It is important to note that all coins or tokens are regarded as cryptocurrencies (crypto assets), even if most of the coins do not function as a currency or medium
There are five different types of tokens, and they are divided by their functionalities: Utility Token Security Token Currency Token Reward Token Asset Token Utility Token Utility tokens, often called
You can buy tokens: Pre ICO During ICO After ICO Buying tokens before ICO Most ICOs have 3 parts to their tokensale: private sale, presale and crowdsale (public ICO). ICO
Once you have acquired the tokens you like, you can do one of these three things:
- Use it in a platform
There are plenty of successful and profitable ICOs out there. Once the company successfully goes past the ICO stage, its value should start getting higher, as the company itself becomes more trusted and well-established in the marketplace. At the same time, the token’s value will go up as well, enabling investors to gain bigger profits. Usually, people think that the only way to make money in crypto is to buy tokens when the price is low and sell them when the price rises. However, there is smart way to earn money as an early Venture Capital Investor in the Crypto space.
When you buy token and it gets listed on one of the cryptocurrency exchanges, you will be able to trade it. Bitcoin and Ether are going to be the only trading options for quite some time after it gets listed, with other trading pairs being supported later on (if the token is in demand). But keep in mind that some tokens will never get listed.
You will probably need to sit on your investment for a while. Sometimes, a massive loss happens straight away, or you do not see any gain for a long time. And then, a quick and massive spike might happen, which can either mean that the token’s value will keep rising or it could be a one-time event, after which the value of the token might go back to virtually nothing. Those spikes can happen within just minutes, and you need to be able to catch them. Many exchanges have alerts or “set a stop loss” options, so take full advantage of those.
You can use tokens in the apps or platforms for many purposes. This mainly relates to utility tokens.