ICO's What are they and why should they care?

In the world of cryptocurrencies we can invest our capital in different ways, there are some that are risky and others that leave us secure profits. Many people will promise us heaven if we give our money, some will be right, others just want to cheat us.

Are those tokens or coins that promise us to increase our profits to exorbitant amounts, we can invest any amount we want and we will multiply it x1000 or x2000. They are the ICO's, today we will see how they work and if it is risky to invest in them.

So get ready because you are about to read another exorbitant article from the Steemit Survival Manual: D

As usual, these types of practices are not very well regulated in the world of cryptocurrencies and can leave room for many scammers to disguise themselves as kind people to monopolize all our money

This time we will see a practice that can be used by both noble people with great ideas and ambitious opportunists

ICO's
What are they?
Imagine that a whole city is full of entrepreneurs with great ideas, they have many projects in mind, however, they have very little budget to carry them out, the ICO's are the solution.

Initial Coin Offering, is a way to give budget to structured projects but with little money. The procedure of how it operates is the following:

A company or person that needs funds to start a project, creates its own currencies with a certain value, shows the project to all the possible investors that it can. To finally tell them that if they buy their currency and the project triumphs, it can have a much higher value.

The idea alone has absolutely nothing fraudulent, however, the dangerous comes later.

Why are they risky?
As we said at the beginning, they still do not have enough rules to be completely safe. Anyone who has enough knowledge to create it can do so, which leaves open the possibility that many people with completely futureless projects can sell their coins as if we were talking about the new Apple.

This is where we have to be careful, since this type of coins goes on sale long before the project starts. All the people who have hope that it will work, so they observe how the coin increases in value gradually.

However, you never know when it will fall, usually this happens when the farce is discovered, since it is said that most projects have no basis to be successful. So they end up being discarded and consequently the value of their currency plummets to very low levels.

In conclusion, the idea of ​​ICO's is not fraudulent. However, there is always the risk that any child with sufficient knowledge can create one from the basement of his house.
We have to be very careful if we want to invest our money in these types of currencies. In general, with people who promise us exorbitant profits in a very short time and without any effort.

What do you think about the Initial Coin Offering? : D

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