which will result in lower gains. This is why the biggest risk when it comes to buying tokens is during the initial 5 days of the sale.

This all can vary a lot from token to token, as well as from ICO to ICO. There have been some ICOs that were completely sold out in a matter of minutes. Some even took only seconds before the supply of tokens was drained completely. This is often the case when large corporations join in, and there is basically no room left for individual investors to join in on the sale.

This is why EOS did things differently so that even the small investors would get their chance to participate.

When to buy tokens?

The timing of the token purchase is the most important thing, and to figure out when is the best time for you to make a purchase, you need to understand what other investors will do. You can get a hint by following what people are saying on social media. If the ICO receives a lot of positive hype, then buying the tokens as soon as the sale begins will probably result in receiving fewer coins, since the demand is so high.

If others seem uncertain, and the ICO doesn’t receive that much attention, the chances are that the return for the early purchase will be much higher. The thing about making this choice is that there is no certainty when it comes to the outcome. All you can really do is try and find clues in the media, and keep an eye out when it comes to the general mood of the other investors.

Those who are uncertain at first will probably start buying coins at a rapid rate after the first few days, which leaves you with an opportunity to get great returns by joining in early. This method works pretty well when it comes to large companies as well. After all, you are only one investor, with limited resources, and a small amount of money. That means that you probably can’t buy that many coins, but it will also make your losses in case of a bad decision much lower.

Companies often have millions that they are planning to invest, and if they make a wrong move, their losses will be significantly higher. Because of this, large investors and companies will often be uncertain and will choose to wait and see how things turn out. This is the perfect time for smaller investors to make their move, and take advantage of the situation.

Getting in early is a good way to get high rewards for your investment if you are willing to take the risk of making a wrong call. However, if you are not after high returns, and are simply looking to make a good, stable investment that will have positive consequences, in the end, you should definitely wait and see how the things turn out.

How to tell if the coin is a good investment?

Deciding whether or not to buy a coin depends on a lot of things, so you will have to do some research in that regard. You should try and find out what you can about the coin, including its developer, his previous projects, and their success, as well as the coin’s goals. A lot of the coin’s future depends on what its blockchain can offer, but also its own features.

Apart from that, if you are willing to wait before investing, follow the situation, sign up for the token’s official newsletter, and follow the team’s announcements on social networks. Twitter and Reddit are a good place to hear other people’s thoughts as well, so keep that in mind before making your decision.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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