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.
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.
For the latest cryptocurrency news, join our Telegram!
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.
Image courtesy of Pexels
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
Should Crypto Projects Devote Resources to Community Growth and Marketing?
2020 has been an incredible year for crypto as investors have generated windfall profits and crypto projects have seen their businesses gain the spotlight they’ve been looking for. While Bitcoin has received most of the attention after major institutional investors announced they were accumulating the increasingly scarce asset, many altcoins have also seen their fair share of glory. When looking at all the big winners of the past year, the first project that probably comes to mind is Chainlink, having appreciated by more than 550% YTD and now valued at over $4.5 billion. But, the actual biggest winner of the year is HEX with a YTD return of over 5,000%.
I mention both of the above projects as they have each taken slightly different paths to achieve greatness. Chainlink has devoted resources toward building a fundamentally sound business with many strategic partnerships while HEX has spent vast sums of money on marketing and promotion. Both approaches are valid, but one thing is certain, it is absolutely imperative for crypto projects to let the crypto community know what makes them special. Of course, one of the reasons that makes crypto so valuable is the powerful blockchain technology that most projects are utilizing.
Cryptocurrency vs. Blockchain Technology
It’s important to make a distinction between blockchain technology and cryptocurrency. Although they are often used interchangeably, they are different. Blockchain technology and crypto were both created after the 2008 financial crisis, but cryptocurrency…
XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata
Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //
The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.
As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021.
“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.
He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”
Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”
Mr. Yamagata has been…