By Josiah Wilmoth
Initial coin offerings (ICOs) present investors with the opportunity to enter the burgeoning crypto finance industry during its early stages. ICO investments have surged in 2017, and contributions to startups using this nascent funding model are expected to surpass $2 billion by the end of the year.
Nevertheless, even sophisticated investors often have trouble navigating the crypto finance ecosystem, which is why Strategic Coin has set out to help investors take advantage of market opportunities as they arise. Below, this article provides a guide to token exchanges and other resources that investors will need to trade effectively and make informed financial decisions:
Multiple initial coin offerings launch every day, so it is difficult for investors to remain apprised of promising token distribution events without adequate resources. There are several websites that curate lists of past, active, and future ICOs. ICO Alert provides a complete, unfiltered list, while services such as TokenMarket and ICO Countdown claim to conduct at least some due diligence on the projects they list.
Coin and token exchanges provide liquidity to the crypto markets. If you miss an ICO but want to contribute, you can trade for the token on one of these secondary markets. Likewise, exchanges provide you with a platform to sell your tokens when you are reading to cash out your investments. U.S. traders have access to several high-volume exchanges.
- Coinbase: Coinbase is not a token exchange. However, it is currently one of the few exchanges where U.S. residents can purchase cryptocurrency with USD, giving new investors an entry into the crypto markets. After connecting a bank account or credit/debit card to your FDIC-insured Coinbase account, you will be able to purchase Bitcoin, Ethereum, and Litecoin. You can then transfer your coins to another exchange that offers a trading pair for the token you wish to buy.
- ShapeShift: ShapeShift is widely-considered to be the most accessible token exchange, making it an ideal option for cryptocurrency novices. Just select the coin or token you wish to receive, as well as the one you wish to exchange, and ShapeShift will provide a fixed price for the transaction. Unlike most exchanges, ShapeShift does not have user accounts, ensuring that your tokens and personal information remain secure.
- Order-Book Exchanges: Investors can also trade their coins and tokens on conventional order-book exchanges. These exchanges allow traders to place buy and sell orders in real time, but they are sometimes intimidating for novice investors. Three of the largest token exchanges open to U.S. investors are Bittrex, Poloniex, and Kraken. Because exchanges handle a significant amount of volume, they may be targeted by hackers. Consequently, users should withdraw their balances when they are done trading.
Strategic Coin is your go-to source for cryptocurrency investment research and education. Whether you need help understanding the basics of blockchain technology or desire to read an in-depth analysis of the latest initial coin offering, Strategic Coin will provide you with the information and resources you need to understand the crypto finance industry.