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

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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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Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

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While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

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Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

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Hodium
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I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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