The development of bitcoin shows that cryptocurrencies can be more than an instrument to make a transaction between two parties. Rather, the value of a cryptocurrency is the result of a digital interaction between demand and supply.
This is difficult to comprehend for many investors. That’s why new investors tend to resort to ICOs, because there they get a link between a token and something more tangible, for instance a property or equity. This type of cryptocurrency therefore may offer a suitable opportunity for a new investor in this asset class.
2. Which Are the Trustworthy Trading Platforms?
One of the most important questions of a customer is about how crypto exchanges work and how save they are. A legitimate question for sure, because at times it is difficult to understand what is legal and worthwhile and what by contrast is fake.
The distinction between true and false in the crypto-world requires a fair degree of research. Google won’t provide enough reliable reports. A provider in Switzerland ought to have a registration with the regulator, Finma, and should equally so belong to a self-regulatory group. U.S. firms will need to be signed up with the SEC and Finra.
A relationship manager should check with a compliance officer whether a platform is compliant with the latest regulatory demands. This is necessary in order to build a long-term perspective and create transparency for the client.
3. How Can You Earn Money With an ICO?
The standard question: while it is relatively simple to explain the mechanism of a crypto offering, the answer as such will need to reflect the investor perspective. The issuance of a tradeable token is not the same as an investment opportunity that is aimed at the preservation of assets.
